The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

STATE Finance Minister Michael Halkitis said that he would engage a private accounting firm to assist in collecting $100 million in troubled Bank of the Bahamas (BOB) commercial loan assets, noting that the “sole focus” of Resolve Bahamas Ltd would be to collect on the outstanding debt.

“Resolve will have both the mandate and the authority to use every tool at its disposal, be that financial, commercial or policy instruments to collect payment for all unpaid debts,” Mr Halkitis said on Friday, “as such value generated by the portfolio will benefit all Bahamians. Early next week I will be announcing which partner we are engaging to achieve this mandate.

“I can confirm that we will engage a private accounting firm with extensive experience managing non-performing loan portfolios within the next few days. That firm will take over responsibility for the collection of unpaid debts immediately.”

On Friday, the government - which is a 65 per cent majority shareholder of BOB - announced plans to strengthen the bank by through the creation of a new corporation, Bahamas Resolve Ltd, which would take over $100 million in troubled BOB commercial loan assets.

He added: “The sole focus of Resolve and the manager of Resolve would be collecting on those debts and maximising shareholder value. They would not be distracted by any other function as a bank would be. Their sole priority would be maximising shareholder value. They would have very firm instructions from the government of The Bahamas that we want these assets to be maximised.”

Central Bank governor Wendy Craigg said: “We support the initiative undertaken today by the Bank of the Bahamas and the Ministry of Finance. I consider this to be a positive step that ensures the continuity of a stable and sound banking environment. his is what supports public confidence in our system and therefore contributes to overall economic and financial stability.

“The plan also restores Bank of the Bahamas’ compliance with domestic and international requirements for capital and liquidity. By extension it also promotes the interest of the bank’s depositors and allows the Bank of the Bahamas to focus on its plans for sustained growth and profitability. In keeping with our regulatory and supervisory role, the Central Bank will continue monitoring the Bank of the Bahamas as it does with all other commercial banks.”