By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
THE Minnis administration is seeking approval from Parliament for a new loan of $100m to invest in Bahamas Resolve Limited, Minister of Finance and Deputy Prime Minister K Peter Turnquest announced yesterday.
He said the government remains committed to facilitate Resolve retiring its original $100m promissory note issued to the Bank of the Bahamas in respect to the initial tranche of toxic loan transfers.
After exploring funding options, Mr Turnquest said the government is of the view it would be best to access the domestic market given the ample levels of excess liquidity.
"In the first half of this fiscal year, some $69m was expended from current government resources as part of the $100m that the government is to invest in Resolve," he told Parliament yesterday during his mid-year budget communication.
"As I foreshadowed in my statement to Parliament on Resolve, in September of last year, and as was disclosed at the time of our recent international bond issuance, the government committed to facilitate Resolve retiring the original $100m promissory note issued to the Bank of The Bahamas in respect of the initial tranche of toxic loan transfers, in accordance with an agreed schedule.
"After exploring funding options, the government is of the view that it would be best to access the domestic market, given the ample levels of excess liquidity. In line with this commitment, new corresponding borrowing authority will be sought from Parliament, today, to cover this sum."
Following his address to Parliament, Mr Turnquest moved a resolution seeking the funding.
The resolution authorises the minister to raise the funds by way of the creation and issue of stock, loan agreements or the issue of bonds.
Bahamas Resolve is the special purpose vehicle the Christie administration created in 2015 to clean up BOB's balance sheet and go after loans the bank was unable to recover.
Comments
alfalfa 6 years, 2 months ago
Okay. We know what Resolve is and who created it. My question is when will the government make it known publicly, as to which loans were transferred to Resolve and what really has been done to collect them. For that matter what has happened to the entire portfolio of questionable loans at BOB. We have heard names like Leslie Miller, Pat Mortimer, and Obie Wilchcombe mentioned as some of the delinquent loans (in the millions) but still see no action taken to garner their assets and they are operating business as usual. Furthermore, the results of a forensic audit have not yet been made public. Is anything going to happen to McQueeny, the Chairman, the board et al, who approved these fraudulent transactions. Me thinks not. Politicians protect each other. Because you never know who will win the next election, and many hands are mired in graft. No change here.
Well_mudda_take_sic 6 years, 1 month ago
This additional $100 million will bring the total BOB bailout cost by taxpayers and national insurance fund contributors to over $450 million. And this does not include the losses in value incurred by government and the National Insurance Fund on their original shareholdings in BOB before the bailout support began, not to mention the wrongful interest payments made by government to the holders of preference shares issued by BOB. What a joke!
John 6 years, 1 month ago
So then are we to assume that no loans were settled, even partially or no collateral seized on the One Hundred Million in toxic loans that was transferred to resolve. This is criminal.
DDK 6 years, 1 month ago
What a crock! Let the Parliamentarians sign the note individually and privately if they want to pursue this madness. This would be $100m worse than the BEC/BPL chicanery designed to deceive the public. Beginning to think KPT is a trained magician.
bogart 6 years, 1 month ago
See Tribune Gov't pays '3x' value of BOB's toxic loans Tuesday,October 31,2017 By Neil Hartnell See Tribune DPM: First BOB rescue, protected certain borrowers' Friday, August 4, 2017 See Nassau Guardian. Resolve loans were worth only $22.5m 28 October, 2016 by Quincy Parker .......... Whats the point of these practices acknowledging them and continuing.....while the people lining up for free soup...??sad when the commom saying peter paying for paul seems to be tru..from one govt to another..... These BOB loans need to be investigated. Public taxpayers money VAT even paid by those who in the soup lines in Freeport to support the continuous drain...Nassau patients need more beds to lie in at PMH......
Porcupine 6 years, 1 month ago
All excellent comments above. Think too, about what the DPM says here; "After exploring funding options, the government is of the view that it would be best to access the domestic market, given the ample levels of excess liquidity. In line with this commitment, new corresponding borrowing authority will be sought from Parliament, today, to cover this sum." Now, why all this excess liquidity? This is an important question, I believe. Business people do what business people do, they invest. Excess liquidity usually isn't earning too much money, is it? And, as Well_Mudda points out, this is 450 million dollars, a huge sum of money to me, that is being used to pay down loans made by our own people who are not feeling any pain for their transgressions. And we're supposed to sit back and say, "sure Mr. Turnquest, go for it." Get flucking real. I am now convinced that the FNM is not doing one bit, not one bit better than the PLP. That hurts to admit that, for I had such hope.
Porcupine 6 years, 1 month ago
Is it possible that the numbers houses have some excess liquidity? Just wondering.
bogart 6 years, 1 month ago
...number houses keep on investing in building projects as can be seen ....they compete with banks and seem to be doing a better job...they are more mobile and dont have to seek permission from some sales office and credit risk approval from some banking headoffice in some other Caribbean island.....they can manouver buy properties they dont presently need....park funds in equities as they please.....and move any market they choose in which ever direction they choose...
BahamaPundit 6 years, 1 month ago
I smell a rat!!! The need to prop up BOB again shows, clearly, that no divident payment to preference share holders should have been paid. To do so appears to be duplicitous.
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