03292023 BUSINESS

Judge bids to protect $2.3m for City Markets pensioners

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE SUPREME Court has upheld an injunction seeking to preserve $2.288m for the benefit of City Markets pensioners even though 75 percent of this sum may already have been paid out to “third parties”.

Justice Diane Stewart, in a March 27 verdict, ruled there were strong reasons to maintain such protection because this is the best source for hundreds of the defunct

supermarket chain’s long-suffering pension beneficiaries to recover some of their retirement savings more than a decade after its collapse.

However, her decision revealed that a significant amount - some $1.706m of the $2.288m received by the pension fund - may have already been “dissipated” and paid out to unnamed third parties by the trustees for the Bahamas Supermarkets Employee Retirement Fund, as the City Markets employee pension plan was known.

Cruise port targets $3m annual refinance saving

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

NASSAU Cruise Port will save close to $3m per year from refinancing the existing $138m bond debt that kickstarted its redevelopment, with its top executive yesterday saying: “We’re so much more than just a cruise port.”

Michael Maura, the Prince George Wharf operator, told Tribune Business

that the $300m transformation that is scheduled to be completed by endMay 2023 will enhance “the value proposition of the destination” by both adding amenities such as a Junkanoo Museum and serving as a catalyst for the wider regeneration of downtown Nassau.

He spoke as its controlling shareholder, Global Ports Holding, hailed the project “as a global blueprint for future cruise port

The $2.288m represents the net sales price paid by BISX-listed AML Foods, the Solomon’s SuperCentre and Cost Right operator, to acquire the pension fund’s most valuable asset - the former City Markets headquarters building on East-West Highway. That transaction, agreed more than six years ago on September 21, 2016, has become embroiled in a furious legal battle stemming from disputes between parties associated with the pension fund.

The latest developments, as outlined by Justice Stewart’s judgment,

mean pensioners and former City Markets workers are no nearer to receiving what is due to them following the company’s 2012 failure. And it suggests there may not be much left for them to collect as much of the AML Foods purchase payment already seems to have been disbursed.

The disclosures came as Justice Stewart rejected the bid by Dennis Williams and Rosalie McKenzie, the pension plan’s trustees, to “discharge” or vary the injunction

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CHESTER COOPER, deputy prime minister and minister of tourism, investments and aviation, on Monday met with Royal Caribbean International chief executive, Michael Bayley, at the Fort Lauderdale Marriott. He was accompanied by John Pinder, parliamentary secretary at the Ministry of Tourism, Investments and Aviation; Senator Randy Rolle, the ministry’s global relations consultant; and Dr Kenneth Romer, the ministry’s deputy director-general and director of aviation. Also at the meeting was Nassau Cruise Port chief executive and director, Mike Maura.

investment”. And it was also confirmed yesterday that Nassau Cruise Port is aiming to refinance its existing bonds at an interest rate that is some two percentage points lower than when it was placed at the height of the COVID19 pandemic in May-June 2020.

A note issued to the Bahamian capital markets by CFAL, the investment house/broker charged with placing the refinancing, confirmed that investors will be offered a 6 percent interest coupon as opposed to the existing 8 percent rate. Based on $138m in debt principal being refinanced, Tribune Business calculations show annual interest (debt servicing) payments will fall from $11.04m to $8.28m - generating a $2.76m saving.

Cable Beach developer urged: ‘Pay homage’ to Viking Court

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

• Top executive: ‘We’re so much more than just a cruise port’

• $138m debt to be refinanced 200 basis points lower at 6%

• Hailed as ‘global blueprint for future cruise port projects’

“In the conversations I’ve been party to everything looks good for the refinancing,” Mr Maura told this newspaper, voicing optimism it will be fully subscribed. “Obviously the business is bouncing back; our numbers are great. We would also have had

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Chamber chief: ‘Spare no effort’ on Ginn resolution

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

GRAND Bahama’s Chamber of Commerce president yesterday urged that “no effort be spared” to find the right buyer for the former Ginn project whose progress has stalled for more than a decade.

James Carey told Tribune Business it was “critical” that the correct investor be found to fulfill the original development vision for the 2,012-acre West End site after this newspaper revealed earlier this week that Kingwood

International Resorts; bid to obtain the necessary government approvals had again been rejected by the Davis administration.

“Ginn started with a bang in West End, Grand Bahama, many years ago, and it was intended to really be the economic catalyst for west Grand Bahama,” he said. “Nothing much has happened in the west since then apart from Old Bahama Bay, which although open appears not to be doing too much else.

“It’s critical for west Grand Bahama, and ultimately all Grand Bahama,

because it would provide employment for a number of people in the Freeport area looking for jobs. Obviously it’s critical, and effort should not be spared to locate and find the right buyer for that project and get it all done.”

Mr Carey said Grand Bahama had something of an unfortunate track record with major resort projects and investments, as the Royal Oasis, Ginn and now the Grand Lucayan have all lain dormant for years and, in the case of the former two, well over a decade after developers foundered, failed to

deliver on their promises and ambitions, and exited in various ways leaving the island, its residents and the private sector to pick up the pieces.

“It’s just very unfortunate,” he added of the island’s history in resort operations. “We’ve taken baby steps forward but taken giant steps back from time to time. One of the things that’s really encouraging is the resilience of the people in Grand Bahama. They’re still very determined to make it and work through it. The importance of

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Apprenticeship Act overhaul for school leaver skills boost

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) labour division head, told Tribune Business that the National Tripartite Council is working on reforms to the Apprenticeship Act - passed some 40 years ago in 1983 - to not only boost job prospects for young Bahamians but also improve workforce

productivity and overall economic growth. A vice-chairman of the Council, the body that deals with all labourrelated matters in The Bahamas, he said: “We’re amending the Apprenticeship Act right now. It’s very old; it’s not 2023. I can’t remember when it was put in but it’s old,

SEE PAGE B3

A CABLE Beach developer is being urged to “pay homage” to the existing building on a site it wishes to rezone for a mixed-use retail and condominium project immediately west of Quality Supermarket.

Shavanna Dean, senior assistant preservation architect with the Antiquities, Monuments and Museums Corporation, called on Friendly Pharmacy and its principals to incorporate “significant features” into their plans that will allow the original architectural style of Viking Court to “live on” even though it is not listed as an “historic resource”.

Documents filed with the Department of Physical Planning show she made her plea in a March 7, 2023, report on a site visit that was conducted by AMMC representatives accompanied by Friendly Pharmacy executives, Ms Flowers and Ms Newbold, as well as the latter’s architects, Marcus Laing and Kenyon Osborne of TDG Architects.

The visit, held on February 14, 2023, was intended to “verify the historical, architectural and cultural significance of this property” even though it was not listed on the National Register of Historic Resources because the development plans call for its demolition.

“After assessment it is believed that the building was built circa 1956 with additions circa 1984,” Ms Dean’s report said. “Though the building is over 60 years it does not have strong (enough) architectural or historical significance to make the case that it is not demolished. Artifacts such as drawings, letters, posters etc were found on site and are now in AMMC’s possession.

“We understand that a newly-constructed plaza will now reside on this site. It is, however, recommended that new plans pay homage to the existing building in some way by adopting significant features that will allow the architectural style to live on.

“In the Cable Beach area, older buildings such as Vikings Court are being demolished or otherwise lost. New modern building styles completely alter the overall appearance of what makes our country architecturally unique. It helps to be able to maintain some appreciation/appearance of our architectural and cultural identity when constructing new buildings.”

However, the present plans for the proposed Viking Court Plaza - as filed with the Department of Physical Planning - give no indication that the design or layout will incorporate such

SEE PAGE B4

• But 75% already paid out to ‘third parties’

• ‘Prejudice apparent’ for retirees, AML Foods

• Hundreds waiting over decade for recovery

Photo:Kemuel Stubbs/BIS

REMITTANCE TAX WOULD RETAIN MIGRANT BENEFITS

By RODERICK

Most of us will never be so vulnerable or desperate as to leave our birth country due to violence, crime and extreme poverty. Most of us empathise with the stories shared by the media that portray inhumane living conditions and a daily fight to survive in many lesser developing countries (LDCs). The issue of illegal Immigration is truly a test of humanity. But where do we draw the line? While it may be a hard pill to swallow, a line must be drawn. Haitians by far constitute the largest migrant community in The Bahamas. Haiti has an estimated population of over 11.5m and, every year, The Bahamas seemingly becomes home to more undocumented immigrants in search of a better life. Our governments, both past and present, have been generous enough to accommodate both illegal and legal migrants. But the rising costs of living, and lack of diversification in the Bahamian economy, simply do not allow for The Bahamas to be home to hundreds, let alone thousands, of illegal immigrants.

The cost of illegal Immigration

For a developed nation like the US, illegal immigrants and their own citizen children cost taxpayers an additional $12bn to $16.2bn annually in the provision of education, public services and incarceration after deducting all local, state and federal taxes they pay (Huddle, 1995). Economies of scale would give a different and far more precarious scenario for The Bahamas. According to a survey released on Haitian migration to The Bahamas in 2006: “Haitian migrants are not well integrated into Bahamian society. Owing to low income levels, they make considerably more use of public than private healthcare and education services, while seeking help amongst themselves for

other kinds of social support.” It is noted that an estimated 70,000 illegal immigrants, mainly from Haiti, currently live in The Bahamas. Some argue that this number is higher since there are many undocumented migrants who are not counted. But, whatever the true number may be, we do not have the economic and social means to sustain large numbers of illegal immigrants. A study has yet to be done to show the percentage of taxpayer dollars that goes towards covering illegal immigrants for displacement costs, public healthcare, labour markets and education services. It is also important that we capture some form of revenue from migrants who seek a better life in The Bahamas. This can be done via a remittance tax, which is a percentage paid on a cash transfer made from one person to another outside residing outside The Bahamas. This would allows us to see the ratio between benefits given versus those gained by migrants - both legal and illegal. Outside of breaking Immigration laws, the presence of illegal immigrants also has a negative effect on employment for Bahamian workers. This is not to say that immigrants who come to The Bahamas are all free loaders. Many Haitians are very dedicated workers. You may find that

Carnival registers eighth vessel with the Bahamas

Carnival Cruise Lines says it has registered an eighth vessel on The Bahamas’ shipping registry.

The Carnival Venezia was officially registered yesterday with the Bahamas Maritime Authority (BMA). During a ceremony

in Cadiz, Spain, the vessel’s senior leadership team and the classification society completed all necessary registration processes and raised the Bahamian colours to designate its flag state status.

“We’re thrilled to celebrate another maritime

milestone as Carnival Venezia joins the seven other ships we have registered in The Bahamas,” said Christine Duffy, Carnival Cruise Line’s president.

“The BMA is among the most respected administrations in international shipping, and we value their

immigrants tend not to have inflated egos about the type of work they are able to find. Nonetheless, it does not change the affect it has on the Bahamian to foreign labour ratio. Bahamians are skilled in many blue collar jobs, but illegal and legal migrants are allowed to work in industries that seek to minimise costs for a larger profit. This is one of the reasons why illegal Immigration becomes complex because it is an unspoken convenience for those that benefit from it. We are a part of the problem.

Profit sideways It is no secret that the fuel keeping the engine of illegal Immigration going is provided by some of our very own Bahamians. Have you ever wondered why some shanty towns return after a “raid”? Who are some of the captains or negotiators organising fleets from Haiti into our waters? Illegal Immigration is a business, and its model has been around for many years. It is no surprise that many seek temporary or permanent refugee in The Bahamas due to its proximity to the US. While this may be a lucrative business, it is a dangerous one that epitomises the highest form of corruption and disservice to Bahamians. There are better, safer and

more humane ways to assist refugees.

The National Development Plan The National Development Plan (NDP) has provided a strategy for improving Immigration policy. While more can be done to make conditions more humane for those entering the country illegally, it is important for our country to focus on Immigration policies that encourage the best global minds to live and work in The Bahamas in a manner which promotes prosperity for both the country and its citizens. Like many other countries, Immigration policies are centred around bringing in expatriates who can fill jobs, create new industries and offer new skill-sets. Even among those who are illegal immigrants, there are programmes put in place to ensure respect for human rights and protection for refugees. These programmes even allow for illegal immigrants to be properly documented and assessed for the opportunity to receive residency.

To strengthen Immigration legislation, the NDP has provided several options to address these matters, such as:

* A structured and clear detention policy, plus procedures for handling detained migrants

* Enforcement of fines against airlines transporting illegal migrants into the country

* An increase in social cohesion within communities

* A clear and equitable policy on addressing refugee matters

Conclusion

In conclusion, our country is doing the best it can to help others in need while building a better Bahamas. But we have our limits. We simply do not have the resources, funds and infrastructure in place to grant residency to every illegal immigrant or budget more for displacement costs for thousands of illegal immigrants when our very own Bahamian women and children are subject to extreme poverty. It is not fair. Our country has its own issues as it relates to a high debt to gross domestic product (GDP) ratio, high crime, high unemployment and little-to-no opportunity outside of tourism and financial services despite being independent since 1973. If we cannot resolve our own issues among ourselves, imagine adding burdens caused by undocumented migrants or stateless individuals. Unfortunately, we need to regain balance for the sake of our own humanity.

level of co-operation and professionalism aimed to achieve the highest safety standards.”

The Carnival Venezia is currently undergoing a dry dock in Cadiz and will depart on its 15-day transatlantic voyages sailing from Barcelona on May 29, 2023.

The ship is set to begin year-round cruising from New York’s Manhattan Cruise Terminal on June 15, 2023. A wide range of sailing options are available, with 10 different cruise durations and 22 itineraries featuring visits to 25 ports across 14 countries.

Carnival Venezia will be the first ship to feature ‘Fun Italian Style’, combining the Italian theme of the ship with Carnival’s signature brand. Built in 2019, Carnival Venezia accommodates up to 5,145 guests and 1,393 Carnival crew members.

CARNIVAL Venezia officers prepare to raise Bahamian flag.

CARNIVAL Venezia now registered with Bahamas Maritime Authority.

FTX CHIEF HIT WITH FRESH $40M BRIBE ACCUSATION

were frozen as part of an investigation into one of the counterparties it was conducting financial transactions with.

FTX’s founder was yesterday hit with fresh accusations that he sought to pay a $40m bribe to Chinese officials to obtain the release of more than $1bn in crypto assets frozen by that nation’s authorities.

Sam Bankman-Fried now faces additional charges that he “conspired to violate” the anti-bribery provisions of the US Foreign Corrupt Practices Act (FCPA) via a scheme “to bribe one or more Chinese government officials in order to regain access” to accounts held by his private trading vehicle, Alameda Research, which had been frozen by that country’s law enforcement agencies.

SAM BANKMAN-FRIED

This raises to 13 the number of charges that Bankman-Fried faces after he was arrested in The Bahamas last December and brought to the US to stand trial. The bribery allegations related to events that purportedly occurred in 2021, when Alameda’s accounts with two Chinese crypto currency exchanges

FTX’s co-founder, and others “operating at his direction”, explored multiple ways to unfreeze the accounts or gain access to the $1bn in crypto assets they held. These methods included hiring attorneys; lobbying for the assets’ release in China; and opening new accounts with the Chinese exchanges, using the names of persons not affiliated with FTX or Alameda, and trying to transfer the frozen funds to them “In an effort to circumvent the Chinese authorities’ freeze orders”.

“After months of failed attempts to unfreeze the accounts, Samuel Bankman-Fried discussed with others, and ultimately agreed to and directed a

multi-million dollar bribe to seek to unfreeze the accounts,” the US federal authorities alleged in the latest indictment filed in the southern New York district court.

“In particular, Bankman-Fried authorised and directed the illicit transfer of crypto currency intended to induce and influence one or more Chinese government officials to unfreeze the accounts. Following Bankman-Fried’s authorisation and direction, an Alameda employee sent crypto currency payment instructions for at least a portion of the bribe payment to other Alameda employees, including at least one employee located in the US.

“As a result, in or about November 2021, Bankman-Fried caused a bribe payment of crypto currency then worth approximately

$40m to be transferred from Alameda’s main trading account to a private crypto currency wallet. At or around the time of the $40m bribe payment, the accounts were unfrozen. After confirmation that the accounts were unfrozen, Bankman-Fried authorised the transfer of additional tens of millions of dollars in crypto currency to complete the bribe.”

The dates allege that the $40m bribe payment took place some two months after FTX migrated to The Bahamas in September 2021. FTX filed for bankruptcy on November 11 when it ran out of money after the crypto currency equivalent of a bank run. Bankman-Fried has remained free on a $250m personal recognizance bond that lets him stay with his parents in Palo Alto, California.

Construction materials ‘not nearly as volatile’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

BUILDING materials

suppliers yesterday confirmed that prices have “stabilised” significantly over the past several weeks but are far from returning to pre-COVID levels.

Anthony Roberts, City Lumber Yard’s general manager, told Tribune

Business: “The prices have stabilised and the market is not nearly as volatile, but the prices in general have not gone back down to the level that they were a yearand-a-half ago when the whole pandemic started.” Prices for all commodities spiked during COVID-19, with supply chain backlogs, product shortages and lack of availability all contributing to the increases as factories struggled to ramp up production when able

to restart. Building materials were also impacted by surging demand as persons used COVID-related lockdowns and restrictions to focus on home repairs and improvement projects they had previously delayed. With the short to medium-term outlook still uncertain, Mr Roberts said: “What I’m hearing is that there was some concern about a little bit of a recession on the US side, and I’m hearing things have slowed

slightly. But, certainly, in building materials there has not been any large-scale recession and I think the prices in the market are sort of backing that up.

“So we are cautiously optimistic that things would continue. There seems to be a fair bit of construction going on in the Out Islands and here, so we’re hoping it will keep pace.”

Christopher Lleida, Premier Importers chief executive, said: “Some

Cruise port targets $3m annual

FROM PAGE B1

the benefit of being able to increase the passenger facility charge by 6.8 percent on January 1, 2023, and we would have advised the cruise industry rates will go up by a further 7.1 percent on January 1, 2024.

“We’ve got growth happening in our revenue lines, supported by phenomenal projections where for 2023 we’re looking at 4.2m passengers, and we’re very confident we will hit 4.5m passengers in 2024. We’ve got industry partners practically shouting their support for Nassau, recognising there is a new Nassau that is about to be unveiled on May 26, so this is good news for everybody.”

Offering documents for the Nassau Cruise Port refinancing will be issued to investors on April 11, 2023, immediately after the Easter holiday, CFAL informed the market. The offering will take place between April 17 and April 28, closing on the latter date. Principal on the new bonds will mature on June 30, 2040, but they will

not be redeemable during the two years immediately after the offering closes.

CFAL said additional subscriptions “will be accepted on a first come, first serve basis”, but Bahamian capital markets observers spoken to by Tribune Business yesterday forecast that most - if not all - existing investors will decide to rollover into the new securities as 6 percent still represents an attractive rate of return on fixed income securities and there are few alternative investment options.

“That’ll be a slam dunk exercise,” one contact, speaking on condition of anonymity, said. “That [$2.76m saving] is real money that will go to their cash flow. It’s less risky now that the port is open. It has cash flow. The near-$3m in interest savings would make a huge difference to their bottom line, huge. All of them will roll because there’s nothing else.” Another source, voicing similar sentiments, added: “I’m not sure there’s another investment offering

in the market, and if there’s an opportunity to get a 6 percent return most peopleif they don’t have something else to do with those fundswill roll over.

“With the current number of cruise ships coming to port, and work close to completion, it’s a better situation than when they went to market initially. That was at the height of COVID, so it was difficult to raise money, and there was a higher risk at the time because the project had just started and may not have completed.

“In today’s world, where we see the economy improving and the cruise port moving forward, it seems a much lower risk offering and the returns are suitable. It’s a significant cost saving to the entity, and I’m sure it’s to the benefit of ordinary shareholders.” Besides Global Ports Holding, with its controlling 49 percent stake, Bahamians collectively own another 49 percent interest via the Bahamas Investment Fund, with the 2 percent balance held by the Yes Foundation.

prices have dropped back to near normal, but it varies and some not quite so much. Supply is still an issue with some commodities and it depends.”

The Bahamas is typically the last country to be served by US exporters because they focus on taking care of their domestic market first.

“We’re the first ones to get cut off and the last ones to get cut on,” Mr Lleida said. “Compared to where it was a year-and-a-half ago

refinance saving

Global Ports Holding, in recently unveiling its financial results for the nine months to end-December 2022, said Nassau Cruise Port had received close to four times’ as many passengers as it handled during the COVID-hit prior year comparative when cruising only resumed in June 2021.

“Nassau Cruise Port benefited from its proximity to the key home ports in Florida and the cruise lines’ continued desire to operate a higher volume than normal of short cruises in this area at the expense of longer itineraries to other parts of the Caribbean,” Global Ports Holding said of the nine months. “As a result, Nassau Cruise Port welcomed 2.6m passengers in 2022, up from just 687,000 passengers in the comparable period last year.

“Nassau Cruise Port, on some days, is now hosting six cruise ships simultaneously, utilising the new berthing that was created as part of our significant investment into the port. On February 27, 2023, the port welcomed

APPRENTICESHIP ACT OVERHAUL FOR SCHOOL LEAVER SKILLS BOOST

FROM PAGE B1

very old. We’re putting all the operational stuff in it. We’re not there, but we’re moving forward and it will be nothing but good news.

“We’re trying to get people to come out of school not only with skills, but if we can give them skills and get them certified that will be the biggest thing. We can move forward and help a lot of young people that do not have jobs. We’re putting in the right framework to help people get good skills.

“It’s not going to be your 52-week job programme. It’s going to be a properly-certified training programme where you go to school and do work on the job. We haven’t finished it, but that’s the framework we’re looking at. It’s what we need to do.”

Apprenticeship initiatives are nothing new in The Bahamas. The Government previously partnered with the Inter-American Development Bank (IDB) on a $50m ‘Skills for Current and Future Jobs in the Bahamas’ project, although the funds were ultimately used to provide employment support during the COVID-19 pandemic.

This, though, in its original form, saw apprenticeship, with its emphasis on ‘on-the-job’ training, as key to young

and unemployed Bahamians acquiring the skills and necessary experience that will endear them to employers, and enable them to find sustainable employment.

However, the IDB readily agreed that the Apprenticeship Act must be upgraded. It said then:

“The Apprenticeship Act of the Bahamas, which is the legal framework to regulate apprenticeships nationally, came into effect on January 1, 1983. Any new programme needs to be underpinned by an amended version of the Apprenticeship Act.

“The Government has expressed that initial work for the Apprenticeship Programme can be started via an MOU, while an amended version of the Act is approved. This is a condition prior to first disbursement.”

The initiative was targeted at 1,350 persons, who were to be trained over a 12-month period, with some 80 per cent of the learning ‘on-the-job’. The three sectors targeted for the apprenticeship initiative were the maritime, medical and information technology/communications industries on the grounds that they would be exhibiting the fastest growth in the immediate future.

“These sectors were selected

their

expected expansion through new investments, and therefore high potential for growth, and considerations for implementation of the apprenticeship programme in the Family Islands,” the IDB said at the time.

“The maritime, and IT and telecommunication sector, currently, the ‘Transport, Storage and Communications’ industry within which these two sectors are included, account

for approximately 10 per cent of employment in the Bahamas. This share, however, is expected to grow substantially over the new few years. In terms of the maritime and medical services sectors, important new investments are being made in Freeport in the island of Grand Bahama.”

The IDB added that tourism, construction and financial services were not included, even though they

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000

PAPEX EXPORTERS LIMITED (IN VOLUNTARY LIQUIDATION)

NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, PAPEX EXPORTERS LIMITED is in dissolution.

The dissolution of the said Company commenced on 23 March 2023 when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.

The sole liquidator of the said Company is L. Michael Dean of Equity Trust House, Caves Village, West Bay Street, P O Box N 10697, Nassau, Bahamas.

L. Michael Dean Sole Liquidator

record of 28,554 passengers in a single day.

“During the nine-month period, we continued to invest in the transformation of Nassau Cruise Port, and as Global Ports Holding’s investment into the port nears completion, the vision for this port is becoming a reality. Global Ports Holding’s management believes this port will stand as a testament to Global Ports Holding’s cruise port and destination development capabilities, and as a global blueprint for future cruise port investment.”

Mr Maura yesterday told Tribune Business: “I would say that what makes our project different from most marine infrastructure projects is that, while ours most definitely has a port marine infrastructure component, it’s very much a project about the improvement of landside infrastructure and the value proposition of the destination.

“That can be seen in the 62 retail and food and beverage spaces built into our project along with the

accounted for almost 50 per cent of Bahamian gross domestic product (GDP), “to contribute to the diversification of the Bahamian economy and to avoid duplication of existing efforts”.

And, in a negative sign for the Bahamas’ financial services industry, the

He has pleaded not guilty to charges that he cheated investors out of billions of dollars before his business collapsed. An arraignment on the rewritten indictment was set for Thursday by US district judge, Lewis A. Kaplan. He also on Tuesday banned Bankman-Fried from communicating with current or former employees of FTX or Alameda Research. The order also limits Bankman-Fried to one laptop and phone and bans him from other cellphones, computers or “smart” devices with Internet access. Bankman-Fried’s lawyers did not immediately respond to messages seeking comment. Messages for comment were also sent to the Chinese consulate in New York and the Chinese embassy in Washington D.C.

it’s much, much better. The majority of items and supplies have gotten back to normal, and freight is back from the level of insanity.

“Inland freight in the US is still a bit of an issue if you are not somewhere in close proximity to a port, and if you’re getting something from deep in state then that can be a little tricky.”

Junkanoo Museum, along with the amphitheatre, and along with the expansion that comes from this project. We are so much more than a cruise port operation and marine infrastructure developer. We are a community partner in that we are literally improving the destination of downtown Nassau.”

Global Ports Holding added: “Growth in the number of ships and the size of ships means that many cruise ports will need to invest in their infrastructure in order to be able to accommodate the new larger ships. There is no better example of this type of investment than Global Ports Holding’s significant investments into Antigua Cruise Port and Nassau Cruise Port.

“Despite the impact of the COVID-19 pandemic on Global Ports Holding and the cruise industry, our investment to increase the capacity of these ports and transform the passenger experience has largely continued as planned over the last two years. This demonstrates the commitment of Global Ports Holding and our partners to our ports and destinations.”

IDB said: “The financial services industry was not included due to the fact that employment generation in this industry has seen a decrease over the last few years, presumably leading to decreased demand for apprenticeship places.”

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Cable Beach developer urged: ‘Pay homage’ to Viking Court

considerations. The documents reveal that Viking Court was acquired for $650,000 on April 18, 2019, by an entity called PAS Pharmaceuticals from the vendor, International Management and Investment Services.

Signing the conveyance on behalf of PAS Pharmaceuticals was Stephon Flowers, the late founder and chief executive of Friendly Pharmacy and Progressive Pharmaceuticals, and also a former president of the Bahamas Pharmacy Association. Friendly Pharmacy has three locations - at Cable Beach on West Bay Street, Old Fort Bay Town Centre and in Solomon’s SuperCentre across from the Mall at Marathon.

The plans filed with the Department of Physical Planning show a pharmacy as the anchor retail tenant in the proposed Viking’s Court Plaza. However, Jehan Wallace, the

department’s chief physical planner, in a March 14, 2023, letter to TDG Architects, while apologising for “the inordinate delay” in responding to a December 7, 2022, application, said the Town Planning Committee had “deferred” its decision on whether to approve the project.

This was to enable a public hearing to take place so that the planning authorities could obtain the views of nearby residents, with the event presently scheduled for April 13, 2023. Mr Wallace, in a briefing note to the Town Planning Committee, said the developer wanted to re-zone lots 12-17 in Westward Villas subdivision from multi-family residential to commercial.

“The site is located on the corner of West Bay Street and Cambridge Avenue, west of the Quality Food store. There is a single family home with its accessory buildings on the site. The applicant proposed a re-zoning of all

lots to commercial in order to construct a commercial plaza and a condominium building on the site,” he explained.

“The proposed commercial building will consist of two floors of retail on the ground floor and office spaces on the second floor. The commercial building is approximately 41,000 square feet. This building faces West Bay Street with

access from that street as well as Cambridge Avenue. Seventy-six parking spaces are proposed for the building.

“The proposed condominium building will consist of ten units in a two-storey building. This building is approximately 11,416 square feet with 24 parking spaces. The building is placed behind the proposed

commercial building facing Hampshire Street. Use along West Bay Street consist of a mix of commercial, multi-family and touristic developments.”

Mr Wallace said that while the Department of Physical Planning “has no objections to the mix and strategic placement of the uses on the site”, it recommended deferring any approvals until after a public hearing as this would be “in keeping with precedent regarding developments that will result in significant changes to the neighbourhood” as well as ensure all views and concerns were aired.

Mr Laing, in the original December 7, 2022, application, said the commercial plaza would have ten retail units on the ground floor, with the most central combining two spaces, and nine offices upstairs. There are to be three anchor units, and the total retail area would be 23,457 square

Chamber chief: ‘Spare no effort’ on Ginn resolution

small businesses in Grand Bahama becomes critical to ongoing progress.

“I believe there are some projects in the works that have not been announced yet. I expect in the next couple of months to hear about some things coming to Grand Bahama. Personally I like to see concrete poured. There’s a history of signs going up, dirt turned, but we need some oomph in Grand Bahama. It just needs a break.”

Tribune Business revealed earlier this week how Kingwood, the rejected Ginn buyer, last week agreed to pay $325,000 in sanctions to settle COVID fraud allegations after it was accused by the US Justice Department of “knowingly providing false information” to secure pandemic-related financial assistance via a scheme involving “ghost” employees that was designed to “personally benefit” its principals.

The disclosures, and related fines and penalties, provide further justification

for the Davis administration’s repeated rejections of Kingwood as a suitable purchaser for such a large and potentially valuable tract of resort development real estate. This newspaper revealed in July 2022 that Kingwood and its principals had been turned down by the Davis administration, yet subsequent information suggested the group was not dissuaded and made a second, fresh bid.

And last week’s confirmation of their rejection may still not be the end of the Kingwood saga. For Tribune Business has obtained documents revealing that, in August 2022, Ginn’s former financing partner attempted to conclude the project’s sale to Kingwood offshore and outside The Bahamas.

The papers reveal that executives from Lubert Adler, the Philadelphiabased investment bank that provided West End’s seed capital, and which took over the development after original developer, Bobby Ginn and his Ginn Clubs & Resorts, defaulted on their

NOTICE

NOTICE is hereby given that CHEILAIR SAINTILIEN of Bahama Coral Island, Abaco, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that KENLY EXANTUS, of Harbour Island, Eleuthera, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of March 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

loan repayments in 2011, resigned en masse from their positions as officers and directors with a variety of project companies on August 3, 2022.

Those departing included Ira Lubert and Dan Adler, Lubert Adler’s principals, plus Amanda ‘Amy’ Wilde, who for more than a decade had served as Lubert Adler’s ‘point person’ in trying to secure a new buyer/investor. They were replaced on three separate corporate Boards by Richard Nasser and Anthony Carll, respectively Kingwood’s resort division president and general manager of its Reunion resort in Orlando, Florida.

Messrs Nasser and Carll, together with Kingwood’s ultimate chief and owner, Farbod ‘Fred’ Zohouri, are all named personally as defendants in the original US Department of Justice lawsuit that was finally unsealed last week to coincide with the settlement agreement.

However, the documents obtained by Tribune Business show that Messrs

Nasser and Carll are now president and vice-president/secretary, respectively, of LRA-OBB Ltd, which stands for (Lubert-AdlerOld Bahama Bay), the entity which owns the common areas around the Old Bahama Bay resort’s condominiums, pool, beach, marina, shops, restaurants, undeveloped golf course, and much of the land previously controlled by Ginn.

Mr Zohouri’s signature appears on the documents affirming the officers and directors change in his capacity as head of Reunion Cay Island Resort Ltd, a Delaware-based company said to be the manager of LRA-OBB LLC, a Georgia company that is described as the sole shareholder of its Bahamian equivalent.

And, by virtue of LRAOBB being the sole shareholder, the Kingwood group’s control of that company also enabled it to appoint Messrs Nasser and Carll as president and vice-president/secretary of Grand Bahama Resort Utility Services and Sur Mer Club Ltd. The former

NOTICE

NOTICE is hereby given that JODLEN GARCON of Jennie Street, Balfour Avenue, New Providence, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 29th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that VODLEELY ELFRAT, of General Delivery, Palmetto Point, Eleuthera, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of March 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that LANCE FRANCIS, of #52 West Street, Nassau, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of March 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

provides all utility services to the ex-Ginn project, while the latter is a hospitality services vehicle that collects maintenance fees and holds the common area, beach club and services operations.

The appointments of the Kingwood executives took place on August 4, 2022, just one day after the resignations of the Lubert Adler executives who they replaced. Tribune Business sources have confirmed that Kingwood, and Messrs Nasser and Carll, remain in these posts today, and have voiced fears that the situation threatens to create an

feet, and that for the offices some 17,943 square feet. The building’s height will be 28 feet, with a 28 feet minimum setback from the condominium building. The condo building, meanwhile, would have five units on the ground floor and five on the upper floor.

“The goal was to isolate all commercial activity to the primary streets (West Bay/ North Cambridge Avenue) similar to what has been done and exists at almost every other junction in Cable Beach,” Mr Laing wrote. “Social House/ Starbucks/Palm Tree/700/ Capriccio/Wendys/Marco’s/ Swiss Pastry/Island Luck/ Hoffers Plaza/BTC/Meze Grill/Sbarro etc.

“At the same time, with a two-storey condominium block we seek to create a visual and sound buffer and maintain the urban language, use and privacy to the residentially-zoned Hampshire Street.”

impasse, or quagmire, that will prevent any resolution at West End in the form of fresh investment and a new buyer.

For while Kingwood cannot move forward in the absence of government approvals, it is seemingly not going anywhere and remains in control of corporate entities critical to progress at the 2,012-acre site. As a result, the concern is that no other viable investor will dare look at acquiring the Ginn projectand seek to realise its initial vision - until Mr Zohouri and his colleagues have finally departed.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, EDMOND PATRICK MICAH OBRIEN of P.O Box SB 51505 Kisskadee Drive Tropical Gardens, New Providence, The Bahamas, Father of RAMIYAH GABRIELLE CYNTHIA FULLERTON A minor intend to change my child’s name to RAMIYAH GABRIELLE CYNTHIA OBRIEN. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that NORILUS SAINT JULIEN of Minnie Street, New Providence, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that NICA NIKICA JULIEN, of Hudson Estates, Allenby Lane, Freeport, Grand Bahama applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of March 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that ASHPHIN CAMPBELL of P. O. Box CP-60076, New Providence, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Judge bids to protect $2.3m for City Markets pensioners

imposed on August 17, 2020, to preserve the purchase price paid by AML Foods for the 6.52 acre site that also included warehouse facilities. The transaction has not closed because of a dispute as to whether the trustees were able to convey good title to the BISX-listed food retail and franchise group.

Mr Williams, a former Bahamas Electrical Workers Union (BEWU) president who is now an attorney, and Ms McKenzie “maintain that there is no evidence of any attempts” by themselves “to dissipate any assets or that they are likely to do so... It would be futile to think that funds received as payment for work done as trustees would still be in their account”.

The injunction’s removal, though, was opposed by representatives for the City Markets pensioners, first Whanslaw Turnquest, and then Glen Adderley. Asserting that the former City Markets headquarters building was held in trust by the trustees for the pensioners’ benefit, they alleged they - and the Supreme Court - only became aware of the sale some six months after the proceeds were received and while legal proceedings were ongoing.

Of the $3m gross sum, some $2.288m was paid to the trustees’ attorney, Roger Minnis of Minnis & Co, together with the $150,000 deposit, on September 21, 2016. The $562,242 balance was retained by AML Foods and its attorneys, C. F. Butler & Associates, to cover outstanding real property taxes and Bahamas Power & Light (BPL) bills owed on the headquarters property.

The pensioners’ representatives, as noted by Justice Stewart, are alleging that Mr Williams and Ms McKenzie “have

committed breaches of trust and fiduciary duties” over the building’s sale and that the duo “are dissipating the trust funds and that they wish to continue to spend trust funds” that should be used to pay the City Markets beneficiaries what they are owed.

They were joined in their opposition to the injunction’s discharge by both AML Foods and other parties involved in the City Markets pension fund quagmire. The latter included BSL Retirement Plan Ltd and ABDAB Properties Ltd, with ABDAB standing for Associated Bahamian Distillers and Brewers. Both entities are linked to Mark Finlayson and his family, whose TransIsland Traders vehicle was City Markets’ last ill-fated majority owner before the firm collapsed.

BSL Retirement Plan, in particular, argued that the injunction should remain because neither Mr Williams nor Ms McKenzie was named as a trustee for the East-West Highway property. Instead, it alleged that they were appointed to hold ABDAB preference shares “in order to conclude an agreement for sale” signed by their predecessors and “to hold a revisionary right in 70 percent of the shares in Trinity Ltd”. This relates to a series of transactions where the Finlayson family exchanged the City Markets pension plan’s interest in the former company head office - its main asset - for preference shares in ABDAB. The back parking lot and delivery area were also split off from the front buildings and allegedly sold to an ABDAB subsidiary.

In return, the City Markets pension fund was to gain shares worth $600,000 in a company called Trinity Ltd, which acted as a holding vehicle for ABDAB’s equity interest in the Trinity Plaza shopping centre

Alibaba to split itself into 6 business groups

By MICHELLE CHAPMAN AP Business Writer

ALIBABA is splitting itself into into six business groups as the Chinese e-commerce company attempts to become more nimble in reacting to changes in the market and increase the value of those units.

U.S.-listed shares of Alibaba Group Holding Ltd. jumped 14% to close at $98.40.

Alibaba Group said in a regulatory filing Tuesday that the six new groups will be made up of the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.

The company said that each group will be able to raise outside capital and potentially seek its own initial public offering, except for Taobao Tmall Business Group, which will stay wholly-owned by Alibaba. Each group will be independently managed by its own CEO and board of directors.

The Cloud Intelligence Group includes cloud, AI and DingTalk. The Taobao Tmall Business Group includes Taobao, Tmall, Taobao Deals, Taocaicai and 1688.com. The Local Services Group includes Amap and Ele.me, while the Global Digital Business Group (including Lazada, AliExpress, Trendyol, Daraz and Alibaba.com.

The Digital Media and Entertainment Group

on West Bay Street. AML Foods, meanwhile, wants the Supreme Court to determine if it has valid title to the former City Markets headquarters building via a 2017 conveyance, and if not, to order that its purchase price payment be returned.

Justice Stewart, in her verdict, noted that of the $2.288m received by the City Markets pension plan trustees, some $732,065 had been paid into court upon the order of Supreme Court deputy registrar, Camille Darville-Gomez, on February 5, 2018.

“Allegations have been made that a substantial portion of the purchase money has been distributed by the first defendants [the trustees] to third parties,” the judge noted. “On the facts of this case, there is already evidence that some of the purchase money has been

distributed to third parties. This fact strengthens the reason for maintaining the injunction....

“The first defendants have paid out over $1.706m of the purchase monies as averred in the affidavit of Rosalie McKenzie.” Mr Williams had also complained that the injunction had impacted his ability to conduct business as an attorney because his Scotiabank (Bahamas) account had also been frozen.

“He admits that he and his wife are experiencing financial difficulties because of the freezing of their account,” Justice Stewart wrote. “In his second affidavit, he avers that the first defendants would suffer loss which could not be compensated in damages, and he also avers that he would suffer prejudice which would outweigh any

prejudice experienced by any other party. “He avers that the prejudice would be irremediable as it impacts his reputation, loss of income and ease of doing business. He does not provide any evidence of any risk to his reputation, or loss of income or difficulty in conducting his business.” Justice Stewart, though, found that the potential “prejudice” to the City Markets pensioners was “readily apparent” and cuts both ways. If the sale to AML Foods is found invalid, they will have to reimburse the BISX-listed food group’s purchase price. And, if it is upheld, the “disbursement” and dissipation of the sales proceeds will further reduce recovery of their retirement income and long-term savings. Justice Stewart found: “The fact is that the monies

have left the control of the trustees, and should a decision be made that they be returned to [AML Foods] there will be challenges recovering these monies.”

Both Mr Williams and Ms McKenzie has confirmed there were no assets other than the purchase price paid by AML Foods with which to refund the BISXlisted food group if the sale is deemed invalid. “If the injunction is discharged, there is no guarantee that there will be any funds available to repay the plaintiff,” Justice Stewart said. “In fact, the evidence produced questions their [the trustees] means to pay any damages.” Justice Stewart called on all parties to move the matter to full trial “without further delay” so as to prevent any more financial loss.

includes Youku and Alibaba Pictures.

Alibaba has faced increased competition from short-video platforms such as Douyin and Kuaishou which also offer e-commerce services on their platforms. Its U.S.-listed stock has also been on the decline since a regulatory crackdown on the technology industry in November 2020 that saw regulators halt the IPO of its financial arm Ant Group and crack down on anticompetitive practices across the technology industry.

On Monday Alibaba founder Jack Ma resurfaced in China after months of overseas travel. Ma founded Alibaba in the 1990s and was once China's richest man. He has kept a low profile with few public appearances since Nov. 2020, when he had publicly criticized China's regulators and financial systems during a speech in Shanghai.

The Chinese government has been seeking to raise confidence in the private sector after regulatory crackdowns, on technology, education, online gaming and financial companies, and harsh COVID-19 restrictions slowed the economy.

Ma stepped down as Alibaba chairman in 2019, saying he hoped to focus on philanthropy. In January, he ceded control of Ant, the financial technology firm, amid a revamp of its shareholding structure.

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DEAL TO BUY SILICON VALLEY BANK CALMS BANK FEARS, FOR NOW

By STAN CHOE AP Business Writer

FIRST Citizens Bank is buying much of Silicon Valley Bank, the tech-focused financial institution whose failure this month set off a chain reaction that helped rattle faith in banks around the world.

The Federal Deposit Insurance Corp. and other regulators had already taken extraordinary steps to head off a wider crisis by guaranteeing all depositors in SVB and another failed institution, Signature Bank, could get their money, even if they had more than the $250,000 limit insured by the FDIC.

The First Citizens deal announced late Sunday, at least initially, seemed to achieve what regulators have sought: a shoring up of trust in other regional banks across the country.

Stock prices strengthened for First Republic, PacWest Bancorp. and other banks that investors have spotlighted as most at risk for a sudden exodus of nervous customers, similar to the run that caused Silicon Valley Bank's failure.

The sale underscores that Silicon Valley Bank's assets do have value and helps to rebuild some faith in the banking sector, investors and experts said. But they also said it doesn't by itself provide an immediate

all-clear for other banks following the second- and third-largest U.S. failures in history. Restoring trust and figuring out exactly what pain other banks may ultimately feel will take more time.

"The financial system is like a boat," said Aaron Klein, a senior fellow at the Brookings Institution and a former official at the Treasury Department. "SVB's collapse has rocked the boat, but the ship is righting itself."

"The news today is good, it's a positive step forward to digging out of the hole of the collapse that SVB put us in," he said. "But losses are substantial: $20 billion is real money, even in Washington."

That $20 billion is referring to the loss the FDIC says its deposit insurance fund could take because of Silicon Valley Bank's failure. As part of the deal with First Citizens, the FDIC agreed to share in potential losses or gains coming out of some of the loans purchased from Silicon Valley Bank.

The $20 billion wouldn't come from taxpayers. It would instead come from an FDIC fund that banks pay into. But banks could ultimately charge slightly more in fees or pay less in interest to their customers to help make up for it, Klein said.

"The question is who should bear those losses?" he said. "Should seniors get a few less interest points on their bank deposits, or should" big depositors with more than $250,000 at Silicon Valley Bank be willing to lose some of their cash?

First Citizens agreed to buy about $72 billion of Silicon Valley Bank's assets at a discount of $16.5 billion. About $90 billion in assets remain in FDIC's receivership. The FDIC also received rights related to First Citizen BancShares stock that could be worth up to $500 million.

Since the banking crisis began in mid-March, officials from the Treasury Department to the Federal Reserve have said they still see the system as sound and secure.

Todd Phillips, a fellow at the Roosevelt Institute and a former attorney at the FDIC, said extraordinary actions by regulators back up those statements. Besides guaranteeing deposits at Silicon Valley Bank and Signature Bank, regulators also announced a program to allow other banks to raise cash more easily. That has the overall banking system on more stable footing in his mind, even if investors are sending some bank stocks on wild runs.

"What D.C. is thinking and what New York is

Asian stocks mixed as anxiety over banks starts to fade

thinking about everything that's going on is very different," Phillips said. "New York appears to be very concerned that there are more banks that may fail and that shareholders will be wiped out, whereas D.C. is much more concerned about the health and safety of the financial system."

He said his general message to people is: "Your deposits will be fine. You will be fine. This really is a crisis of large institutional shareholders of banks that are worried" about losing their money.

Phillips said the next big step will be to see if Congress does anything to broaden deposit protections for customers at banks.

Amanda Agati, chief investment officer of PNC Asset Management Group, looks at the banking industry's struggles through the eyes of an investor, and she sees more pain coming. She just doesn't know exactly how much and from where.

By JOE MCDONALD AP Business Writer

ASIAN stocks were mixed Wednesday as anxiety about the global financial system began to fade following three highprofile bank failures. Shanghai followed Wall Street lower. Tokyo and

Interest rates have leaped over the last year as the Fed tries to get high inflation under control, and that's squeezing the system and causing weak links to crack.

"It's highlighting increased stress in the system," she said, and it could lead banks to lend less, which would put more pressure on the economy.

The Federal Reserve just raised interest rates again last week, and Agati said what it does going forward will likely have a greater impact on markets and the economy than which bank could be next to see its stock drop. As for the First CitizensSilicon Valley Bank deal, she said: "I don't think it moves the needle at all in terms of the market overall."

Silicon Valley Bank, based in Santa Clara, California, collapsed March 10 in a bank run after customers rushed to withdraw money due to fears over the bank's solvency. It was

Hong Kong advanced. Oil prices gained.

Fears that the global banking system might be cracking under the strain of rapid interest rate hikes temporarily pushed aside unease about slowing economic growth. Some calm has returned after regulators announced measures to shore up the system.

"Clearly, investors have not completely lost their anxiety," said Robert Carnell and Min Joo Kang of ING in a report.

The Shanghai Composite Index lost less than 0.1% to 3,243.19 while the Nikkei 225 in Tokyo gained 0.4% to 27,625.99. The Hang Seng in Hong Kong jumped 2.2% to 20,225.65.

The Kospi in Seoul shed 0.2% to 2,430.74 while Sydney's S&P-ASX 200 advanced 0.2% to 7,046.80.

New Zealand declined while Southeast Asian markets rose.

On Wall Street, the benchmark S&P 500 index dipped 0.2% to 3,971.27.

Most stocks in the index gained, but that was offset by big declines for some banks and modest losses for tech shares. First Republic fell 2.3%, while PacWest Bancorp. was down 5%. Apple and Microsoft declined.

The Dow Jones Industrial Average slipped 0.1% to 3,394.25. The Nasdaq composite lost 0.4% to 11,716.08.

The failure of two U.S. banks and one in Switzerland creates a dilemma for central bankers who are trying to cool economic activity and bring down inflation that is near multidecade highs.

the second-largest bank collapse in U.S. history after the 2008 failure of Washington Mutual. Two days later, New York's Signature Bank was seized by regulators in the third-largest bank failure in the U.S. Customers of Silicon Valley Bank will automatically become customers of First Citizens, which is headquartered in Raleigh, North Carolina. The 17 former branches of SVB will open as First Citizens branches Monday, the FDIC said.

New York Community Bank agreed to buy a significant chunk of Signature Bank in a $2.7 billion deal a week ago, but the search for a buyer for SVB took longer.

First Citizens Bank, which was founded in 1898, saw its shares surge following the deal's announcement. They were up a little more than 55% in late-day trading.

The Federal Reserve and central banks in Europe and Asia usually would respond by hiking rates again. But the bank failures showed institutions are vulnerable after earlier hikes caused prices of bonds and other assets on their books to fall.

Traders placed bets Tuesday that the Fed will raise rates at its next meeting in May, though the slight majority is still calling for it to hold rates steady. Traders are still largely betting the Fed will have to cut rates as soon as this summer to prop up the economy.

Reports on the U.S. economy have been coming in mixed. The job market remains remarkably solid, while smaller corners of the economy have been showing more weakness.

A report Tuesday showed consumer confidence is strengthening, contrary to expectations.

Another report suggested U.S. home prices softened in January from December, but not as much as economists expected.

In energy markets, benchmark U.S. crude advanced 37 cents to $73.57 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 39 cents on Tuesday to $73.20. Brent crude, the price basis for international oil trading, added 14 cents to $78.28 per barrel in London. It gained 53 cents the previous session to $78.65.

The dollar gained to 131.72 yen from Tuesday's 130.80 yen. The euro declined to $1.0836 from $1.0842.

A FIRST Citizens Bank sign is seen in Durham, North Carolina, on Monday March 27, 2023. North Carolina-based First Citizens will buy Silicon Valley Bank, the tech industry-focused financial institution that collapsed earlier this month.

Photo:Jonathan Drew/AP

A CURRENCY trader watches monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won, center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, March 29, 2023. Asian stocks were mixed Wednesday as anxiety about the global financial system began to fade following three high-profile bank failures.

Photo:Ahn Young-joon/AP

French police counter protest violence; garbage strike ends

By NICOLAS GARRIGA

AND JOHN LEICESTER Associated Press

BOLSTERED French police forces clashed with demonstrators in numerous cities Tuesday as hundred of thousands of marchers protested President Emmanuel Macron’s unpopular retirement reform.

Security was ramped up for the 10th round of protest marches since January after the government warned that some demonstrators intended “to destroy, to injure and to kill.”

The Interior Ministry put the number of demonstrators nationwide at 740,000, down from more than 1 million five days ago when protesters voiced their rage at Macron’s order to ram the bill raising France’s legal retirement age from 62 to 64 through parliament without a vote.

The Paris police counted 93,000 in Paris compared with 119,000 last Thursday,

when violence reached a peak.

In a bid to keep up pressure on the government to simply withdraw its retirement measure, unions organizing the protests called for new strikes and marches on April 6.

In a sign that protests may be losing a little steam, sanitation workers in Paris announced that they are suspending their more than three-week-long strike that has left piles of stinking garbage uncollected on the capital’s streets. Growing piles of rotting garbage in the French capital became a symbol of the larger protests.

The CGT union, which organized the strikes, said in a statement that workers will return to their jobs Wednesday. It was unclear whether private companies responsible for keeping some Paris districts clean will return to work.

Concerns that violence could mar the demonstrations prompted what

Interior Minister Gérald Darmanin described as an unprecedented deployment of 13,000 officers, nearly half of them concentrated in the French capital.

A group of security forces in Paris at one point withdrew behind the wooden doors of a residential building during hours-long standoffs against ultra-leftist militants attacking with various projectiles and fireworks. A fire raged outside the door.

After months of upheaval, an exit from the firestorm of protest triggered by Macron ‘s changes to France’s retirement system looked as far away as ever. Despite fresh union pleas that the government pause its hotly contested push to raise France’s legal retirement age, Macron seemingly remained wedded to it.

His order to use a special constitutional power to ram the reform past legislators without allowing them

a vote galvanized the protest movement. The Eiffel Tower’s website announced that strikers had closed down the worldfamous tourist attraction. The Louvre Museum was similarly strike-bound Monday.

“I’m protesting because this reform is deeply unfair to workers, women, and young people,” said Camille Sabatier, 19, a political science student at the Sorbonne.

“It’s no longer acceptable that a powerful man could force such a bill without a vote by parliament,” she said.

“Everybody is getting madder,” said Clément Saild, a train passenger at Paris’ Gare de Lyon railway station, where tracks were temporarily invaded and blocked Tuesday by protesting workers. He said he supports the strikes despite their impact on transportation and other services.

“I am 26, and I wonder if I will ever retire,” he said.

Macron’s argues that France’s pension system will dive into deficit without reform, because of the lower birth rates and longer life expectancy in many richer nations. Macron’s opponents say additional funding for pensions could come from other sources, without having to make workers retire later.

Demonstrations got underway peacefully Tuesday morning, with large crowds in multiple cities. But tensions rose as marches concluded in Paris, Lyon, Nantes, Bordeaux and elsewhere.

Police were hit with objects and responded with

THE WEATHER REPORT

tear gas to disperse demonstrators in the western city of Nantes. In the center of Lyon, in the southeast, there were numerous confrontations between demonstrators and police as the protest wound down. The interior minister had said more than 1,000 “radical” troublemakers, some from overseas, could latch on to marches in Paris and other cities.

“They come to destroy, to injure and to kill police officers and gendarmes. Their goals have nothing to do with the pension reform. Their goals are to destabilize our republican institutions and bring blood and fire down on France,” the minister said Monday.

A MAN jogs past uncollected garbage bags Tuesday, March 28, 2023 in Paris. A new round of strikes and demonstrations is planned against the unpopular pension reforms that, most notably, push the legal retirement age from 62 to 64.

Photo:Thomas Padilla/AP