The Tribune

A Bahamian financial services provider yesterday urged citizens and investors to exploit the COVID-19 pandemic for opportunities rather than simply panic.

Sean Longley, Leno’s founder and president, said: “We read the headlines daily. We follow reports of business concerns and closures. We understand the impact of higher rates of unemployment, and the fear of uncertainty about how long that may last, but if I can send a strong, single message it is this – don’t panic. Out of crisis comes opportunity.”

Leno, which offers investments, trust, real estate and corporate services, was forced to put its own plans on hold when the March 17 lockdown to slow COVID-19’s spread was announced. The pandemic has delayed construction on its new $25m, five-storey glass and steel headquarters atop Collins Avenue.

“Our team has been meeting daily among ourselves via Zoom and with clients, assessing unfolding circumstances,” Mr Longley explained. “The Bahamian fiscal reality is this: We had $1.8bn in liquidity in our system before COVID-19. That is a very healthy amount, though we knew even before this pandemic we were heavily dependent on tourism to maintain foreign reserves.”

With border closures, hotel shutdowns and empty air and sea ports extending into their third month, the outflow of foreign currency to keep the islands supplied with supplies including oil and food has vastly exceeded inflows to replenish the foreign reserves.

Mr Longley, whose company manages $800m in assets, said this is no reason to panic but, instead, a call to look at new, additional or different revenue sources. Enhancing or replacing traditional sources of tourism-driven revenue is no longer a “pipedream for a future generation”, he added, but a necessity if The Bahamas is going to create a new pathway for commercial success going forward.

“Real estate,” he said, “construction, development, technology in education and in financial services. There are many avenues if we are open to accepting that this is a new environment, and we do not want to sit back and ‘wait until things return to normal’ when we do not know what the new normal is or what it will look like.”

Leno is looking at an accrual vendors’ fund. Such a vehicle will allow a group of people to purchase and develop real estate, or to invest in bonds or other securities. Leno handles mutual funds, but says a proposed accrual fund would be for those who want to participate in a specific project.

“Right now, borrowing that $252m through the IMF, which government has been authorised to do, is a necessary evil,” Mr Longley said. “In more traditional times, with tourism our major breadwinner, it takes The Bahamas 18 months to recover from global setbacks; especially any setbacks that impact the US the 2008 great recession did.

“In this case, we do not know how long it will take, but we know that our foundation is strong, our foreign reserves are healthy and we have to be prudent to maintain that position the best we can while we invest in new opportunities that arise as a result of crisis. We cannot cave when we know we are rich in resources, imagination and ideas with the ability to succeed.”