Bahamas Resolve Ltd (“Resolve”) takes over $100 million in troubled commercial loans from Bank of The Bahamas Limited

Government Establishes Company to Take Control of Commercial Loans in Default at Bank of The Bahamas

NASSAU, The Bahamas – A new Bahamian company has been established to take over $100 million in troubled commercial loans from Bank of The Bahamas Limited. The new company, named ‘Resolve’, will focus on recouping the outstanding loan balances owed to the government.  The announcement was made during a press conference held at the Office of The Prime Minister on Friday, October 31. Prime Minister, the Rt. Hon. Perry G. Christie, said that the government made this move in an attempt to ‘return the Bank to its former glory’ as a profitable entity.

“Resolve has taken over B$100M in troubled commercial loans from Bank of The Bahamas, thereby removing this risk from BOB’s books. In so doing, the Bank’s revenue prospects will be immediately and significantly improved.  At the same time, shareholder value and the Bank’s overall financial condition will be enhanced as well.  It will also allow Bank of The Bahamas to return to profitability in the near future and will restore full compliance with Central Bank and international regulatory standards for capital adequacy,” said Prime Minister Christie.

Mr. Christie emphasized that no public funds or National Insurance funds have been disbursed in connection with the assignment of these loans from BOB to Resolve.  Instead, he said that liability for these debts has been transferred to Resolve along with the benefit of the loans and the underlying security.   He explained that as the new owner of the transferred loans, Resolve would be implementing special mechanisms to assist in the collection of the overdue loans.

Secondly, this move, under which $100 million in commercial loan debt has been transferred from BOB to Resolve, was developed in close consultation with BOB’s legal advisors in this matter, Higgs & Johnson, and BOB’s external auditors, Ernst & Young, both of whom have provided affirmative opinions on the transaction. 

And thirdly, Mr. Christie said that this type of transaction is ‘not fundamentally dissimilar to state-led re-structuring’ exercises that have been undertaken in more developed economies of the world, including the U.S in the wake of the 2008 recession.

Mr. Christie said that the Government has plans to take other measures as well.

“In addition to what I have just outlined, I wish to make it known that the Bahamas Government, consistently with its 65% stake in BOB, will be pursuing new initiatives designed to steer more public sector business and public employee credit demand towards the Bank of The Bahamas,” he said. “ In doing so, however, the Government will, of course, be mindful of its obligation to maintain a fair and competitive commercial environment for all banks in The Bahamas.  I have therefore instructed the Ministry of Finance to determine the best course of action for achieving these objectives on a correctly balanced basis.”

There are also plans for BOB to undertake re-structuring action of its own to re-align and re-balance the bank’s business model towards more retail banking, consumer lending and e-banking products.  To this end, Mr. Christie said that BOB’s Board of Directors has been given several directives.

“BOB’s Board of Directors has also been directed to assess its management and cost structure, and to submit recommendations to the Government, as the majority shareholder, for management and administrative re-organization, before the end of 2014,” said Mr. Christie.

BOB is 100% Bahamian-owned: 65% by the Government of The Bahamas, with the remaining 35% being widely held by some 3,500 Bahamian shareholders. The bank has total assets of $771 million dollars, in comparison to only $93 million when the Government acquired ownership of the bank from the Bank of Montreal 25 years ago in 1988. The Bank has approximately 40,000 depositors today with deposits totaling $679 million dollars. It has total loan assets of approximately $650 million dollars and operates through 14 branches in The Bahamas. Currently, the bank employs over 350 Bahamians.

Bahamas Resolve Ltd (“Resolve”) is wholly owned and wholly controlled by the Government of The Bahamas.

November 03, 2014

Bahamas.gov.bs

Better Bahamian-Haitian Relations for Success and Wealth in The Bahamas and Haiti

Selling Haiti as a place to invest in

The Nassau Guardian Editorial:

The Bahamas government recently signed three agreements with the Haitian government intended to further trade development between the countries and lead to a decrease in illegal migration from Haiti to The Bahamas. The signings took place during the last visit of Haitian President Michel Martelly to The Bahamas.

The agreements include a framework for bilateral cooperation, an agreement on trade and technical cooperation in agriculture and fisheries, and an agreement on the promotion and protection of investments. More specifically, the agricultural agreement allows Haiti to export fresh fruit to The Bahamas.

Talking up his country, Martelly said one way to curtail illegal migration would be for Bahamians to invest in Haiti.

“The people that come here, they don’t come here because they don’t love their country,” he said. “They come here because they want a better life.

“So if we can bring the better life to them by getting investors to go to Haiti to invest in bananas, in mango, in corn, in rice and in vegetables... that would be good enough.”

Many Bahamians are stuck in a bigoted view of Haiti and Haitians. That country is the poorest in the hemisphere and its people have long been fleeing to other nations in search of better lives.

The discussion here when it comes Haiti is too often just about the illegal migration of Haitians to The Bahamas. There is money to be made in Haiti by Bahamians.

The International Monetary Fund (IMF) projects Haiti’s real GDP to grow by four percent this year and the same amount in 2015. The World Bank notes that the positive trends in Haiti’s economy can primarily be attributed to a pick-up in agricultural production and the construction and industrial sectors – particularly the textile and garment industries.

In his opening remarks at a luncheon hosted by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) at the British Colonial Hilton during his visit, Martelly challenged the international perception of Haiti as a country dependent on donations and international aid, stating that the country is “distancing [itself] from aid and inviting trade”.

Members of Martelly’s delegation stressed the opportunities in the power, construction and agricultural sectors that Haiti offers Bahamian businesses, also calling for Bahamian assistance in strengthening Haitian financial services.

While some Bahamians remain stuck in the view of Haiti as an eternal basket case from which our immigration problems originate, BCCEC CEO Edison Sumner is wise to the gradual transformation down south, describing the growing market in northern Haiti as a “new hot spot for the incubation and expansion of business” between the two countries.

Bahamians and Haitians now need to shift the myopic discourse that has evolved between us. We need to focus on the wealth that can be created by doing business together, rather than being paranoid about the number of Haitians living in The Bahamas.

November 01, 2014

thenassauguardian

International conservationists, Biminites and other Bahamians want Bimini’s ecological heritage preserved

International Experts Call For Protection Of Bimini’S Environment

Tribune242

INTERNATIONAL conservation experts are urging the government to fulfil its promise and protect Bimini’s unique ecological heritage and the local industries that have depended upon it for generations.

The experts, hosted on a tour of Bimini by environmental advocacy group Save The Bays (STB), this week called for the official establishment of the North Bimini Marine Reserve. Among other important natural resources, the reserve would protect mangrove forests that serve as a nursery for the abundant sea life that has attracted visitors to the island over the years.

“From an ecological perspective, it’s incredibly important to maintain these mangroves in order to maintain the whole marine ecosystem,” said Rachael Silverstein, the Waterkeeper for Biscayne Bay, Florida.

“This is one of the only mangrove locations in this area and all of the important species that come from the Gulf Stream that people like to fish have habitats here and live in the nurseries here,” she said. “If we destroy that we also destroy our fishing industry and our diving industry and the repercussions can be felt across the Caribbean, across the Bahamas and certainly in Miami – we won’t be able to come here anymore to fish, to dive or snorkel.”

The global Waterkeeper Alliance is a leading non-governmental organisation that co-ordinates more than 200 stewards of the marine environment, or Waterkeepers, who are assigned to rivers, bays, lakes and coastal areas.

Sharon Khan, international director of the Waterkeeper Alliance, said the North Bimini reserve is one of several key protected areas for which the organisation is advocating around the world.

“I believe there is nothing more important than establishing marine reserves in ecosystems throughout this world that sustain our global life,” she said.

Wetlands

Alex Matthiessen, former Hudson Bay Waterkeeper and now CEO of the Blue Marble Project, said: “The (Bahamas) government has already established that they want to create this reserve, but they need to formalise it. They need to make it a legal reserve. The wetlands at the north end of the lagoon are incredibly important and are therefore vital to the local businesses and industries here.”

International conservationists have added strength to the concerned Biminites and other Bahamians who want to see the island’s ecological heritage preserved.

Prime Minister Perry Christie has yet to respond to these entreaties, including a letter from Bimini’s local council requesting that the reserve become reality as soon as possible.

The council asked that the Christie administration commit to the protected area swiftly, in an effort to ensure that developers do not construct a golf course on the island and to prevent further development on its northern tip.

The letter said: “It has become commonplace that major developments occur on our island without notice to its residents or to this elected council. We, therefore, respectfully ask that you respond to these requests as quickly as possible.”

The golf course was among the plans for Resorts World Bimini’s resort and casino development, which environmentalists claim has already caused extensive damage to the island’s renowned reef system, including many of the top dive sites.

Local advocacy group the Bimini Blue Coalition has issued a petition calling on the government to establish the reserve as repeatedly promised.

It has more than 600 signatures to date.

Despite Resorts World’s insistence that the golf course is now off the table, STB director Romi Ferreira said the pattern of frequently changing plans has left many sceptical and in need of official assurance.

As for the claim by Minister of Agriculture and Marine Resources V Alfred Gray that the government is only waiting for conservationists to decide on the boundaries of the reserve, Ferreira pointed out that its proposed parameters have long been established.

In 2012, the Bimini Marine Protected Area Campaign submitted detailed images and descriptions of the proposed boundaries to government, including precise map co-ordinates.

October 30, 2014

Tribune 242

The Bahamas' Ebola readiness test

Officials Confirm Ebola Scare

By JonesBahamas:

The country’s readiness to deal with the scare of the deadly Ebola virus was put to the test yesterday as Ministry of Health officials confirmed that there was concern that a traveler to The Bahamas may have been inflicted with the disease.

In a statement released yesterday, the Ministry said a traveler who was being transported to The Bahamas via a charter aircraft from Tennessee, displayed symptoms of vomiting and diarrhea.

“Keeping in line with our established Ebola preparedness protocols, the aircraft was diverted to a designated location,” the statement read. “A health evaluation team was transported to the aircraft where the patient was then evaluated.”

It was determined that that patient did not travel to an Ebola-affected area, nor had any contact with anyone who had traveled to an Ebola-affected area.

There were no other passengers with any signs of illness upon evaluation.

“As there was no determined threat to the public’s health, clearance was provided for the aircraft to proceed to its destination,” the ministry said.

At least seven people in the United States have tested positive for the virus and along a stretch of West African nations at least 10,000 people have contracted the disease since March with half of those cases ending fatally.

Last week a team of officials from the Pan American Health Organisation (PAHO) and the World Health Organisation (WHO) applauded The Bahamas’ efforts in preparing for a possible outbreak of the disease.

October 30, 2014

Jones Bahamas

Dr. Gerry Eijkemans - Pan American Health Organization (PAHO) ...and World Health Organization (WHO) Representative to The Bahamas ...commends the Government for its efforts “to protect its people” from the Ebola Virus Disease

PAHO Representative Applauds Local Efforts to Protect Against Ebola

By Matt Maura - BIS:


NASSAU, The Bahamas – Pan American Health Organization (PAHO) and World Health Organization (WHO) Representative to The Bahamas, Dr. Gerry Eijkemans, has commended the Government of The Bahamas for its efforts “to protect its people” from the Ebola Virus Disease.

Ebola Virus Disease is a serious infectious disease spread between humans from person to person. Infection is transmitted by direct or indirect contact with the blood, body fluids or secretions (stool, urine, saliva, semen) of infected people, but only when they show symptoms. Ebola cannot be transmitted by air. The disease first appeared in 1976 in a village near the Ebola River in the Democratic Republic of Congo (former Zaire).

“Even if an Ebola case was to hit the shores of The Bahamas, the country has taken all of the measures – based on evidence, based on what is known around the world - to protect its people,” Dr. Eijkemans said.

“I want to commend the Government of The Bahamas and to tell the people of The Bahamas that please, fear is not necessary.”

Dr. Eijkemans said the fact that West African countries such as Nigeria and Senegal have controlled the transmission of the Ebola Virus in those countries and have been declared Ebola free means countries “with even limited means,” have the capacity to control and fight the disease through sound, public health measures.

The Bahamas is well known for its strong public health programme that is facilitated by the Department of Public Health and an excellent team of administrators, doctors and nurses.

That track record includes The Bahamas’ distinction of being the first country in the region to eradicate measles. Public Health Nurses have also led the fight against other infectious diseases and epidemics such as Malaria, Dengue and most recently Chikungunya.

Public Health teams have been conducting and will continue to conduct Ebola Sensitization Training Sessions in New Providence, Grand Bahama and the Family Islands including San Salvador, Eleuthera, Exuma, Andros, Abaco Inagua, Cat Island, the Berry Islands and Long Island under the auspices of the Surveillance Unit of the Department of Public Health.

Dr. Eijkemans encouraged Bahamians to not be taken in by the fear and/or hysteria surrounding the disease.

“As the Director-General of PAHO/WHO said recently, the fear that is going on around the world, including the United States of America, is unrealistic and disproportionate with the risk that Ebola presents to the world,” Dr. Eijkemans said.

“We have to be alert, we are ready, but there is no need to panic and there is definitely preparedness here that should put everyone at ease, and so I want to thank the Government of The Bahamas for the necessary actions they have taken,” Dr. Eijkemans added.

October 27, 2014

Bahamas.gov.bs

How are we handling the issues of Chikungunya and Ebola?

High on Ebola, low on chikungunya

By DERRICK MILLER

Since the recent outbreak of chikungunya in the Caribbean, four individuals with close connections who arrived back to the U.S. from the Caribbean region were hospitalized immediately and diagnosed with the virus. In addition, a few medical center employees communicated that they have seen an increase of patients from the region admitted to their medical facilities.

I am not a medical doctor, nor I do I play one on the television; however, based on the recent reports, chikungunya has seen a significant up-tick. On the other hand, an impression is being portrayed that it is under control on these shores.

The leaders must address this issue openly and develop a solid plan before this potential storm, where soon U.S. and other countries well-traveled by Caribbean people will begin to put the medical drone on the region. The drone concept is geared to destroy anything in its path when launched. However, could you blame the U.S. if they cut travel, and begin to set high alerts and screening of passengers from the region?

The recent death of Thomas Duncan from Ebola at age 42, after arriving in the U.S., has created an intensive focus on foreign travelers from many poor and developing countries. Although many believed Thomas Duncan’s death while in U.S. care would inevitably send a statement to others to not come, many people are now wondering what the color of medicine is after two dedicated Caucasian doctors who worked in Liberia contracted the virus and recovered. One of the silent tones in the Caribbean addressing chikungunya, I believe, is not the politics of the virus, which is often seen elsewhere – for this region, it is all economics.

Here is why: in most of the region, the economic engine is tourism, and if what has taken place in Liberia is any indication, the fallout could be worse than the economic collapse in 2008 which has left many still sneezing. I begin to wonder if the reason reports of this increasing tide seem a bit hushed up is to protect the tourism industry while many locals are suffering silently. The appropriate business model during a turbulent time is not only to be prepared, but also willing to inform about structural problems. This approach not only builds credibility, but also shows a level of leadership that is lacking today on several fronts.

This is not a call for a reduction of travel to and from the region, or high-level screening at airports; that would be premature at this point. On the other hand, when the local government is slow to educate people, it could be the beginning of a tornado building. Therefore, questions must be asked. Along these blue waters, there lies an undercurrent that can overflow the banks at anytime, and the long-term impact could cripple many lives, both medically and economically.

Managing these issues takes compassion and resources. Recently I saw a Facebook picture post of what appeared to be a sick person from the region who became more victimized as he was scorned because of the appearance of what was believed to be the symptoms of the Ebola virus. Furthermore, when it is reported that a few local doctors are contemplating refusing to report to work in the event of an outbreak due to the lack of medical supplies and other resources, it is troubling.

In today’s society, where billions are being spent on wars and politicians’ re-elections, it is hard to fathom that lack of resources and awareness, combined with scorn, can leave many more suffering. I hope elected officials, medical personnel and CARICOM step up to educate people and seek help through awareness, because potential problems such as what is occurring in Liberia and other West African countries, where perception is more dangerous than the actual virus, can happen here too.

These islands are unique and sometimes that can be their own downfall because the uniqueness creates a form of isolation. It further limits collaboration, as all seem to be competing for a piece of the visitors’ pie. Therefore, competition mutes concerns, while marketing becomes a “them and not us” mentality.

This virus is not just an island thing, and nor is it found only in third world countries. One of my less-informed friends stated that he is going to stop eating chicken and stop going to places where lots of chicken is found.

Education is key: no, you cannot get it from eating chicken or visiting places where chicken is in abundance. The name chikungunya derives from a word in the Makonde language, roughly meaning “that which bends up,” reflecting the physical contortions of a person disabled by the disease. Many reports have noted that it was first identified in Tanganyika (now Tanzania) in 1952.

According to the Pan American Health Organization (PAHO), the first known autochthonous chikungunya cases in the Western Hemisphere occurred in October 2013 on the island of Saint Martin. By March 2014, travelers to other Caribbean islands carried it to: Dominica; the British territories Anguilla and British Virgin Islands; overseas territories of France like Guadeloupe and Martinique; and the constituent countries of the Netherlands Antilles, as well as other areas such as St Kitts and Nevis; the Dominican Republic; and St Vincent and the Grenadines.

An estimated 3.6 billion people in 124 countries are at risk worldwide, such as the many who are exposed to dengue fever. Large outbreaks have also been seen on Indian Ocean islands, in India and South-East Asia, according to the Infection, Genetic, and Evolution Journal. It has also reached Asia and Europe, and North America has seen a few cases recently in Florida.

The National Institute of Health, the World Health Organization, public health departments and infectious disease authorities have noted that chikungunya is a viral disease that is rarely fatal. It is transmitted to humans by infected mosquitoes.

The symptoms include high fever and headache with debilitating joint pains, swelling and stiffness of joints, muscular pain, headache, fatigue, nausea, vomiting, and a rash that can last for several weeks. Normally within four to seven days after been bitten, the symptoms appear.

The mosquitoes become infected when they feed on an infected person during the viraemic period. Today, there are no specific antiviral treatments or vaccines available. However, it also has been reported that commonly used medications include ibuprofen, naproxen, acetaminophen, paracetamol, and aspirin. Although there have been reported deaths, the numbers are extremely low compared to Ebola; however, one should not discount it as a storm that will pass soon.

These regions have to debunk the notion that only certain medicines can cure this outbreak, while many studies have been reporting there are no known cures at this time for the symptoms. It is extremely important that people take serious preventive measures such as wearing bite-proof long sleeves and trousers. More information has been published by many health organizations.

It can be extremely difficult to track down all mosquitoes and apply chemical spray on an entire region to reduce concerns.

Today many travelers are still waiting on a concrete government plan on how they are handling the issue in a coordinated effort. If there is one, please post.

Although some awareness has been registered, and governments seem now to be taking steps to mitigate the potential problem, more needs to be done. Nevertheless, can we all be stratified?

As the region continues to attract visitors, it is also important that these visitors receive a disclaimer of this undercurrent taking place. The leaders must make sure that all proactive measures are taken, seek help and resources as needed and stop putting on a good face on such issues with a relaxed attitude. I am still optimistic that all can come together and weather this storm. Moms and I have a ticket ready to land soon to take a break from this upcoming winter.

• Derrick Miller is a trained U.S. Federal law enforcement officer that has been in the criminal justice field for more than 14 years.

October 22, 2014

thenassauguardian

Bahamas Immigration Policy Update

" I wish to remind the public that the constitution of The Bahamas does not give citizenship at birth to those born here of foreign parents."

I wish to give a brief statement in response to the feedback on the administrative measures announced by me in the House of Assembly on Immigration.

I said that there would be certain changes expected on 1st November following a period of feedback.

Nothing that has come back by way of feedback on the policies indicates that there is a need to change that administrative starting date. The date will therefore stand as the commencement date of the policy.

The policy is not aimed at any national group in The Bahamas. It is generic in nature. It seeks only to better ensure that the people who live and reside in The Bahamas have the lawful authority to do so, either because they are citizens of The Bahamas or they have permits to reside or work here.

I repeat that with immediate effect, we are no longer accepting applications for first time applicants for residence or work permits from those who have no legal status in The Bahamas. Those persons also will no longer be able simply to demonstrate that they have departed The Bahamas. This is in response to the increased suspicion of fraud in connection with these applications. In order for such a first time application to be processed, where the individual has no legal status in The Bahamas, the applicant must be seen and certified as having been seen by an officer of the nearest Bahamian embassy if there is no Bahamian embassy in the applicant's home country. The embassies are in a position to process these certifications.

Secondly, all those who are not nationals of The Bahamas who live in this country beginning 1st November will be required to have the passport of their nationality and evidence that they have permission to live or work in The Bahamas.

This may represent a broad class of people. I wish to remind the public that the constitution of The Bahamas does not give citizenship at birth to those born here of foreign parents. Those children have a right to apply at their eighteenth birthday and before their nineteenth birthday for citizenship of The Bahamas. Up to the time they are granted citizenship, in law they are not Bahamian citizens. This means that these people will be required to have a residence permit to reside lawfully in The Bahamas.

This is a requirement for which there will be no exceptions, save and except where someone is stateless. In the case of a stateless individual, the Government will provide an identity document but otherwise the practice of issuing certificates of identity is to cease on 1st November. When the currency of existing certificates of identity expires, they will not generally be reissued or renewed.

We will speak with the all embassies in The Bahamas and we anticipate that embassies will be able to meet that demand for passports.

We anticipate also that in the case of one national group it may take administratively some three months to meet and process that demand and for the Department of Immigration to process the volume of applications for resident permits.

In any event, we expect that by 15th January 2015, most people will have complied with this requirement and certainly that children will have complied for the start of the school term in 2015. If any citizen has a difficulty, they should contact their local embassy for assistance with particular problems.

These measures are for the general good and will provide a more secure form of documentation for all who work and live in The Bahamas. I would therefore urge all citizens residing lawfully in The Bahamas to comply with these new measures.

Those who are not here lawfully should expect increased vigilance and enforcement on the part of the law enforcement authorities in The Bahamas.

I wish to thank the public for their support of the measures, and for the responsible manner in which these have been accepted.

In particular, I would wish to commend the continuing dialogue with leaders of the Haitian community and for their efforts to ensure compliance with these administrative measures.

The door remains open for continued comment and dialogue as we seek to make The Bahamas a more secure place to live.


Bahamas News Ma Bey