06222016 business

Page 1

WEDNESDAY, JUNE 22, 2016

business@tribunemedia.net

Super Value off target ‘no matter what we do’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Missing 5% sales growth by 2-2.5% pts

SUPER Value’s owner yesterday blamed the struggling Bahamian economy for its failure to hit a 5 per cent sales growth target “no matter how hard we try”. Rupert Roberts told Tribune Business that the supermarket chain was “not realising our projected goals”, and was around 2-2.5 percentage points behind target year-to-date. Anticipating the traditional summer slowdown, as residents went on vacation and stopover tourist arrivals reduced, Mr Roberts said the 10-store chain, and its three Quality Supermarkets stores, had benefited from a 37 per cent drop in energy

Blames economy, but aided by 37% energy cost fall Roberts brands new BPL manager ‘Power Unsure’ costs. This, though, was now being offset by Bahamas Power & Light’s (BPL) supply reliability issues, which were knocking out and burning through electrical equipment in the company’s

RUPERT ROBERTS warehouse and stores. Branding BPL’s new manager as ‘Power Unsure’, a play on PowerSecure, Mr Roberts expressed disappointment in its performance to-date, adding that he thought load shedding

was “a thing of the past.” “The economy’s slow and it’s going to probably be a slow summer,” the Super Value president told Tribune Business. “We don’t see anything on the horizon to hang our hats on to say there may be some better days ahead. “I think the economy will slow more and more as we get into the summer. That’s an annual thing. We’re not realising our projected goals, and are falling a little behind.” Mr Roberts said that Super Value was fortunate in that food and drink, its core business, was an essential or ‘necessity’ commodity, adding that smaller food stores were feeling the moribund economy’s impact more. See PG B2

Opposition slams $20m BPL to raise $100m mortgage relief ‘farce’ in fiscal 2017-2018 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net OPPOSITION politicians yesterday slammed the latest Mortgage Relief Plan (MRP)as “a farce”, and questioned why the Bahamian people were giving the banks a $20 million subsidy for activities they already financed themselves. K P Turnquest, the FNM’s deputy leader, told Tribune Business that the second version of the scheme appeared designed to enable the Christie administration to “take credit for what the banks already do”. Questioning why the Government was giving Bahamas-based commercial banks, some of the wealthiest businesses in this nation, a $20 million ‘asset recovery’ subsidy from the taxpayer, Mr Turnquest said the ‘new MRP’ failed to address the “root causes” of the mortgage crisis. Mr Turnquest’s assessment was backed by Branville McCartney, the Democratic National Alliance’s (DNA) leader, who said the $20 million allocated by the Government was tantamount to a subsidy of commercial bank credit collections departments. See PG B4

Say taxpayer subsidising banks’ existing activities Not all commercial banks signed up to plan But RBC appoints Mortgage Relief Plan manager

KP TURNQUEST

Mortgage plan failing to tackle ‘root cause’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s revised Mortgage Relief Plan (MRP) fails to “address the underlying structural causes” of the crisis, Opposition politicians charged yesterday, urging it to instead focus on “big ideas”. K P Turnquest, the FNM’s deputy leader, told Tribune Business that the Christie administration needed to direct its energies to examining interest rate spreads and the Bahamian Prime Rate, plus consumer protection legislation. He argued that the moribund economy and a near15 per cent unemployment rate, coupled with high borrowing (interest rate) costs, lay at the heart of problem that has resulted in $670 million worth of Bahamian mortgages falling into arrears. Mr Turnquest was backed by Branville McCartney, the Democratic National Alliance’s (DNA) leader, who also implied that the Government’s revived MRP was a ‘band aid’ solution at best. He called on the Government to introduce legislation requiring commercial banks and other lenders to permit borrowers, who had been current for many years, to use the equity built up in their homes to refinance and retain their properties. The Government’s new MRP version has allocated $20 million, over a four-year period, to fund ‘financial inSee PG B2

Gov’t urged to focus on ‘sustainable big ideas’ FNM deputy calls for interest spread examination DNA chief wants home equity solution legislated

$4.15 $4.20 $4.21

$4.21

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net BAHAMAS Power & Light (BPL) plans to raise $100 million in new debt financing during the 2017-2018 fiscal year, it was revealed yesterday, and is working on a new tariff structure and customer debt forgiveness. Philip Davis, the Deputy Prime Minister, used his contribution to the Budget debate to hold out the prospect that much-needed improvements to BPL’s supply reliability and costs is on the way. He said 80 Mega Watts (MW) of rental generation capacity was set to be installed at BPL’s Blue Hills power station, in a bid to deal with the power outages and load shedding caused chiefly by the inability of its existing turbines to meet New Providence’s demand. And, reiterating that BPL planned to roll-out prepaid electricity meters, Mr Davis also suggested that the ‘arrears forgiveness’ initiative would result in customers having their power restored. However, without actually

Utility’s hands tied until $600m bond placed DPM pledges new tariff structure, arrears forgiven 80MW of rental generation to counter outages saying so, Mr Davis’s presentation confirmed that BPL, and its manager, PowerSecure International, effectively have their hands tied financially - and are unable to effect real improvements - until the Government refinances the $600 million in legacy debts and liabilities left behind by the Bahamas Electricity Corporation (BEC). A ‘Rate Reduction Bond’ (RRB) will be placed with a mixture of international and Bahamas-based investors to See PG B4

Govt is warned: ‘Keep hands out’ of private firms Businesses against forcing post-duty end price cuts Urge Christie Gov’t: ‘Let market forces prevail’ Competition, not intervention, the true answer By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government was yesterday urged to “let market forces prevail” and “keep its hands out” of private businesses, amid suggestions that Price Control is seeking greater powers of intervention. Rupert Roberts, SuperValue’s president, and Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said competition was the best method for keeping conCEO of Chamber of sumer prices keen Commerce Edison and affordable. Sumner. The duo were speaking out after Price Control Commission chairman, E. J. Bowe, suggested the Price Control Act will be amended to force companies to reduce product prices in line with import duty reductions and exemptions. Such a measure appears designed to ensure businesses pass reduced/eliminated taxation on to Bahamian consumers in the form of reduced prices, but many in the private sector will likely view the proposal as a further example of Government overreach. They are likely to perceive it as tantamount to unwarranted interference and intrusion into the affairs of private companies, and their freedom to determine their prices, margins, revenue and profitability. Mr Roberts told Tribune Business that his supermarket chain automatically reduced prices on products where import duties were reduced or eliminated, adding that he preferred ‘competition’ over government action to drive adjustments. “The only thing is that it should be competition, not government action,” he said. “If somebody is selling something for 50 See PG B5


PAGE 2, Wednesday, June 22, 2016

THE THE TRIBUNE TRIBUNE

‘Cheap’ is not best on renewable energy WE are so often faced with rising costs without any option other than to squeeze the budget tighter, or go without some of those nice things that make life bearable. Earlier this year, we enjoyed a global low in oil prices. Combined with the reduced need for air conditioning in the winter, that meant lower electricity bills for most Bahamians. But ‘the times, they are achangin’’, and summer is here. Our electricity bills will rise whether we like it or not. It is time to take our power back. So how can people, who have an income of less than $100,000 per annum, take control of their power, besides turning lights and unused appliances off at the switch? Well, the short answer is: “Change to solar.” There has never been a better time in history to supplement or replace your power needs. Many Bahamians recognise that by installing a PV solar power system, they can halt the impact of the

price increases for years to come. With electricity so costly – even in the middle of a global low in oil prices going solar is an investment that pays for itself many times over. The money it saves you jumps when you consider the inevitable increase in energy prices every year. When working through the process of what system is right for your household, school or business, it is important to look at how much energy you are using. This lets you determine how much electricity you need to generate in order to offset your energy costs, and hopefully even create a surplus. One way to take back control of your power is with ‘tried-and-true’ Hybrid solar systems. With Hybrid systems, you create power every day from your own solar system fitted to your roof, and then store some of that power to be used at night. In effect, this allows you to go off the grid

when you need to. There are several Hybrid solar power and energy storage systems on the market today. Some use Gel or AGM batteries, and some use lithium batteries, so you can use stored power later. Some units even enable you to use your stored power in a blackout or power outage. As demand has grown and technology developed in the past few years, battery storage prices have reduced dramatically, making energy storage especially viable and affordable now. New lithium energy storage units and energy management kits can even be fitted to an existing solar system. Similarly, you can get expandable versions, allowing you to add on more panels and storage at a later date. This lets you be prepared for future electricity rate rises. If you needed back surgery, would you prefer the best doctor or the cheapest? You would not pick

the cheapest ‘doctor’ to operate on your body, and neither should you pick the cheapest brands for your solar system. Sadly, not all systems are created equal, so it is important to pick the brands that harvest the sun’s energy most efficiently. Solar power brands range in efficiency from 5 per cent to 18 per cent. Hence, buying a cheap, low-efficiency system may result in you struggling to pay back the investment, plus having the frustration of an inadequate solar system with an ever-increasing electricity bill. Who wants that? As the saying goes: “You get what you pay for.” To take your power back, you want well-known, proven brand names with a reputation of solid after-sales service and back-up. For example, inverters are a key component in the system and should not be forgotten - they convert solar power into a usable form. The inverter is like the brain of the system, and

Super Value off target ‘no matter what we do’ From pg B1

CLIFFORD CULMER

Culmer leaves Board at Commonwealth Bank WELL-known accountant, Clifford Culmer, is stepping down from Commonwealth Bank’s Board after serving as a director for 25 years. Mr Culmer was greeted with tributes and a standing ovation at the bank’s annual general meeting (AGM) earlier this month, when his departure was announced. “Cliff has left a legacy for the rest of us to follow,” Dr Marcus Bethel said. The moving and emotional tributes from co-directors drew a spontaneous standing ovation for Mr Culmer by the packed audience of shareholders at SuperClubs Breezes. Mr. Culmer, a chartered accountant, was in his second term on the Board, which has lasted from 1998-2016.He was chairman of the audit committee. “As chairman of the audit committee, he has served on the Board in a position with one of the greatest demands, which he has done with strength, wisdom and integrity,” said William B. Sands, Jr. Commonwealth Bank’s chairman. “There is no doubt that the Audit Committee, under his leadership, has sharpened management’s skills over the years and made us a stronger bank.” Rupert Roberts Jr, a Commonwealth Bank co-director and chairman of the Board’s nominating committee, described Mr Culmer’s work as “an immeasurable contribution”. Dr Bethel said Mr Culmer’s contributions during the 32-year history of the Bahamian bank were unparalleled.

“We had a goal of a 5 per cent sales increase and we’re not getting it, and we’re not getting it,” he told Tribune Business. “No matter how hard we try, we’re not getting it. “There’s so much unemployment and consumers don’t have the money. The ones that have it are helping out other family members. “We’re off 2-2.5 percent [from target]. If we take VAT into consideration, we’d be getting a 10 per cent increase in sales if that was not there. It’s going to be a long, hot summer. It seems to be gradually slowing down.” New Providence has been plagued by energy supply woes in recent weeks, with BPL initi-

ating a rolling, two-hour loadshedding that was followed by an island-wide power outage on Friday. Mr Roberts said Super Value had “a handle on every eventuality”, with every store possessing its own generator. The larger outlets, he added, have two, while two mobile generators are kept on constant stand-by. “The common joke now is Power Unsure,” the Super Value chief told Tribune Business. “What we find happening with the power outages is that the fluctuations last week took out 40 bulbs in the warehouse, and burnt out the main AC blower/ fan in one of the stores. “I’m going to try it on with Power Unsure and bill them for it.”

Mortgage plan failing to tackle ‘root cause’ From pg B1 ducements’ to the commercial banks that - in theory - will encourage them to place as many delinquent borrowers as possible into the new scheme. Expressing scepticism that this would make a significant dent in the 4,000-plus homeowners with delinquent mortgages, Mr Turnquest said: “It doesn’t address the underlying structural problems of mortgages, which is the cost of lending and borrowing, coupled with an economy that’s been in contraction for the last two years. “To the extent that the Government gets involved, it should look at big ideas that are sustainable. Look at the Bahamian Prime rate, look at consumer protection legislation, look at the interest spreads between the cost of funding, money for the banks, versus what they are lending money at.” The Bahamas is widely viewed as having some of the widest spreads between bank

deposit rates (what they pay savers to attract funding) and mortgage, consumer and other lending rates (what they charge borrowers for lending capital). CIBC’s, in its Caribbean Market Overview for the 2016 first quarter, said Bahamian commercial bank interest spreads continue to widen, growing by 74 basis points (0.74 percentage points) in the year to end-March 2016. The average lending rate grew by 40 basis points to 12.1 per cent, while deposit rates dropped a further 34 basis points to 1.34 per cent. Mr Turnquest yesterday described the 10.76 percentage point difference as “huge”, and added: “Those who understand a bit about risk, country risk and political risk, may say there is a case for the banks to have a risk premium in developing countries. “But it cannot be so significant that there’s effectively a doubling of lending rates between what they lend at home,

it is not ‘Charmin’ ultra’; less is not more. Beware, ‘cheap’ tends to cost more in the long run, so ask for the best. Sunny boy, Enphase, Schneider and Outback inverters tend to rate the best in the long run. Bear in mind, though, that buying a PV solar power system is not the only way to reduce your energy costs. Replacing old energy sapping items such as lights and electric hot water heaters can save a lot. For example, a 150 watt light bulb can be replaced with a 15 watt LED light. Also, electric water heaters can account for up to a third of a home’s power use. Thus changing to a hybrid or solar hot water unit not only saves hundreds of dollars a year on energy costs, but can increase the benefit of the solar power system two to three-fold. By combining one of these with a good solar power system, many households can negate power bills all together. That is how to take your power back.

Joshua Key SUPERGREEN SOLUTIONS

For more information, stop by your local energy efficiency specialist’s showroom. Take an old power bill or two with you, to help better-size your system. • NB: Joshua Key is General Manager for SuperGreen Solutions Bahamas, located on Wulf Road next to FYP. SuperGreen Solutions is one of the premier advisors, suppliers and installers of domestic and commercial energy efficient solutions.

Still, as a major energy consumer, Mr Roberts said Super Value had benefited from a reduction in one of its largest two cost lines as a result of the drop in global oil prices. “I was expecting to get it down to $350,000 from $750,000 [per month], with the price of oil down and the energy-saving technology we’ve been using,” he added. “But then I’m hearing about a rate rise. That’s what we expected to get it down to. We were working with Leslie Miller [former chairman] and BEC, and hoping to get a set price for fuel, as that was what it was going to come down to. That’s quite a saving - from $750,000 to $350,000.” Super Value, like other Bahamas-based businesses and households, has reaped the benefits of lower global oil prices. Mr Roberts said that for a typical “period” in Super Val-

ue’s accounting records, energy costs had dropped from $310,000 in 2015 to $195,000 - a 37 per cent saving. Up to its “eighth period” this year, the supermarket chain has seen energy costs fall from $3.257 million to $1.967 million year-over-year - a near 40 per cent fall. “I expect the power outages but it’s the fluctuations that hurt us,” Mr Roberts said. “We’re well prepared to take care of ourselves and generate our own power, but it’s going to burn up our motors and electrical equipment and so forth. “We have $250,000 of perishables in each store. We can’t take a 10 degree fluctuation in temperature..... I was very disappointed because I thought PowerSecure had things under control, and very upset to see the load shedding return. I thought that was a thing of the past.”

and what they lend at in the Bahamas.” Mr Turnquest also warned that there was “a tremendous risk” that the revived Mortgage Relief Plan, as presently structured, created “a tremendous risk” of moral hazard entering the Bahamian housing and mortgage markets. The Government has attempted to prevent this by introducing a May 1, 2016, ‘cut-off’ as to which delinquent borrowers can qualify for the plan, but Mr Turnquest said the introduction “of government and politics” into mortgage contracts threatened to encourage more people to default in the hoping of benefiting from lower payments via the MRP. “The Government coming in and trying to be ‘Big Brother’ to everybody is introducing a new degree of risk,” the FNM deputy leader added. Still, Mr Turnquest agreed that the banks “have to take some risk and put some skin in the game” if the Bahamas is to work its way out of its mortgage crisis. “If we’re going to get through this period, it’s going to take sacrifices on all our parts,” he

added, suggesting that all parties - lenders, borrowers and the Government - may have to take a “haircut” in the short-term for long-term gain. Mr McCartney, meanwhile, told Tribune Business: “I don’t understand why the Government doesn’t make legislation that if a person has been paying their mortgage for 15 years, and defaulted in the last three to six months, that the equity they’ve gained as a result of making all those payments ought to be used prior to any foreclosure proceeding.” The DNA leader said that a borrower with a 25-30 year mortgage would have built up significant equity over the first 15 years. He argued that this would enable the mortgage to be rewritten, or restructured, in such a way that the borrower would be able to keep their home. “You ensure that persons who have gotten equity in their property as a result of payment over the years would, prior to initiating foreclosure proceedings, be able to renegotiate or refinance their loan,” Mr McCartney told Tribune Business.


THE TRIBUNE

Wednesday, June 22, 2016, PAGE 3

Construction approvals suffer $101m value fall By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net CONSTRUCTION approvals declined in value by 24 per cent or $1010.3million for the first three quarters of the 2015-2016 fiscal year, the Deputy Prime Minister said yesterday. During his contribution to the 2016-2017 Budget debate, Philip Davis, who has responsibility for the Ministry of Works and Urban De-

velopment, said data from the Building Control Division showed the continued stagnation in the construction industry. Building permit fees for that same period, however, saw an increase of 8.4 per cent over the previous year, totalling $864,207. Mr Davis said that to address challenges with the ease and timeliness of the construction approval process, the Government will introduce an electronic processing solution.

“The approval process for construction is cumbersome, labour-intensive and needlessly expensive to the customer,” he added. “Currently, a customer has to submit several copies of a plan, each to go to various agencies of Government for consideration, wasting time for circulation and money for printing. “To address these challenges, it is intended to introduce an electronic planprocessing solution that will have the capability to great-

ly impact the efficiency and security of the processing of building permit applications,” Mr Davis continued. “The software tool will have tremendous impact on improving the efficiency and access to individual file data for both the administration and the public. This, I am sure,is welcome news to all who require the services of the Building Control Division.” Mr Davis added that the long-awaited Contractors Bill has been finalised. “Just

System loss reductions save Water Corp $15m By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Water and Sewerage Corporation’s (WSC) initiative to slash non-revenue water (NRW) losses has resulted in savings of $15 million to-date, the Deputy Prime Minister said yesterday. “The NRW programme has realised a reduction in losses from nearly seven million gallons per day to less than three million gallons on per day,” Philip Davis told the House of Assembly. “Over 2.5 billion gallons have been saved to date. “This volume of water would cost $15 million to produce. With knowledge gained, WSC staff has been targeting Family Islands NRW reduction with success in various locations, but especially in Waterford, south Eleuthera, where water purchases from the desalination plant were cut

by 50 per cent, saving about $0.3 million annually.” Miya, the water efficiency solutions provider, which is a wholly-owned subsidiary of the Arison Investment Group, signed a 10-year, $83 million contract with the Water and Sewerage Corporation in 2012 to reduce the leakage from its distribution system. It was part of an $81 million loan agreement between the Water & Sewerage Corporation and the Inter-American Development Bank (IDB) in December 2011, secured by a Government guarantee, for infrastructure improvements to the water systems on New Providence. The Corporation was at the time losing close to seven million gallons of water a day, which cost it more than $16 million per year. Mr Davis continued: “The Wastewater Master Plan for New Providence is completed. The design and

bidding documents for sewerage works are prepared for tender. “As well, a $41 million loan programme has been approved by the Caribbean Development Bank to address water improvement works in the Family Islands of Cat Island, Crooked Island, Eleuthera, Long Island, San Salvador, and South Andros. “The CDB loan program mealso includes two projects in New Providence. Contracts valued at more than $4 million were awarded, and construction commenced for new water supplies in the Pinewood, Coral Lakes and Boatswain areas of New Providence,” he added. “The total investment is estimated at close to $7 million inclusive of well testing and decommissioning, and yard pipework to accommodate public supply.” Mr Davis said water quality issues continue to chal-

lenge the WSC in areas of New Providence with old cast iron pipes. “This requires continued investments to replace these pipes, along with additional water treatment enhancements to reduce corrosivity,” he added. “While we have made tremendous gains in respect of NRW, losses are still high and will require further investments in replacement of inferior plastic pipes. In this regard, the WSC will continue its reduction of NRW efforts in New Providence and Family Islands. At least another 1.5 billion gallons are expected to be saved in New Providence during the next fiscal year.” Mr Davis told Parliament that draft legislation now rests with the Attorney General’s Office to reform the sector, allowing URCA to assume responsibility for economic regulation of water, as it has with telecommunications and energy.

Sandilands hires 19 from Training Agency NINETEEN recent graduates of the National Training Agency (NTA) recently secured full-time employment at the Sandilands Rehabilitation Centre as patient care assistants (PCAs), due to a newly-formed partnership between the two organisations. For one year, Jermaine Kemp worked part-time at an elderly home as a patient care technician (PCT), hoping he would one day be able to work full-time at a larger facility. That dream has finally come true for him as one of the 19 NTA allied healthcare graduates now employed at Sandilands Rehabilitation Centre. “The healthcare industry is quite competitive, so I never thought I would get a break,” Mr Kemp said. “I decided to give it a shot and applied numerous times for a position with Sandilands, but was not invited for an interview until my resume was sent by the NTA. “I am thankful for the opportunity to finally be able to work at Sandilands, and I am extremely grateful to the NTA for opening the door.” Odisha Rolle is also a recent NTA allied healthcare graduate, and said growing

up her heart was always in the Healthcare Field. “I wanted a career that would enable me to provide a better life for my family and me,” she said. “The training I received at the NTA has been an excellent way for me to get a foot in the healthcare industry door and secure this job at Sandilands. I enjoy coming to work every day and hope to one day move up in this field.” “We are very pleased to welcome these graduates to their new role,” said Dorothy Hepburn, hospital administrator at Sandilands Rehabilitation Centre. “The training they received from the NTA makes them key additions to Sandilands Rehabilitation Centre.” The allied healthcare programme offered by the NTA consists of both classroom and clinical training, which prepares trainees to work in a hospital environment under the direct supervision of a registered nurse. Thelma McKenzie, principal nursing officer (PNO) at Sandilands Rehabilitation Centre, said the company’s newly-formed partnership with NTA plays an important role in the

healthcare field. “A patient care assistant acts as the core caregiver in providing complete clinical services 24 hours. They serve as the eyes, ears and hands of the nurses. We need and appreciate the agency for providing an organised structure for the training, because once they get here, despite needing some additional training, they have the core competencies training needed to succeed,” she said. The Public Hospital Authority’s (PHA) acting director of human resources, Ann Smith, said the NTA preparing the newest PCAs well for their role. To date, a total of 22 NTA graduates are employed at Sandilands Rehabilitation Centre. Some 1,500 Bahamians between the ages of 16 and 26 obtained skills, training and certification from the NTA over the last two years. Many of those graduates are either employed or have gained internship opportunities. The NTA provides 14week programmes that are designed to enhance workplace readiness skills for 16 to 26-year-old Bahamians

who want to increase their employability and gain real world job training skills. Registration is currently on the way for the NTA’s seventh cycle of training in New Providence, which is expected to begin in August 2016.

last week we secured a final amendment, which was advanced by the Bahamian Contractors Association,” he added. “My Ministry is assured of their support for the Bill and have advanced it for the approval of Cabinet to lay on the table of this House for debate.” The Bill, if passed, would introduce a system of licensing and self-regulation, where Bahamian contractors would be certified according to their qualifications and scale/scope of work they are capable of undertaking. It also includes provisions giving Bahamian consumers means of redress against shoddy workmanship and other frequent

complaints made about Bahamian contractors. Mr Davis said a draft of the Planning and Subdivisions Bill 2016 has also been advanced. “This Bill seeks to repeal and replace the Act that came into force in 2010,” he added. “While the new Bill has been the subject of contention for some, the same should know that the current legislation and my Ministry have been the subject of much criticism by the courts, citing non-compliance with a number of the unworkable provisions of the Act. When the new Bill is tabled and its content justified, I look forward to bipartisan acceptance.”

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PAGE 4, Wednesday, June 22, 2016

Opposition slams $20m mortgage relief ‘farce’ From pg B1 Both men were speaking after listening to comments made by Simon Wilson, the Ministry of Finance’s acting financial secretary, during a radio talk show on Monday. Mr Wilson revealed that the Government’s $20 million allocation, which is to be spread over four years, is to act as a “financial incentive” to Bahamas-based commercial banks. “The Government is providing incentives to the banks for success,” the senior Ministry of Financial official said, disclosing that payment is dependent on the banks meeting set targets, such as ‘qualifying’ at least 20 per cent of their delinquent borrowers for the MRP. Translated, Mr Wilson’s comments seem to imply that the $20 million is an ‘inducement’ or ‘sweetener’ to encourage the banks to do everything they can to find as many delinquent borrowers as possible for the scheme - and make the Government look good in the process. This effectively amounts to a ‘wealth transfer’ from the hard-pressed Bahamian taxpayer and the Public Treasury to the commercial banking industry which, although forced to take its ‘licks’ in recent years, remains among this nation’s

most profitable industries. And Tribune Business can reveal that not all members of the Clearing Banks Association (CBA) have agreed to participate in the MRP. This newspaper was asked not to print their identities, but commercial banking industry executives, speaking on condition of anonymity, confirmed that not all institutions has agreed to participate. “Not everybody has signed up, and I don’t know if everybody is on board with it,” one official said. “People are operating independently of each other. “Not all banks are going to sign up to this because it’s going to be a pain. It’s very complex, and there are too many rules. “I think it’s all political; that’s my point of view.” One institution that is ‘signed up’ is Royal Bank of Canada (RBC), which on Monday unveiled Andia Murray as its Mortgage Relief Programme manager. An internal RBC email said Ms Murray’s role would be to manage inquiries concerning borrower eligibility for the new MRP initiative. “The programme provides financial incentives that will allow banks to offer borrowers, who have some ability to pay but have fallen behind, the chance to

BPL to raise $100m in fiscal 2017-2018 From pg B1 refinance BEC’s old bank and bond debt, pension and environmental liabilities, and potential redundancy pay via a special purpose vehicle (SPV) arrangement that removes the debts from BPL’s balance sheet. Tribune Business previously revealed that the Gov-

ernment had found much more work is required than previously thought to successfully place the RRB, given BEC/BPL’s financial challenges and history as an energy monopoly that loses $20-$30 million annually. This newspaper’s contacts have suggested that a consortium of banks, fea-

LEGAL NOTICE STIRRUP INSURANCE LIMITED (In Voluntary Liquidation) Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned c/o Ronald Atkinson & Co., Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas on or before the 6th day of July 2016. In default thereof, they will be excluded from the benefit of any distribution made by the Liquidator. Dated the 22nd day of June 2016. Bennet R. Atkinson Liquidator

NOTICE IN THE ESTATE OF JULIAN OUTTEN late of Sapodilla Blvd, Pinewood Gardens on the Island of New Providence, The Bahamas, deceased. Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of said demands or claims duly certified in writing to the undersigned on or before the 30th day of July A.D., 2016, and if required, to prove such debts or claims or in default, be excluded from any distribution. After the above date the assets of the estate will be distributed having regard only to the proved debts or claims of which the Administrators shall then have notice. And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the above mentioned date. PYFROM FARRINGTON CHAMBERS Attorney for the Administrators Suite #6, Grosvenor Suites West Shirley Street Nassau Bahamas

get back on track,” the email said. Mr Turnquest, meanwhile, suggested that the latest MRP version, and the $20 million taxpayer allocation, were designed to achieve the Christie administration’s goal of delivering on a key 2012 general election campaign promise. Following the first MRP’s flop, which less than 10 delinquent borrowers assisted, as opposed to initial estimates of 1,000, the FNM deputy leader said the revised plan was structured to enable the Government “to take the credit” for what the banks are already doing. He added that the scheme, as outlined by Mr Wilson, was nothing different from the processes commercial banks already employ when seeking to renegotiate, and restructure, the mortgages of struggling homeowners. “We are now seemingly going to give the banks our hard-earned taxpayer dollars to do something they would ordinarily have done anyway,” Mr Turnquest blasted. “They [the Government] haven’t been very clear on how this money is going to be spent, and how it’s going to cause the banks to do something they don’t do already. “It begs the question: Why are the Government and Bahamian people needing to get involved in the [mortgage] relationship, providing financial contributions for them [the turing Bank of America, Credit Suisse and CIBC FirstCaribbean, heads the field of contenders to place the RRB’s international component. Some $100$150 million will likely be issued to Bahamian investors. The RRB will only be placed late in the 2016 second half at earliest, though. And until it is, BPL and PowerSecure will be unable to raise any new financing to upgrade the aged, poorly maintained and inefficient generation and transmission and distribution infrastructure they have inherited. Mr Davis reaffirmed yesterday that the RRB’s placement would reduce the $6.6 billion national debt, ultimately freeing the Government from the guarantee it has given to underwrite a previous $250 million loan to BEC. Despite BPL’s lack of a

banks] to do the moral and correct thing.” Mr Turnquest also queried “what world he’s [Mr Wilson] living in” on the assertion that very few delinquent borrowers were unable to make some kind of mortgage payment. The FNM deputy argued that in many cases, homeowners were having to choose between saving their home and putting food on the table. “The whole approach to this is trying to sell the Bahamian people that they [the Government] are doing something, but it is really nothing more than what the banks are doing on their own,” the FNM deputy leader told Tribune Business. “The $20 million seems to be some kind of inducement for the banks to give the Government credit for what the banks already do. “Why should we give our hard-earned tax dollars to the banks to recover their assets to show they’re profitable? They should have their own incentives to recover their money.” Mr Turnquest’s analysis was backed by Mr McCartney, who said: “What they’re asking, and paying, the banks to do is what the bank does in any event. “What that boils down to is the Government is going to cause the Bahamian people’s money, and even tax dollars paid by people losing their homes, to support the bank - the same entity that is kicking them out of

their homes.” Mr McCartney said that as an attorney he had dealt with all sides of the mortgage delinquency and foreclosure period. He explained that, typically, once a mortgage had been delinquent for three months, the lender sent the borrower a ‘notice period’ by way of letter. Even if attorneys had to be engaged, borrowers were not immediately put out of their homes, as more letters and negotiations had to take place as part of the process. The DNA leader said the latest MRP version, which is billed as assisting at least 1,000 delinquent homeowners, would only finance the activities of commercial bank credit and collection departments, which dealt with all these issues now. “I’m amazed he’d even say that; taking the Bahamian people’s money to pay the bank for what the bank’s paying for itself now,” Mr McCartney said of Mr Wilson. “The programme the PLP is putting forward, as outlined by Simon Wilson, is going to end up the same way as the first one in 2012: Going nowhere. “It’s a farce. It’s pathetic, and doesn’t make any sense. These guys can’t be serious. They’re using our money and, at the end of the day, the intent is all wrong.” The new Mortgage Relief Plan also appears to reward delinquent borrowers with higher debt service ratios, who will enjoy a higher

THE TRIBUNE proportionate cut to their monthly payments upon qualifying. Borrowers with a total debt service ratio below 45 per cent of income must have their monthly mortgage payments cut by “at least 20 per cent’. Yet those with debtservice ratios higher than 45 per cent of total income must have a monthly payment reduction of at least 25 per cent. While borrowers with higher debt-service ratios will likely require deeper cuts to their monthly repayments to help make them ‘current’ again, some observers will likely view this policy as ‘rewarding’ those who have been more irresponsible in their credit habits. To be eligible for the revived plan, borrowers must be more than 90 days past due as of May 1, 2016. The property must be located in the Bahamas and owner-occupied up to duplex status, and the current outstanding mortgage balance should not exceed $500,000. Borrowers’ current total debt-service ratio must be less than 75 per cent, and they have to commit to full financial disclosure, restrictions on incurring any further personal debt, and no more salary deductions. Delinquent homeowners must also go to financial counselling, and go through a six-month trial period where their mortgage payment goes beyond 30 days past due no more than once.

PHILIP ‘BRAVE’ DAVIS proven track record, Mr Davis expressed confidence that the $600 million RRB could be placed in the capital markets without a government guarantee.

“BPL is finalising its mandate with world-class banks who will take it to the market,” the Deputy Prime Minister said. “The business plan will position BPL as a fully stand-alone, self-sustainable entity. “The Rate Reduction Bond will allow BPL to start life debt free, and will further remove the $240 million guarantee from the Government’s debt burden.” A successful placement, Mr Davis said, would give BPL and PowerSecure the financial freedom to raise new capital and fund the necessary infrastructure upgrades. “BPL plans to seek an additional $100 million of debt financing in fiscal year 2017-2018 to fund subsequent phases of its plan, and anticipates that BPL will be able to realise favourable terms due to its significantly improved creditworthiness, with a target rating of at least BBB (S&P) and A (Fitch),” Mr Davis said. “BPL expects to be able to fund all other operations

and initiatives through cash flows, and meet about half of the capital expenditure from the profitability.” Mr Davis said that based on BPL’s business plan, further savings are expected “from more efficient generating assets, improved maintenance of existing assets, economic dispatch initiatives, fuel mix optimisation, more favourable fuel rates, and the divesting of BEC’s legacy debt”. He added: “Discussions are now being held to develop a new tariff structure; to avoid reductions in staff; institutionalise a system of ‘pay as you go’; and to forgive customer debts and to put lights back on.” Prepaid meters, Mr Davis said, are expected to substantially reduce bad debt expense, while providing customers with greater control over the timing and frequency of payments as well as energy usage. “PowerSecure’s generation plan for New Providence centres on improving reliability, lowering generation cost, and upgrading the transmission and distribution system, particularly to improve operations at Clifton Pier, which is much less expensive in terms of fuels and repairs,” Mr Davis said. “As BPL moves toward its objective, 80 MW of temporary rental units will be deployed to Blue Hills to meet interim needs while Clifton Pier assets are upgraded and new capacity is installed. Given the frequent and inconvenient power outages in New Providence, this is an urgent requirement.” As for the Family Islands, he added: “PowerSecure’s plan expands to replacing inefficient generators with high-efficiency generators, enhancing the capacity for emergency preparedness, and introducing solar capacity, beginning at Long Cay, Crooked Island and Salina Point, Acklins. PowerSecure plans a gradual approach to the Government’s renewable energy self-generation (RESG) initiative, with a pilot programme ahead of full devolution.”


THE TRIBUNE

Wednesday, June 22, 2016, PAGE 5

Govt is warned: ‘Keep hands out’ of private firms From pg B1 per cent less, they’re the ones who are going to sell it, and the higher-priced one is not going to sell it in this environment. “The ones that want to be competitive jump on the bandwagon, and do what E J Bowe is trying to do by legislation. I’d rather do it voluntarily than by legislation.” Mr Roberts added that the Government needed to be “careful” when contemplating the intervention

sought by Price Control, but said he did “have a problem with forcing” recalcitrant merchants to pass on the benefits of tax cuts. He disclosed that whenever import duties were reduced, Super Value typically placed its existing inventory of the impacted products on ‘special’, thereby ensuring it was rapidly cleared to make way for the new, lower-priced goods. Mr Sumner, the Chamber’s chief executive, said the private sector organisation unaware of the legisla-

tive intervention being proposed by the Price Control Commission, which threatens to further undermine investor confidence and the ‘ease of doing business’. Consumer prices have increased following ValueAdded Tax’s (VAT) implementation last year, and Mr Sumner called for a balance to be struck between business and consumer needs. “We have to let those in the retail sector, especially those in the food sector, have a chance to keep prices at reasonable levels so they can turn a profit, but also at a point where it remains affordable for the consumer,” he added. The best way to achieve this, Mr Sumner said, was to

allow market forces - especially competition between business rivals - to work, as this would keep prices keen and ensure companies operate efficiently. “It’s really a case for market forces to prevail,” he told Tribune Business. “It’s the kind of thing where we appreciate that the Government has to have some level of oversight for businesses operating in the country, and we don’t want to see companies operating in the informal economy, but we also don’t want to see the Government’s hands in private business.” Mr Sumner argued that the Government’s primary role was to provide the enabling economic environ-

ment in which Bahamian and foreign-owned businesses could flourish and provide employment, while providing regulation and oversight where necessary. “It doesn’t mean they ought to be getting involved in private businesses,” the Chamber chief reiterated. “We would want to see market forces prevail, and competition increase, and then prices will get to the place where they are more affordable and services more efficient. That’s all the price control we need.” Mr Sumner said he was unsure whether the proposed legislative changes proposed by Mr Bowe had the support of the Government, or if they were merely

something the Commission was assessing itself. “When it comes to the ease of doing business, we’ve been working very hard at the Chamber to reduce impediments to business and streamline the taxation environment for businesses to operate in,” Mr Sumner added. “Anything that threatens that work, the Chamber is not necessarily going to resist, but it’s going to have some concerns about it.” He said any expansion of Price Control’s regulatory interventions needed to be discussed between the Commission and BCCEC, with the Consumer Protection Commission also needing to be involved.

Lots of unknowns keeping the Fed cautious WASHINGTON (AP) — Federal Reserve Chair Janet Yellen said Tuesday that the U.S. economy faces numerous uncertainties from slowing job growth to stubbornly low inflation that compel the Fed to proceed cautiously in raising interest rates. In her semi-annual report to Congress on Tuesday, Yellen expanded on a theme she has raised lately about the country's longterm health: The economy may be stuck in a prolonged period of slow growth that will keep rates ultra-low for an extended period of time. "Considerable uncertainty about the economic outlook remains," Yellen told members of the Senate Banking Committee. "Although I am optimistic about the longer-run prospects for the U.S. economy, we cannot rule out the possibility expressed by some prominent economists that the slow productivity growth seen in recent years will continue into the future." Yellen's comments seemed to be a nod to the arguments advanced by former Treasury Secretary Larry Summers that the economy is stuck in period of secular stagnation, a slow-growth funk that isn't going to end in the foreseeable future. In her news conference last week, Yellen discussed various headwinds such as weak productivity and the aging of the population, which could keep the Fed's policy rate lower for a longer period. She said Fed officials were constantly reassessing those forces and deciding whether they "are not going to be rapidly disappearing but will be part of the new normal." Yellen's comments Tuesday marked the third time in recent weeks that she has stressed all the unknowns that are keeping the Fed from raising rates.

"Yellen has certainly become less optimistic about future economic growth," said Sung Won Sohn, an economics professor at California State University, Channel Islands. "She is citing the slowing in productivity, the slowing growth of the labor force and a mountain of global uncertainties."

Weak Momentum In delivering the Fed's twice-a-year economic report to Congress, Yellen cited a marked slowdown in job growth in April and May and said the Fed will be watching carefully to see whether the weaker momentum is temporary or a sign of a bigger problem. Yellen also expressed concerns about the global economy, including slower growth in China and the upcoming vote in Britain over leaving the European Union, which "could have significant economic repercussions." She also noted weak productivity growth in the U.S. and persistently low inflation Yellen emphasized the same cautious approach the central bank took following its meeting last week when it left a key interest rate unchanged. The Fed boosted its benchmark rate by a quarter-point in December to a range of 0.25 percent to 0.5 percent and at the time projected another four rate hikes this year. But since December, financial market turbulence at the beginning of the year, a global economic slowdown and a sharp drop in oil prices have kept the Fed on the sidelines. Fed officials are now projecting just two rate hikes this year. Yellen acknowledged to senators the problems weighing on the economy. "Economic growth has been uneven over recent quarters," she said. "Subdued foreign growth and the appreciation of the

dollar weighed on exports while the energy sector was hit hard by the steep drop in oil prices since mid-2014. In addition, business investment outside of the energy sector was surprisingly weak." During the question and answer session, Yellen was asked about the likelihood that the country could be in a recession by the end of the year. She said she expects the U.S. economy to grow and described the possibility of a recession this year as "quite low." While overall growth, as measured by the gross domestic product, slowed to a tepid rate of just 0.8 percent in the first quarter, Yellen in her testimony pointed to encouraging signs that growth was strengthening in the second quarter. But even with a rebound in growth and job creation, the recovery has been uneven, Yellen said. While the overall employment rate has fallen to 4.7 percent from a high of 10 percent, Yellen said it was "troubling" that the rate for African Americans and Hispanics remained above the national average. Some private economists believe the central bank might raise rates at its next meeting on July 26-27 if markets are not roiled by Britain's upcoming vote and the June employment report bounces back. But other analysts think the first rate hike this year is more likely to happen in September, followed by another in December.

TO ADVERTISE TODAY IN THE TRIBUNE CALL @ 502-2394

The Utilities Regulation and Competition Authority PRESENTS ITS

2016 Oral Hearing

“Embracing New Horizons and Expanding Our Reach” Wednesday, June 29, 2016 Utilities Regulation and Competition Authority’s Office Frederick House, Frederick Street New Providence 6:00 p.m. - 9:00 p.m.

FEDERAL Reserve Chairman Janet Yellen arrives on Capitol Hill in Washington, yesterday, to testify before the Senate Banking Committee. Yellen said the U.S. economy faces a number of uncertainties that require the Fed to proceed cautiously in raising interest rates. (AP Photo)

VACANCY Major law firm is immediately seeking a detail oriented, hands-on individual to fill the position of Legal Secretary. The successful candidate must be an exceptionally motivated, hardworking and dynamic individual having at least 4 years previous legal experience within the litigation and real estate practice areas. Required skills, knowledge: • Experience in drafting pleadings, originating applications and claims and other court documents; preparation of agreements for sale, conveyances and mortgages, and other relevant documents; • The ability to use initiative, multi task, work accurately under pressure, possess exceptional organizational and communication skills and be able to work overtime and weekends; • Computer literacy, including advanced proficiency in the use of Microsoft applications. Compensation: Commensurate with qualifications and experience; excellent benefits; Only short-listed applicants will be contacted. Reply in confidence to: vacancy50@gmail.com


PAGE 6, Wednesday, June 22, 2016

THE TRIBUNE

Trump’s campaign spends $6 million with Trump companies WASHINGTON (AP) — Donald Trump is one of the wealthiest people to ever run for president, but his campaign appears to be flat broke. What's more, fundraising reports show he's used about $6 million in campaign money to pay his own companies and family members. The billionaire businessman's financial woes were enough to inspire the mocking Twitter hashtag "TrumpSoPoor" on Tuesday and, far more seriously, give already reluctant donors a fresh batch of reasons to withhold their money. Trump's campaign expenses are hardly inspiring confidence among people whose money he's pursuing. The spending includes a $423,000 May payment to Mar-a-Lago, the private club in Florida that serves as his vacation home, and enough Trump-branded bottled water to fill a bathtub. Democratic rival Hillary Clinton ribbed Trump on Tuesday, tweeting to followers: "What is Trump spending his meager campaign resources on? Why, himself, of course." A presidential campaign is expensive — about $1 billion in recent years. That

REPUBLICAN presidential candidate Donald Trump gestures as he speaks in Las Vegas. Trump’s campaign is cycling $6 million into his companies through use of his properties; meanwhile, Trump has been on an urgent fundraising quest. (AP Photo) money pays for crucial candidate outreach, including costly television advertising and identifying, persuading and getting voters to the polls in November. Trump began this month with $1.3 million in the bank, less campaign cash than many congressional candidates and even behind

several of the Republican presidential candidates he defeated. The $3 million he collected in May donations is about one-tenth what Clinton raised. Trump waves off criticism of his fundraising, saying he only began in earnest May 25 despite having become the presumptive nominee

weeks earlier. He largely financed his successful primary bid through personal loans but now is leaning heavily on the Republican National Committee for help. "To date, the campaign's fundraising has been incredible, and we continue to see a tremendous out-

MARKET REPORT TUESDAY, 21 JUNE 2016

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,927.13 | CHG 1.37 | %CHG 0.07 | YTD 103.18 | YTD% 5.66 BISX LISTED & TRADED SECURITIES 52WK HI 3.40 17.43 9.09 3.50 4.70 0.18 8.34 8.25 5.84 10.60 15.50 2.57 1.60 5.80 7.82 11.00 7.50 6.90 12.25 11.00

52WK LOW 2.21 17.43 9.09 3.00 4.70 0.12 5.32 7.25 5.50 6.85 14.49 2.25 1.27 5.51 6.00 9.85 6.01 5.25 11.75 10.00

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 105.50 100.00 100.00 100.00 105.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE

LAST CLOSE 3.40 15.85 9.09 3.50 5.22 0.12 6.56 8.20 5.84 10.60 14.50 2.64 1.45 5.80 7.55 9.98 7.40 6.36 11.93 10.00

CLOSE 3.40 15.85 9.09 3.50 5.22 0.12 6.56 8.20 5.84 10.60 14.49 2.63 1.45 5.80 7.55 9.98 7.50 6.36 11.93 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 -0.01 0.00 0.00 0.00 0.00 0.10 0.00 0.00 0.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

SYMBOL FBB17 FBB18 FBB22

LAST SALE 100.00 100.00 100.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

113.95 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

114.78 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.83 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

VOLUME 115

1,000

500 3,200

250

100

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 11.2 11.7 8.4 15.9 N/M N/M 35.5 14.9 11.5 19.6 27.4 19.5 8.7 11.4 12.3 10.4 11.5 9.0 15.8 0.0

YIELD 2.65% 6.31% 0.00% 4.57% 0.00% 0.00% 2.85% 3.17% 3.42% 3.40% 4.21% 2.28% 2.76% 4.14% 3.64% 0.00% 3.73% 1.89% 5.36% 0.00%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25%

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.03 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330

MUTUAL FUNDS 52WK HI 1.97 3.82 1.91 160.64 138.35 1.43 1.64 1.53 1.05 6.67 8.16 5.81 10.66 10.12

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.37 1.51 1.45 1.03 6.11 6.93 5.55 10.37 8.65

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 5 Royal Fidelity Int'l Fund - Equities Sub Fund

NAV 1.97 3.83 1.91 164.74 133.64 1.43 1.64 1.53 1.05 6.67 8.01 5.81 10.66 8.65

YTD% 12 MTH% 1.35% 4.06% 1.43% 6.57% 0.70% 3.23% 1.67% 5.13% 0.66% -3.41% 1.23% 3.88% 0.55% 8.17% 0.86% 5.37% 1.07% 1.61% -0.14% 9.15% -1.87% 15.62% 0.83% 4.82% 70.00% 2.80% -6.29% -13.65%

NAV Date 30-Apr-2016 30-Apr-2016 29-Apr-2016 31-Mar-2015 30-Sep-2015 30-Apr-2016 30-Apr-2016 30-Apr-2016 30-Apr-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

pouring of support for Mr. Trump and money to the Republican Party," his campaign said in a statement Tuesday. Both Trump and the party say he can write checks if donations don't pick up. But there are signs he is taking fundraising more seriously. He made his first emailed pitch for donations on Tuesday, writing that he would match up to $2 million in contributions. "This is the first fundraising email I have ever sent on behalf of my campaign," Trump wrote. "That's right. THE FIRST ONE." That more-engaged approach can't come too soon for Republican financiers. "There's a lot of reluctance," said Spencer Zwick, who was Mitt Romney's chief fundraiser four years ago. "Some are saying the finance organization is highly disorganized." Trump's defenders, including New York donor Anthony Scaramucci, say a major part of his appeal is that he's a "non-politician" who does things differently. That extends to his propensity to mix business with politics. Finance reports filed with the Federal Election Commission detail a campaign unafraid to co-mingle political and business endeavors in an unprecedented way. Wealthy political candidates in the past, including New York Mayor Michael Bloomberg and presidential contender Steve Forbes both walled off their campaigns from the companies bearing their names. Not so for Trump. Through the end of May, his campaign had plowed about $6 million back into Trump corporate products and services, a review of federal filings shows. That's nearly 10 percent of his expenditures. There's nothing illegal about it. Regulations do require companies— even ones owned by the candidate— to charge fair-market value so as not to run afoul of a ban on corporate campaign contributions. They also require some complicated record-keeping. For instance, FEC reports show the campaign making about $400,000 in payments to Trump. But that's a campaign finance accounting quirk. What's actually happened is that Trump donated $400,000 in campaign office space and

some salaries of company employees who have been working on his presidential bid. Yet Trump's companies also charge his campaign for goods and services, putting him at risk of appearing to be a self-dealer. That's why Forbes and Bloomberg avoided the issue altogether, former aides said. "You just never want to have to worry about any blurred lines with personal, corporate, in-kind and contributor money," said Bill Dal Col, who ran Forbes' unsuccessful 1996 and 2000 White House campaigns. One more complication: The $46 million worth of loans Trump made to his campaign can be repaid with donor money, even though he insists he won't do that. The situation has some donors spooked, said Charlie Spies, a Republican elections attorney who has worked with major contributors and was helping Trump opponent Jeb Bush. "Why would donors give money when the first dollars go to help a billionaire buy products from his own company?" Spies asked. The biggest payment to a Trump company is $4.6 million to TAG Air, the holding company of his airplanes. His campaign headquarters is at Trump Tower in New York. The campaign has paid about $520,000 in rent and utilities to Trump Tower Commercial LLC and to Trump Corporation. For events, he often uses his own properties. The campaign paid out $26,000 in January to rent a facility at Trump National Doral, his golf course in Miami. He'd held an event in the gold-accented ballroom there in late October. The campaign spent another $11,000 on Trump's hotel in Chicago. Even refreshments have a Trump tie. About $5,000 from the campaign went to Eric Trump Wine Manufacturing LLC, which offers Virginia wines bearing the bold letters of Trump. Son Eric Trump also factors into another large Trump campaign expense. The campaign has paid about $4.7 million for hats and T-shirts purchased from Ace Specialties. That company is owned by a board member of Eric Trump's charitable foundation.

NOTICE

NOTICE is hereby given that JAMES EDWARD FENELUS of Carmichael Road, New Providence, 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 June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that ERONNE LUBIN of Marsh Harbour, Abaco, 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 15th day of June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PUBLIC NOTICE

CHANGE OF NAME BY DEED POLL The public is hereby advised that I, Wendy Morris of 19235 NW 24th Ave. Opa-Locka, FL 30056, have changed my name to Wendy Ann Fisher through the Circuit Court of the 17th Judicial Circuit, Broward County Court, Broward County, Florida. If there are any comments on the name change, you may write to the Chief Passport Officer, P.O. Box N-742, Nassau, The Bahamas, no later than thirty (30) days after the date of the publication of this notice.

NOTICE

NOTICE is hereby given that BENJI DESTIN of Fox Hill, New Providence, 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 15th day of June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.


THE TRIBUNE

Wednesday, June 22, 2016, PAGE 7

Puerto Rico hit with lawsuit as key debt negotiations stall SAN JUAN, Puerto Rico (AP) — A group of bondholders on Tuesday sued Puerto Rico's government as debt negotiations fell apart less than two weeks ahead of what would be the largest default in the island's history. The suit filed in New York by holders of general obligation bonds seeks to invalidate a debt moratorium and fiscal emergency law passed in early April as the island struggles to restructure $70 billion in public debt. While Gov. Alejandro Garcia Padilla has not yet implemented a temporary debt moratorium, many speculate he will soon because Puerto Rico is expected to default on a payment of nearly $2 billion on July 1. That amount includes more than $700 million in general obligation bonds that are supposed to be guaranteed under the island's constitution. The lawsuit said bondholders relied on that key protection when they bought general obligation bonds two years ago. "Plaintiffs have an absolute right to be paid first among all obligations of the Commonwealth, to be paid in full, and to be paid on time," the lawsuit states. "When Puerto Rico approached the capital markets in late 2013 to issue the 2014 GO Bonds, Governor Garcia Padilla trumpeted the bonds' constitutionally guaranteed priority." The case was brought by Washington-based Robbins, Russell, Englert, Orseck, Untereiner & Sauber on behalf of several investment groups. Overall, Puerto Rico has roughly $12.5 billion worth of outstanding general obligation bonds, according to the lawsuit. The lawsuit was filed on the same day that Puerto Rico's government an-

PUERTO Rico’s Resident Commissioner Pedro Pierluisi, D-Puerto Rico, speaks on Capitol Hill in Washington, during a House Natural Resources Committee markup hearing on H.R. 5278, Puerto Rico Oversight, Management, and Economic Stability Act. House Republican leaders and President Barack Obama pressured lawmakers in both parties to back legislation to help ease Puerto Rico’s financial crisis as the U.S. territory faces a $2 billion debt payment in just over three weeks. The House is scheduled to begin debate Thursday, June 9, 2016, on a bill that would create a financial control board and restructure some of Puerto Rico’s $70 billion debt. Pierluisi, is supporting the bill despite opposition from other lawmakers on the island. (AP Photo) nounced it was ending private talks with bondholders following several failed proposals and counterproposals involving debt payments. Puerto Rico's Government Development Bank, which is operating under a state of emergency amid dwindling liquidity, publicly released those proposals, including one presented to bondholders a week ago that officials said was more generous than a previous proposal made in April. Gov. Alejandro Garcia Padilla said the counterproposals offered only limited short-term liquidity and basically expected Puerto Rico "to roll the dice on future growth while locking into a debt burden that no other U.S. state faces." Garcia added that he remains open to further ne-

gotiations and stressed that his administration has taken what he called extraordinary measures amid a worsening fiscal crisis. "For many of these measures, hardworking Puerto Ricans and their families have shouldered the greater portion of the burden," he said. "We now expect our creditors to step up to the plate and be willing to make sacrifices of their own." Puerto Rico already faces a couple other debt-related lawsuits as the U.S. Senate prepares to debate a bill called PROMESA, already approved by the U.S. House of Representatives, that would implement a federal control board, among other things, to address the island's spiraling debt.


PAGE 8, Wednesday, June 22, 2016 DEMOCRATIC presidential candidate Hillary Clinton speaks about the economy, yesterday, at Fort Hayes Vocational School in Columbus, Ohio. (AP Photo)

THE TRIBUNE

Clinton warns that Trump would plunge economy into recession COLUMBUS, Ohio (AP) — Hillary Clinton said Tuesday that Donald Trump would send the U.S. economy back into recession, warning his "reckless" approach would hurt workers still trying to recover from

the 2008 economic turbulence. Clinton's address in Ohio, one of the most important battleground states, sought to define Trump as little more than a con man, whose ignorance and ego would

tank the global economy, bankrupt Americans and risk the country's future. "Every day we see how reckless and careless Trump is. He's proud of it," the Democratic presidential candidate said. "Well, that's his choice. Except when he's asking to be our president. Then it's our choice." The speech was similar to one earlier this month in San Diego in which Clinton tried to undercut the Republican candidate's foreign policy credentials. This time, at an alternative high school in Columbus, she questioned whether Trump has the temperament to guide the economy and repeatedly pointed to his business record as evidence of how he would treat small businesses and working families. "Just like he shouldn't have his finger on the button, he shouldn't have his hands on our economy," Clinton said. Her speech included stinging one-liners, including a takedown of Trump's best-selling books. "He's written a lot of books about business. But they all seem to end at Chapter 11," she said, in an allusion to the U.S. bankruptcy code. Trump responded on Twitter as Clinton delivered her address, writing in one tweet: "How can Hillary run the economy when she can't even send emails without putting entire nation at risk?" He appeared to be referring to Clinton blending her personal and official emails on a homebrew server in her house, while she was secretary of state. The businessman later appeared to embrace one of Clinton's attack lines, writing: 'I am "the king of debt.' That has been great for me as a businessman, but is bad for the country. I made a fortune off of debt, will fix U.S." Republican National Committee chairman Reince Priebus said Clinton was "the last person qualified" to talk about improving the economy, pointing to "eight years of disastrous Obama policies."

Economic Credentials Clinton used Trump's own statements to undercut his economic credentials, citing remarks he made that that U.S. could sell off assets, default on its debt and that wages are too high. She also repeated a comment he made that pregnant employees are an "inconvenience." Clinton said financial markets often "rise and fall" on comments by presidential candidates. Suggesting the United States could default on its debt could cause a "global panic," she added. She also seized on a report Monday by Moody's Analytics which found Trump's plans would lead to a "lengthy recession," costing nearly 3.5 million American jobs. The analysis by Moody's Mark Zandi, a Clinton donor and former economic adviser to Republican Sen. John McCain's 2008 campaign, predicted Trump's approach would swell the federal debt as the U.S. economy becomes more isolated by less trade and cross-border immigration. Trump has pointed to trade as a major difference with Clinton, saying last week that her support of past trade deals, such as the North American Free Trade Agreement, has cost the country "millions of jobs." He also has assailed her promotion of the TransPacific Partnership trade deal as Obama's secretary of state as a sell-out of U.S. workers. Clinton announced her opposition to the TPP last October, saying it failed to meet her test of providing good jobs, raising wages and protecting national security. Brushing it aside, Clinton said there was a difference between "getting tough on trade" and "recklessly starting trade wars." She noted that many of Trump's products are made in countries like China, Mexico, Turkey, India and Slovenia.


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