06292016 business

WEDNESDAY, JUNE 29, 2016

business@tribunemedia.net

NAD eyes fee rise after $15.1m loss

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Mulling eight cent per passenger increase

THE Nassau Airport Development Company (NAD) is currently mulling another fee increase, as it predicts a “few more years” of losses following $15.1 million in ‘red ink’ incurred during its 2015 financial year.

Vernice Walkine, NAD’s president and chief executive, in e-mailed responses to Tribune Business questions, revealed that the Lynden Pindling International Airport (LPIA) operator is assessing whether to raise aeronautical fees.

“NAD is currently considering an aeronautical fee increase, which will translate into an $0.08 increase in fees per passenger,” Ms Walkine said.

LPIA operator: Losses to continue for ‘a few years’ But maintains ‘BBB-’ credit rating VERNICE WALKINE “NAD is currently in the midrange for airport fees compared to its competitors in the Caribbean region.”

The latter comment is designed to reassure the aviation industry, plus the travelling public and NAD’s retail/restaurant tenants, that the LPIA

operator is not in danger of ‘pricing itself’ out of the market - something that could have serious consequences for the Bahamian tourism industry.

However, NAD’s freedom to raise fees and charges “as necessary”, and without Government or political interference, is vital

Price control proposal like ‘Gestapo tactics’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Chamber of Commerce (BCCEC) warned yesterday that any Government move to force businesses to reduce prices in line with import duty cuts would be akin to “economic dictatorship” and “Gestapo tactics”.

Edison Sumner, the BCCEC’s chief executive, told Tribune Business that the proposals being floated by the Price Control Commission would, if passed, place the Government in charge of running private sector businesses.

Reiterating that proper competition and market forces, rather than Government regulation, was the best defence against price gouging and unscrupulous merchants, Mr Sumner said numerous factors - other than taxes and import duties - helped determine consumer prices.

And, with the private sector now responsible for administering and collecting Value-Added Tax (VAT), the Chamber chief executive said a “quid pro quo” between See PG B2

Forcing lower prices akin to ‘economic dictatorship’ Chamber rails against tie to lower import duties Competition, market forces better control method

EDISON SUMNER

Union to ‘do what it has to do’ over Hilton meltdown

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE hotel union’s president yesterday said that if working conditions at the British Colonial Hilton do not improve soon it will “do what it has to do”, amid an air conditioning breakdown that has persisted for more than a week.

Meanwhile, Robert Farquharson, the director of labour, told Tribune Business that he will send a team to the property to assess the situation, after this newspaper was alerted to staff complaints about the unbearably humid conditions they are being forced to endure.

Tribune Business sources said a number of the British Colonial Hilton’s 300 staff did not report for work yesterday in protest at the conditions.

However, Nicole Martin, president of the Bahamas Hotel Catering and Allied Workers Union (BHCAWU), was unable to confirm or deny whether this occurred. And attempts to reach British Colonial Hilton general manager, Rui Domingues, were unsuccessful up to press time yesterday.

A malfunctioning air conditioning system at the historic downtown Nassau property has forced it to compensate guests by providing them with accommodations at other Nassau hotels. China Construction America (CCA), the Pointe developer and Baha Mar’s main contractor, acquired

Workplace health and safety ‘paramount’ Wants A/C malfunction sorted ‘real quickly’ Dept of Labour to conduct workplace inspection the resort in late 2014.

“We were made aware of the issue some time last week when it got really bad,” Ms Martin told Tribune See PG B2

$4.15 $4.20 $4.21

$4.21

to its ability to service the debt financing (chiefly bonds) that it took on to fund LPIA’s $409.5 million redevelopment.

The airport operator thus has the ability to increase revenue streams whenever needed to ensure it meets its debt servicing requirements, and keeps both local and international bondholders happy.

NAD’s annual report for the year to end-June 2015, obtained

by Tribune Business, shows that the airport operator suffered a $15.101 million net loss, a slight 7.6 per cent reduction from the previous year’s $16.341 million.

Ms Walkine blamed 2015’s net loss on NAD’s debt servicing costs, which remained relatively flat year-over-year at $41.813 million. This was the key factor in wiping out the See PG B4

$6.6bn debt ‘well beyond’ the need for stabilisation

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas is “well beyond” the point where it merely needs to “stabilise” its $6.6 billion national debt, a former Chamber chairman said yesterday, as he warned that the economy was showing “no desire for growth”.

Robert Myers, now a principal with newlyformed civil society group, the Organisation for Responsible Governance (ORG), said Bahamians would likely only realise the consequences of successive governments’ fiscal profligacy “when they slam into the wall”.

Suggesting that too many were ignoring “the writing on the wall”, Mr Myers said the Bahamas now stood “on the edge of fiscal doom”, with little to no capacity to respond to a major economic shock.

He was responding after See PG B5

Bahamas showing ‘no desire for growth’ Ex-Chamber chair fears ‘wall slam’ for public Concern over ‘wipe out’ from major shock

ROBERT MYERS

MSC warns over Customs change shipment delays Bahamian firms may see imports delayed up to week Cargo shipper sets strict new manifest rules Urges clients to work with it to avoid 25% charge

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE world’s second largest cargo shipper has warned Bahamian companies that their imports will be delayed “until the next sailing” if manifests are not made for compliance with Bahamas Customs’ new requirements.

Mediterranean Shipping Company (MSC), in a June 24, 2016, letter to its Bahamian private sector customers, expressed particular concern about the 25 per cent “processing fee” that will be levied if last-minute changes are made to cargo manifests.

MSC, which is one of the two main cargo shippers serving Nassau, together with Tropical Shipping, called on its Bahamian clients to work with it to avoid the implementation of such fees.

Yet the letter, which has been obtained

by Tribune Business, warns that companies unable to supply MSC with a complete cargo manifest by its desired time may see their containers removed from the vessel and left until the next sailing.

This, potentially, could result in a threeday delay to cargo being shipped out of Port Everglades to Nassau, and possibly a week’s delay to freight coming out of Jacksonville.

“Effective July 1, 2016, the Bahamas Customs will implement a new regulation regarding C-10 (local Manifest Correction) requirements,” MSC’s letter warned its customers.

“We should work together and accurately co-ordinate our actions on this subject, as each amendment to the manifest filed with Customs will generate a penalty of 25 per cent of the cargo value.”

MSC added that should such a ‘processing fee’ be levied, it would be applied to the “wrongdoer’s account” - implying that it would pass the extra charge on to the ‘consignee’, or ultimate owner of the imported goods, rather than pay it itself.

“In order to comply with such, and protect our customer interests by avoiding any applicable fine, we must review our procedures and enforce strict deadlines,” MSC warned, setting out the new timelines its See PG B5

PAGE 2, Wednesday, June 29, 2016

THE TRIBUNE

Striping group celebrates debt-free sixth birthday THE Bahamas Striping Group of Companies is continuing to lobby for a private-public partnership arrangement with the Government, as it celebrates becoming both debt free and six years-old.

“Establishing and growing Bahamas Striping into the business it is today has not been a walk in the park,” said Atario Mitchell, its president, who introduced his company to the public in May 2010.

The business last month celebrated its sixth anniversary, and Mr Mitchell added: “This has certainly been the wildest ride of my life.”

The Bahamas Striping Group of Companies

(BSGC) has grown to include Bahamas Striping, Airport Maintenance Services and Caribbean Pavement Solutions.

Reflecting on how the group has grown, Mr Mitchell said it took hard work, perseverance and “a whole lot of prayers” to launch and grow the business in the prevailing economic climate.

“You have to be consistently persistent,” he said.

Bahamas Striping received its initial funding from a $5,000 grant, issued via the former Ingraham administration’s Self-Starters programme, with further financing sourced later through the Bahamas En-

Price control proposal like ‘Gestapo tactics’ From pg B1 itself and the Government was a fair, just arrangement.

He was speaking after the Chamber yesterday released its official response to suggestions by E. J. Bowe, the Price Control Commission’s chairman, that the Government would amend the Price Control Act to force merchants to fully pass on import duty reductions/eliminations to consumers in the form of lower prices.

The BCCEC pointed out, though, that import duties were not the sole determinant of merchant and business pricing.

Apart from having to add VAT to consumer prices from New Year’s Day 2015, the private sector was also having to intend with constant increases in the Bahamas’ cost of doing business, plus rising commodity prices worldwide.

As a result, Bahamian entrepreneurs and business owners were constantly having to adjust prices and margins to achieve what they were in business for to make a profit.

Acknowledging that price

controls were intended to ensure essential goods and services remained affordable for the poorest Bahamians, the Chamber suggested that such regulation was a blunt instrument, and not the best for achieving the Government’s objectives.

“Competition and a free market economy lead to efficiencies and keep prices down, while improving the level and value of service in the country,” the BCCEC statement said.

“Allowing healthy competition in the marketplace will prove more effective in controlling prices of goods and services, more so than a more onerous price control regime, which in itself is intrusive and bordering on economic dictatorship.”

These sentiments were echoed by Mr Sumner himself, who told Tribune Business of Mr Bowe’s thoughts: “It comes down to economic dictatorship, it comes down to Gestapo tactics.

“No business is going to be comfortable with that.

No business is going to be comfortable with Government telling them what to charge as prices. It’s going to be the Government run-

trepreneurial Venture Fund.

The company has grown in fits and starts. Two years ago, Bahamas Striping nearly ceased business when it was forced to terminate 13 staff. For Mr Mitchell, it was a “gut-wrenching blow”.

“We saw business opportunities dry up in 2014, seemingly overnight,” Mr Mitchell recalled.

“Like every new business we experienced financial struggles. Still, we were convinced of our eventual success,” said Dr Allen Albury, the group’s managing director. “Business isn’t for the faint of heart.”

Bahamas Striping was

this year able to make its final repayment this year to the Bahamas Entrepreneurial Venture Fund, from which it has previously secured $200,000 in equity financing to expand the business. The company is now debt free.

“It’s been a dizzying, roller coaster climb, but we’re not getting off the ride,” said Dr Albury. “Headed into our sixth year we feel as if we’ve finally turned a corner from hard-pressed to survive to thrive.”

Bahamas Striping believes it this year made a breakthrough when it obtained government approval for its new, proprietary road rejuvenation product,

which preserves and extends the life of asphalt pavements.

Based on early indicators, particularly in the Grand Bahama market, the company expects the product to help fuel its business growth for years to come.

Going forward, Bahamas Striping will continue to advocate the public private partnership (PPP) model which, if successful, could see the business grow rapidly.

It is advancing an arrangememt where the Government would obtain a $50 million loan from the US Export-Import Bank, which will finance Bahamas Striping carrying out air-

port and road maintenance work on the Family Islands.

“We still see that as a win-win situation for us and the Government. Our price and product is unbeatable,” said Mr Mitchell.

Bahamas Striping has introduced a trio of new faces to its Board of Directors.

Human resource consultant, Yvette Ingraham, and accountants Marcus Grammatico and Nick Holding have become directors, taking the total number of Board members to seven.

Existing board members included Dr Albury, Felix Stubbs, Rufus Johnson and Carib Construction’s Tony Lewis.

ning your business.”

Mr Bowe, in an interview with Tribune Business on Monday, indicated that the idea of forcing price reductions through legislation was borne out of the Price Control Commission’s frustration with Bahamian businesses.

Indicating that his patience was wearing thin, Mr Bowe said merchants had largely failed to respond to two years of pleading by himself to reduce prices in line with relevant import duty cuts, thereby passing on the savings to consumers.

Still, Mr Bowe said there was “nothing on the drawing board right now” in terms of amendments to the Price Control Act, implying that the idea is currently more of a concept as opposed to something that has gained traction and support within the Christie administration.

Mr Sumner, though, reiterated the Chamber and private sector’s belief that competition and market forces will achieve the Government’s ‘price control’ objectives far more effectively.

“While we understand the Government feels the need to keep price controls in certain areas,” he told Tribune Business, “we

feel that with the proper introduction of competitive instincts in the way we do business, and allowing free markets to take their course, that will be much more detrimental to price gougers and companies that price themselves out of the market.”

Echoing the Chamber’s statement, Mr Sumner said increases in the costs of doing business, such as labour and utilities, plus rising global commodities prices, had to be factored in when assessing consumer prices.

“Many businesses are already operating on slim margins,” he told Tribune Business. “Where they see opportunities to increase their margins, but keep prices affordable, that is a situation we see as better for everyone.

“We prefer free competition and markets, rather than putting the kind of restrictive and regimental price control regime in place that may hamper business and growth more than anything else.”

With private sector activity responsible for generating VAT and the Government’s other taxes, Mr Sumner said it “plays a tremendously significant role in the buoyancy of the economy”.

“We think any reasonable

quid pro quo is for the Government and its agencies to work with the private sector to get a more efficient system by collaborating, rather than both sides having an adversarial approach,” Mr Sumner told Tribune Business.

He reiterated that the Chamber was willing to discuss the issue with both the Price Control Commission and the Consumer Protection Agency, which is headed by Senator Jerome Gomez.

The Chamber’s statement yesterday warned that “further complexity and rules” relating to price control, and business enforcement and compliance, will only increase private sector costs and impediments to the ‘ease of doing business’.

“Accordingly, the BCCEC does not support any amendments to the Price Control Act meant to force businesses to lower the cost of goods due to a lowering or elimination in customs duty,” the Chamber said.

“Perhaps more emphasis should be placed on determining ways to improve the ease of doing business in the Bahamas, which can also lead to lower costs of goods and services.”

Union to ‘do what it has to do’ over Hilton meltdown From pg B1 Business.

“The union is in communication with the company trying to figure out the best solution to it. People are still on it. I guess it’s a bad situation for everyone, and if it doesn’t get any better real quickly then the union will have to do what it has to do. Health and safety in the workplace is paramount.”

Mr Farquharson told Tribune Business yesterday: “I know that they have some major issues with the airconditioning units, and a number of their guests have had to be relocated to other properties in New Providence. I know that they had to reschedule a number of their commercial activities because of those issues.

“We haven’t received any complaints either from individual employees or the Bahamas Hotel, Catering and Allied Workers Union, which is the bargaining agent for those non-managerial employees. We have not received any formal or informal complaints.

“I will take the initiative and have my team go down there and conduct an inspection to determine exactly what the situation is.”

THE TRIBUNE

Wednesday, June 29, 2016, PAGE 3

Senator: End ‘habitual’ 5% Gov’t spend rises

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FORMER FNM Cabinet minister has called for an end to “the habitual and automatic programming” of 5 per cent spending increases throughout the Government.

Carl Bethel, in his contribution to the Senate’s 2016-2017 Budget debate, warned that this and other measures, such as reducing capital spending even further to $200 million per annum, were necessary to stem a “perilously high” $6.6 billion national debt.

With the Bahamas’ debtto-GDP ratio at over 76 per cent, Mr Bethel argued that the Prime Minister was “fooling no one” by constantly stripping our so-called ‘contingent liabilities’ so he could present the lower, direct charge on central government.

Calling for “urgent measures” to be taken, Mr Bethel told the Senate:

Bethel calls for $200m ‘cap’ on capital spending And wants ‘immediate audit’ of public service “The first should be to remove the habitual and automatic programming of a 5 per cent across-the-board increase in spending in every head of expenditure in the Budget; all ministries, all departments.

“A baseline year’s expenditure should be established, and that level of expenditure should be fixed for every department and ministry for the succeeding five years.

“Only when there is a clear reason to increase the baseline allocation will that be done (when the Department of Statistics has to conduct the census). Any such increase in the base-

line allocation will have to be justified specifically.

This is one way to begin to programme restraint of public spending into the Budget.”

With the majority of the Budget allocated to civil service salaries and emoluments, plus the Government’s other fixed costs such as rent, Mr Bethel called for “an immediate audit” of all departments and ministries overseen by the Public Service Commission.

This, he added, needed to review “human resource allocation, the dispersal and use of tools and equipment, the deployment of staff and skills levels, and to seek to better deploy and more rationally allocate both human and physical resources, to avoid duplication of efforts, wastage and misuse or non-usage of government property, tools and equipment” Mr Bethel also argued that the Government

should cap its capital spending at $200 million per annum, with this sum evenly allocated between $100 million for New Providence and $100 million for Grand Bahama and the Family Islands.

He said that in an emergency, such as the aftermath of a major catastrophe, the Financial Administration Act could help, or the Government could bring a supplementary spending Bill to Parliament.

The Christie administration has already ‘capped’ capital spending, albeit at a slightly higher $242 million, a sum equivalent to around 3 per cent of gross domestic product (GDP).

However, both this and Mr Bethel’s suggestion appear to run contrary to the International Monetary Fund’s (IMF) advice, which was for the Government to focus its spending away from the recurrent side of the Budget to “growthenhancing infrastructure

CARL BETHEL

projects”.

And many observers, including FNM deputy leader, K P Turnquest, have warned that the $242 million allocation is simply inadequate to meet the Bahamas’ infrastructure needs, which are spread across numerous islands.

$75m condo project in 2-year sell-out timeline

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE $75 million Caves Heights condominium development expects to be fully sold-out within two years, its sales and marketing executive said yesterday, adding that it has largely been unaffected by Baha Marrelated uncertainty.

Gustaf Hernqvist, Caves Heights’ vice-president of sales and marketing, said the project had generated roughly $8 million in sales over the past 12 months.

He added that the development, which consists of two, three and fourbedroom penthouse condos

Caves Heights sees $8m sales in 12 months Rides out lower buyer traffic due to Baha Mar with an average price tag of $800,000-$900,000, has been able to maintain good momentum despite the slowdown in buyer traffic created by the stalled $3.5 billion Baha Mar resort.

“I do think that there are still some believers out there. I think that recently

people have started to get more of a feeling that something actually will be happening,” said Mr Hernqvist.

“It’s hard to interpret everything that’s been going on, the back and forth, but we have still been successful with sales. We have still been able to produce 10 sales in the last 12 months, which I feel has been pretty good in this market. Definitely the whole Baha Mar situation has slowed the traffic down. It definitely has. We have still been able to maintain a good level of sales.”

Mr Hernqvist added: “We have done a lot of work to the property over the last six months, repairing of buildings, new installment

of landscaping and just really making the grounds look a lot better in the common areas.

“Only 20 of 84 condominiums remain. The way I look at it, if Baha Mar will open up within the next six to 12 months, then I have a feeling that our sell-out period would probably be 1218 months from now.

“That’s dependent on Baha Mar opening, but just based on the pace of sales we have today I believe we have at the most a two year sell-out process for Caves Heights.”

Mr Hernqvist said many persons are starting to gravitate towards condo living. “We have a variety

of buyers, a good number of Europeans purchasing, but we also have residents in the Bahamas, successful business people and other accomplished individuals, who are looking for a convenient lifestyle,” he added.

“There are a lot of people starting to appreciate the condo concept because it’s very easy going living, especially if you live on an island like Nassau or just the Bahamas in general. A lot of people, not just foreigners but also locals, are starting to prefer this type of living.

“You have Caves Village next door, which continues to grow. There are some great additions over the past two years. I’m sure that

The Government has also announced its intention to reduce recurrent spending as a percentage of GDP, cutting this from a peak of 25.3 per cent in the upcoming 2016-2017 fiscal year to 24.2 per cent in 2017-2018, and 22.8 per cent in 2018-2019. there will be more to come as well. We are pretty much all rented out. We may have one or two spaces left,” Mr Hernqvist continued.

“I think that we are coming to a bit of a critical mass when it comes to residents to be able to entertain the type of retail shops and restaurants that are not going up in the western area of Nassau.

“Just getting a little bit closer into this Cable Beach area is attractive at the moment. I have had a number of residents that have sold their homes in Lyford Cay and Old Fort Bay that have been tired of maintaining a bigger home. I have definitely seen an increase of that type of resident purchasing here at Caves Heights.”

PAGE 4, Wednesday, June 29, 2016

NAD eyes fee rise after $15.1m loss From pg B1 company’s $49.078 million in operating income, which was up 4 per cent.

“We experienced a net loss of $15.1 million for the period ending 2015, primarily as a result of interest ($42 million) due on our senior and participating debts,” Ms Walkine said. “As you are aware, the redevelopment cost of the airport was $409.5 million, which was financed by a loan from a consortium of lenders.

“We anticipate a net loss for the next few years as we repay this debt, which currently has an interest component that is significantly higher than the principal.

As we continue to reduce the principal balance, the interest component is also reduced, and therefore interest expense will become less.”

NAD’s 2015 annual report, which appears to have been produced in March 2016, and not brought to public attention until now, shows that last year’s net

loss has pushed the company into an $11.208 million ‘accumulated deficit’ position.

That figure shows the ‘total loss’ NAD has incurred over its corporate life, and again highlights why its ability to raise fees and charges without interference is so vital.

“We have managed our operation carefully, and continued to meet our debt repayment schedules for senior debt and participating debt in financial year 2015,” Ms Walkine said.

“Further, the airport maintained its BBB- investment grade credit rating.”

NAD’s financials confirm it is in compliance with the covenants and terms set by its lenders, with more than $17.87 million currently being held in reserve accounts with Citibank in New York.

This sum is equivalent to six months’ worth of debt principal and interest, and is being held to ensure that NAD services its obligations to two tranches of LPIA debt financing.

LYNDEN PINDLING INTERNATIONAL AIRPORT Ms Walkine said NAD was “projecting a modest increase in passenger and revenue growth” for its upcoming 2017 financial year, compared to the current 12-month period that is set to end tomorrow.

While not providing any financial projections for the 2016 financial year, Ms Walkine said the US departures terminal - the first building completed at the ‘new’ LPIA - remained in “excellent condition.... to deliver world class services” more than five years later.

“The major project focus

for 2017 will be on maintaining the facilities, as they represent the very first impression many visitors have of our country,” she told Tribune Business.

“Collectively, the maintenance and engineering team is forecasted to spend on the upkeep of the facility a total of $3.9 million.

This $3.9 million includes $1. 4 million for sustaining capital expenditure, and the balance of $2. 5 million for operational expenditure.”

Ms Walkine said NAD had not factored Baha Mar, and the projected increase

in passenger numbers and revenues, into its financial numbers for 2015-2016 and future years.

“While Baha Mar represents an exciting addition to the tourism offering in The Bahamas, NAD conservatively did not factor the resort into its projected passenger numbers and revenue streams for the fiscal period represented in the annual report,” she added.

“The Bahamas continues to be a demand destination with a vibrant and wellpromoted tourism product in both Nassau/Paradise Is-

THE TRIBUNE land and the Family Islands, and we look forward to the future opening of Baha Mar.” A 2 per cent year-overyear increase in passengers drove the increase in NAD’s 2015 revenues, with Ms Walkine attributing the growth to 3.3 million to the strengthening US economy.

“Since international passengers account for a significant portion of traffic, LPIA benefits from short and long-term travel incentives and promotions offered by the Government, hoteliers and other tourism attraction operators to increase travel to the Bahamas,” she added.

“NAD continues to partner with its tourism partners to ensure adequate airlift is available to the destination from key routes.

Ms Walkine said NAD remained in talks with a private developer over the construction of a hotel at LPIA, a project that has been on the drawing board for several years.

“We continue to believe that an airport hotel will play an important role in meeting the needs of connecting or in-transit travellers to LPIA,” the NAD chief executive said.

“An important consideration is the timing for such a project. We are still in active discussions in this regard.”

THE TRIBUNE

Wednesday, June 29, 2016, PAGE 5

MSC warns over Customs change shipment delays From pg B1 Bahamian clients must adhere to.

For MSC’s service to Nassau from Port Everglades on Monday, Wednesday and Friday, the final cargo manifest or ‘master bill of lading’ must be received by the shipping company no later than midday on the day of sailing.

No “exceptions” or “dummy bills of lading” are allowed, and MSC warned of failure to comply: “If final master bills of lading are not received on time, these containers will be rolled on

to next sailing regardless if unit is already in gated.”

The same applies to MSC’s service to Nassau and Freeport from Jacksonville, where all final cargo manifests must be presented to the company by midday on Thursday for Friday sailing.

Otherwise cargo will again be left for the next sailing.

MSC’s requirements, which have been forced by the changes to the Customs Management Act and its regulations by amendments accompanying the 2016-

$6.6bn debt ‘well beyond’ the need for stabilisation From pg B1 a newly-released InterAmerican Development Bank (IDB) report, revealed

by Tribune Business on Monday, suggested that the Government’s mediumterm fiscal consolidation plan was “insufficient” to make major inroads into cutting the national debt and associated ratios.

The IDB’s Caribbean Quarterly Bulletin said the plan would only stabilise the debt at its current level, adding that the Bahamas now stood on the “dark side” of the debt-growth relationship, where any further increases in the national debt will further depress GDP expansion.

And, based on the economy’s forecast 1 per cent growth rate, the IDB forecast that a 7 per cent ‘fiscal adjustment’ - equivalent to $560 million - was required on the Government’s primary balance to cut the

debt-to-GDP ratio from its present 76 per cent to 60 per cent by 2021.

“That’s what happens if yu keep borrowing and are not accountable,” Mr Myers told Tribune Business.

“We’ve said it’s coming.

We’ve told everybody it’s coming, and it is.

“If they [Bahamians] can’t see the writing on the wall, maybe they’ll feel it when they slam into the wall. We can’t say it more plainly than we have.”

The IDB report added that the Bahamas also required a 3.4 per cent ‘adjustment’, equivalent to $270 million of GDP, just to stabilise the debt-to-GDP ratio at its current level north of 76 per cent.

Mr Myers, though, suggested that even achieving this target was inadequate, given that the Bahamas had effectively used up any borrowing capacity it could employ to a major economic emergency, such as

2017 Budget, are likely to further strain the ‘ease of doing business’ for many Bahamian companies.

The shipping company’s policy response will impact logistics and supply chain management, especially where ‘perishable’ goods such as foodstuffs are concerned, if they are left on the dock.

One private sector source, speaking on condition of anonymity, told Tribune Business: “This is going to be another big problem.

“We have no control over the shippers. What about food, perishables? There’s all kinds of ramifications, and they [the Government] don’t take the time to think it through.”

Michael Maura, Arawak

Port Development Company’s (APD) chief executive, previously told Tribune Business that the shipping industry had legitimate concerns regarding the penalties that could be incurred as a result of using the C-10 declaration form, and if prohibited or restricted goods were discovered, as such situations were not necessarily its fault.

Apart from the 25 per cent ‘processing fee’ that will be levied on the “value of goods” listed in C-10 declarations, which are used to make late amendments to cargo manifests, the Budget has introduced a whole raft of increased charges and penalties on both the air and sea cargo industries.

For sea cargo, shippers/

importers who fail to provide the manifest and loading list “at least 12 hours” before the ship lands in the Bahamas hit will be hit with a $2,500 fee. That represents a major increase from the current across-theboard $75 fee.

A fee equivalent to 25 per cent of the imported good’s value will be levied on the parcel list used by cargo ships, while a $5,000 per good charge will be levied on shippers “if prohibited or restricted goods are found on board their vessels”.

Mr Maura said there were “a lot of reasons” for C-10s to be employed, given that shipping companies were dealing with clients and suppliers where English

was not the first language, and which often described physical freight differently.

He added that suppliers were often shipping product to different locations in the Bahamas, and sometimes confused manifests for one destination with those for another, requiring last-minute changes.

“There are a lot of situations that take place on a regular basis that require C10s,” Mr Maura said.

“This is something that needs watching carefully, but Customs indicated it would be fair and transparent with the process, and will not be levying fines and penalties in a manner that causes more uncertainty.”

a September 11-type event impacting the world economy, or a major hurricane directly hitting Nassau.

“What happens, God forbid, if fuel prices go up before that [debt stabilisation] or a major hurricane hits Nassau?” Mr Myers asked.

“We’re wiped out.

“They’ve pushed us to the edge of fiscal doom, and we have no financial contingency. One misstep here, and we’re gone. We’ve got to be thinking well beyond stabilisation, and the stage of stabilisation, at this point.”

The IDB report agreed that the Bahamas’ current debt metrics provide it with little capacity to respond should it be faced with a major catastrophe or natural disaster.

It added that the fiscal buffers for all Caribbean nations, including the Bahamas, were “inadequate”.

With only Jamaica forecast to produce “an unambiguous improvement”, the IDB warned that there was “a deteriorating limited policy space to respond to negative external shocks”.

Disheartened by the political elite’s response, Mr Myers said: “What are any of the political parties plans to move the country forward in a meaningful way?

“They’re talking more about who’s going to run in each constituency, while there’s a real crisis going on. What are they going to do about the fundamental socio-economic problems?

“They’re not growing anything or managing anything. All they do is find more hurdles to the ease of doing business than less, more taxes, and more nonsense and more rubbish that gets in the way of growth,” he continued.

“You read all the stuff you have to go through to get a Business Licence; it’s obscene, and they’re not doing anything to make it attractive to come here and want to do business.

“Agreements are not transparent, there is no openness in public tendering. This isn’t a place where there’s any ease of doing business, any desire for growth.”

My Myers pointed to the

fate of his Freeport business venture, VTRade, as an example of what happened when the Government suddenly introduced new or increased taxes without warning.

“That’s what put us out of business in Freeport,” he recalled. “They increased Customs attendance fees, and implemented these stupid 1 per cent processing fees in and out. That put me out of business in less than a month-and-a-half.

“I fought it for 18 months before they revised half of it. They [the Government] have no understanding.

They’re not business people. They don’t have the cognitive ability to bring the business people in before they throw these harebrained plans down our throats.

“If they’re not smart enough to be in business, at least consult the business

community before you destroy it.”

Mr Myers said “clamping down” with regulations and taxes would only weaken economic growth, and added: “Look at Venezuela; tell me how that’s working out.

Look at Greece and Puerto Rico; tell me how that’s working for them...

“It’s [the IDB report] not surprising. I said it two years ago: We can’t have tax reform without fiscal reform. We can’t have VAT without fiscal reform. It was critical, number two on the list. Yes, we have to solve the immediate problem, but we must have fiscal reform.”

Mr Myers also expressed surprise that Khaalis Rolle, minister of state for investments, was continuing to meet with investors, given that the Bahamas “was strewn with red tape and on the verge of fiscal instability”.

Trump blasts trade deals, departing from GOP orthodoxy MONESSEN, Pa. (AP) — Donald Trump called for a new era of economic "Americanism" Tuesday, promising to restore millions of lost factory jobs by backing away from decades of U.S. policy that encouraged trade with other nations — a move that could undermine the country's place as the dominant player in the global economy.

The speech marked a significant break from years of Republican Party advocacy for unencumbered trade between nations, and drew immediate condemnation from GOP business leaders.

In his 35-minute speech, Trump blamed former President Bill Clinton and his wife, Democratic presidential rival Hillary Clinton for the loss of millions of manufacturing jobs.

He threatened to exit the more than two-decadeold North American Free Trade Agreement and vowed to withdraw from the Trans-Pacific Partnership, an agreement among 12 Pacific Rim nations that has yet to take effect.

He pointed to China as a source of many of America's economic woes, promising to label that country a currency manipulator and

slap new tariffs on America's leading source of imports, a decision with the potential to dramatically increase the cost of consumer goods.

"This wave of globalization has wiped out totally, totally our middle class," Trump said, standing in front of pallets of recycled aluminum cans on a factory floor. "It doesn't have to be this way. We can turn it around, and we can turn it around fast."

Delivered in a hard-hit Pennsylvania steel town, the speech underscored the central message of Trump's campaign: that policies aimed at boosting international trade — and America's intervention in wars and disputes abroad — have weakened the country.

It's an argument that found support among Republican primary voters, especially white, working class Americans whose wages have stagnated in recent years. Trump hopes it will yield similar success among the wider electorate that will decide the general election.

"I promise you, if I become president, we're going to be working again. We're going to have great jobs again," he said. "You're go-

ing to be so happy."

But he drew a quick and scathing response from the U.S. Chamber of Commerce, a traditional Republican ally and leading business lobby.

"Under Trump's trade plans, we would see higher prices, fewer jobs, a weaker economy," the Chamber said on its Twitter feed, directing readers to a blog post that said Trump's policies would lead to millions of job losses and a recession.

Many economists have dismissed Trump's promise to immediately restore manufacturing jobs as dubious at best, given the impact of automation and the many years it typically takes to negotiate trade agreements.

While renegotiating tougher deals with America's foreign trading partners might help some businesses, manufacturing as a share of total U.S. jobs has been slipping for several decades. The number of such jobs has risen slightly since the end of the Great Recession, but the introduction of robotics and access to cheaper foreign markets has reduced U.S. factory employment to a total last seen around 1941.

CALL 502-2394 TO ADVERTISE TODAY!

PAGE 6, Wednesday, June 29, 2016

THE TRIBUNE

Google offers new way for users to manage ads, personal data SAN FRANCISCO (AP) — Google is trying to make it easier for you to manage the vast pool of information that it collects about your online activities across phones, computers and other devices.

Among other things, a new privacy tool will enable the more than 1 billion people who use Google's search engine and other services to block certain ads from appearing on every device that they log into, instead of having to make a special request on each individual machine.

Some users of Google's search engine, Gmail and Chrome browser will start receiving notices about the new option beginning Tuesday, but it will take several more weeks before

it's available to everyone.

Google also is introducing a "My Activity" feature that will enable users to delete records of their online search requests and videos watched on YouTube in a single location instead of having to visit different websites or apps.

Google's business has been built on its longtime practice of monitoring its users' online behavior in an effort to learn about their interests so it can show ads most likely to appeal to them.

Those customized ads shown alongside Google's search results and the content on millions of other websites have turned Google's corporate parent, Alphabet Inc., into one of the world's most profitable

companies.

In an effort to minimize complaints about invading people's privacy, Google has long allowed its users to impose limits on how much data is accumulated about them and how many customized ads they see.

Last year, Google also opened a "My Account" hub to serve as a one-stop shop for setting privacy and security controls.

If they choose, users will now be able to authorize Google to store their web browsing histories in the "My Account" center.

Until now, Google had been keeping personal information in different digital dossiers that sometimes require users to take multiple steps to manage specific pieces of data.

A MAN walks past a building on the Google campus in Mountain View, Calif. Google is trying to make it easier for you to manage the vast pool of information that it collects about your online activities across phones, computers and other devices. Among other things, a new privacy tool will enable the more than 1 billion people who use Google’s search engine and other services to block certain ads from appearing on every device that they log into, instead of having to make a special request on each individual machine. (AP Photo) For instance, someone annoyed by a Google-generated ad on their personal computer can prevent it from appearing again by clicking on an "X'' in the

corner. Taking that step currently won't block the same ad from appearing on the targeted person's smartphone a few hours later.

Google says that will no longer happen if users allow it to stockpile web browsing histories in the "My Account" center.

Kremlin says it will take time to mend ties with Turkey MOSCOW (AP) — It will take time for Russia to mend ties with Turkey after the November downing of a Russian military jet, the spokesman for President Vladimir Putin said Tuesday.

Recep Tayyip Erdogan sent a letter of formal apology to Putin on Monday, seven months after Turkey shot down the Russian jet on a mission in Syria, triggering a slew of Russian sanctions that have dealt a blow to the Turkish economy.

Putin's spokesman, Dmitry Peskov, on Tuesday called the apology "a very important" step but added that the ties between the two countries would not go back to where they were overnight.

"Together we will have to take more than one step to meet each other," Peskov said. "One shouldn't think that everything will be mended overnight. We will keep up our work in that direction."

Putin will talk to Erdogan by telephone on Wednesday, which will be their first one-to-one chat since the jet was shot down, Peskov said. Erdogan's spokesman said the Turkish and Russian foreign ministers were expected to meet on the sidelines of a Black Sea regional cooperation meeting in Sochi this week.

Putin denounced the downing of the Russian warplane at the Syrian border on Nov. 24 as a "treacherous stab in the back."

Russia rejected the Turkish claim that the plane had violated its airspace, and responded by deploying longrange air defense missiles to its base in Syria, warning that they would destroy any target posing a threat to Russian aircraft.

The plane's downing came amid a rift between Moscow and Ankara over Syria, where they backed the opposing sides in the conflict.

Moscow moved swiftly to ban the sale of package

tours to Turkey, which had depended heavily on Russian tourists; banned most of Turkey's food exports; and introduced restrictions against Turkish construction companies, which had won a sizable niche of the Russian market.

In contrast to Peskov, Turkish Prime Minister Binali Yildirim said Tuesday that the ties are already improved: "We can say that the ice has melted and that the process of normalization has started."

Ibrahim Kalin, Erdogan's spokesman, said Turkey expected relations to return to where they were before the plane shooting incident, when the sides did not agree on a number of foreign policy issues — including on Ukraine, Syria and Crimea — but still maintained close economic relations.

Along with the formal apology, Moscow said it expected Ankara to pay compensation to the family of the killed pilot.

Asked about the possi-

ble compensation, Yildirim said in comments carried by the Anadolu news agency on Tuesday that Turkey was prepared to help the family of the slain pilot, but rejected the term "compensation."

MARKET REPORT TUESDAY, 87 JUNE 2016

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

BISX ALL SHARE INDEX: CLOSE 1,960.75 | CHG 0.00 | %CHG 0.00 | YTD 136.80 | YTD% 7.50 BISX LISTED & TRADED SECURITIES 52WK HI 3.62 17.43 9.09 3.50 4.70 0.18 8.34 8.35 5.84 10.60 15.50 2.57 1.60 5.80 8.25 11.00 7.82 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

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

LAST CLOSE 3.62 15.85 9.09 3.50 5.22 0.12 6.56 8.35 5.84 10.60 14.49 2.58 1.41 5.80 8.25 10.96 7.82 6.36 11.93 10.00

CLOSE 3.62 15.85 9.09 3.50 5.22 0.12 6.56 8.35 5.84 10.60 14.49 2.58 1.41 5.80 8.25 10.96 7.82 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 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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

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

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

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

115.33 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.58 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

VOLUME

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 11.9 11.7 8.4 15.9 N/M N/M 35.5 15.2 11.5 19.6 27.4 27.4 8.5 11.4 13.5 11.4 12.0 9.0 15.8 0.0

YIELD 2.49% 6.31% 0.00% 4.57% 0.00% 0.00% 2.85% 3.11% 3.42% 3.40% 4.21% 2.33% 2.84% 4.14% 3.33% 0.00% 3.58% 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

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

RUSSIAN President Vladimir Putin addresses the audience at the United Russia party congress which is being held three months ahead of parliamentary elections, in Moscow, Russia, last Monday. (AP Photo)

NOTICE

NOTICE is hereby given that DR. JULIAN A. STEWART of Carefree Apts., West Bay St.,P.O.Box N10273, 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 29th 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 WILDHJIM TILME of St. Cecilia, P.O.Box N8440, 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 29th 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 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.

PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, INDIRA ARSHIA FERGUSON of Tropical Gardens, P.O.Box EE-15732, New Providence, Bahamas intend to change my child’s name from JORDYN AALIYAH ISABELLE MOSELEY CULMER to JORDYN AALIYAH FERGUSON. If there are any objections to this change of name by Deed Poll, you may write such objections to the 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 DIANE CHARLOT of #58 Victoria Gardens, P.O.Box CR-56717, 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 twentyeight days from the 29th day of June, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Wednesday, June 29, 2016, PAGE 7

EU leaders push Britain to leave amid post-vote turmoil BRUSSELS (AP) — EU leaders pressed British Prime Minister David Cameron on Tuesday for a quick and clear plan for Britain's exit from their union, saying there's no turning back from last week's vote to leave despite worldwide uncertainty about the continent's future.

As leader after leader rejected Cameron's pleas for favorable conditions for Britain once it leaves, he frustrated them by refusing to initiate the divorce proceedings immediately. After what's probably his last dinner with EU counterparts, Cameron insisted he would leave the departure negotiations to his successor, saying London needs time to formally trigger the start of negotiations "Everyone wants to see a clear model appear" for Britain's future relations with the bloc, he said, adding that he "can't put a time frame on that."

German Chancellor Angela Merkel dismissed suggestions that Cameron's successor might not start the formal EU withdrawal process because of the financial turmoil prompted by the vote and wide confusion about how to extract a country from the EU. "I see no way to reverse it," Merkel said after Tuesday's meetings.

She said this is not the time for "wishful thinking."

EU Council President Donald Tusk said the bloc's leaders want UK exit plans "to be specified as soon as possible." Earlier, he said "Europe is ready to start the divorce process, even today."

During the earlier meeting, Cameron sat at one end of the oval summit table in blue shirt sleeves, arguing for the best possible exit conditions for his island nation.

Around the table, other EU leaders refused to negotiate, seemingly eager to kick Britain out as soon as possible to avoid further political and economic turmoil after the shock and emotion of the British vote to leave last week.

"We are not on Facebook, where things are complicated. We are married or divorced but not some-

BRITISH Prime Minister David Cameron, center, waits for the start of a group photo at an EU summit in Brussels yesterday. EU heads of state and government meet Tuesday and Wednesday in Brussels for the first time since Britain voted to leave the European Union, throwing British and European politics into disarray.

EUROPEAN Commission President Jean-Claude Juncker, right, greets UKIP leader Nigel Farage during a special session of European Parliament in Brussels yesterday. EU heads of state and government meet Tuesday and Wednesday in Brussels for the first time since Britain voted to leave the European Union, throwing British and European politics into disarray. (AP Photos) thing in between," Luxembourg Prime Minister Xavier Bettel added.

Outside the Council room, markets were still in upheaval as they sought to recover from the unexpected exit vote, which will rob the

EU of its biggest military power, its second economy and a diplomatic giant.

In a special session of the EU parliament hours earlier, there had been cries of campaign "lies" from legislators regretting the loss of Britain, and taunting by "leave"

A MAN walks by the New York Stock Exchange. U.S. stock indexes were solidly higher in early trading yesterday, as investors welcomed encouraging data on the economy and housing. The rebound followed even bigger gains in Europe as global markets recovered from a two-day rout triggered by Britain’s vote to leave the European Union. (AP Photo)

US stocks rebound as anxiety over British vote eases AP BUSINESS WRITER U.S. stock indexes mounted a broad comeback Tuesday as investors set aside their anxiety over Britain's vote to leave the European Union and snapped up shares following a two-day rout.

Encouraging data on the U.S. economy and housing market helped put traders in a buying mood. The broad rally followed even bigger gains in Europe, which also bounced back from the steep losses triggered by Britain's "leave" vote last Thursday.

Oil and gas companies led the rally as energy prices rose. Banks and other financial companies, which took the heaviest losses in the sell-off, also surged. Health care, consumer and technology stocks also notched gains. Bond prices fell, sending yields higher.

"We were due for a bounce heading into the morning; we had a couple of tough days there," said Sean Lynch, co-head of global equity strategy at Wells Fargo Investment Institute. "Investors are stepping up and seeing some areas that may have been oversold the past couple of days and redeploying some of their cash."

The Dow Jones industrial average gained 269.48 points, or 1.6 percent, to 17,409.72. The Standard & Poor's 500 index rose 35.55 points, or 1.8 percent, to 2,036.09. The Nasdaq composite added 97.42 points, or

2.1 percent, to 4,691.87.

Despite the rebound, the three indexes remain on track to end June in the red.

They're also down for the year.

European benchmarks had an even better day than U.S. indexes. Britain's FTSE 100 and France's CAC 40 each gained 2.6 percent.

Germany's DAX added 1.9 percent.

The euro and the British pound recovered somewhat, though the pound remained near the 30-year lows it plunged to immediately following the British "leave" vote.

Uncertainty and anxiety over the economic fallout from Britain's vote to leave the European Union had roiled global financial markets since Friday and prompted ratings agencies to slash their top-shelf credit rating for the U.K. Investors appeared to shake off their some of their jitters Tuesday. British Prime Minister David Cameron signaled he might not trigger a clause setting in motion the U.K.'s exit from the EU before October.

In the U.S., investors got a batch of encouraging economic data to consider.

The Commerce Department raised its estimate of U.S. economic growth in the first three months of the year. Separately, a key gauge of home values showed U.S. home prices climbed in April, hitting record highs in several cities.

In addition, the Conference Board said its measure of U.S. consumer confidence increased this month to the highest level since October.

"Obviously, the market isn't very receptive to uncertainty, but in some ways this uncertainty is providing the possibility and the consideration that what happened in the U.K. isn't necessarily reflective of, or an indicator of, a recession, especially here in the U.S. as well as globally," said W. Janet Dougherty, a global investment specialist at J.P. Morgan Private Bank.

Pharmaceutical company Endo International surged 18.3 percent, the biggest gainer in the S&P 500 index.

The stock added $2.50 to $16.19.

Xencor vaulted 32.1 percent after the drugmaker announced a partnership with Novartis to develop two cancer drugs. The stock rose $4.02 to $16.56.

Several energy companies also notched gains.

Southwestern Energy climbed $1.47, or 11.8 percent, to $13.89, while Devon Energy added $2.24, or 6.6 percent, to $35.99. Cabot Oil & Gas gained $1.93, or 8 percent, to $25.99.

Earlier in Asia, markets bounced back from early losses as leaders signaled they were ready to step in with support policies. Japan's benchmark Nikkei 225 index climbed 0.1 percent, while South Korea's Kospi added 0.5 percent.

campaigner Nigel Farage.

"You as a political project are in denial," declared Farage, leader of the anti-EU U.K. Independence Party. "When I came here 17 years ago and said I wanted to lead a campaign to get Britain to leave the European Union, you all laughed at me. Well, you're not laughing now, are you?"

When the traditional family photo of the leaders at the summit was taken, few were smiling.

Realizing the threat of a rift further tearing at the unity of a bloc of more than 500 million people, Tusk said he was planning a special meeting of the EU leaders in Slovakia in September to chart a way ahead. German Chancellor Angela Merkel pledged to use "all her strength" to prevent the EU from drifting apart.

The leaders of Britain's "leave" campaign hope the nation can still enjoy many perks of the EU internal market for business, while being able to deny EU citizens entry to the U.K. to address concerns about unlimited EU immigration.

The leaders of Germany and France, the bloc's biggest economies, made clear that isn't an option.

French President Francois Hollande said Britain will have to meet strict conditions if it wants to continue to be part of the single market.

Merkel said "Whoever wants to leave this family cannot expect to have no more obligations but to keep privileges."

Unshackled from Britain, the other EU members need to plot a common way ahead. Yet differences between founding nations in the west and newer members in the east are increasingly tough to reconcile.

Hungarian Prime Minister Viktor Orban railed against EU migration policies, which played a major role in the British referendum.

"If the EU cannot solve the migration situation, then the challenges we experienced now in the case of the United Kingdom will grow," he said.

Central European nations led

by Hungary refuse to accept the imposition of EU refugee quotas.

Further north, Austria, Germany, Sweden and Denmark have all tightened border controls in response to the arrival of more than 1 million migrants last year. Their entry overwhelmed Greece and Italy.

First, though, the EU needs to get rid of Britain.

EU Commission President JeanClaude Juncker and other European leaders insist they won't begin any talks until Britain invokes the Article 50 of the EU's Treaty of Lisbon, which sets in motion a two-year process to split from the group designed to unify Europe after the horrors of World War II. Juncker said he had banned his policy commissioners from holding any secret talks with Britain on its future until London triggers the exit clause.

"No notification, no negotiation," he said to resounding applause.

The reaction to Britain's vote to exit the EU was at times acrimonious. Farage was booed and jeered when he urged Europe to give Britain a good trade deal when it leaves, saying jobs in Germany's auto sector might be at stake if it doesn't.

"Why don't we just be pragmatic, sensible, grown-up, reasonable ... and cut a sensible tariff-free deal?" Farage asked.

In a speech interrupted several times, Farage warned: "The U.K. will not be the last member state to leave the European Union."

Bearing out his words, French far-right leader Marine Le Pen called the British vote "an extraordinary victory for democracy — a slap for a European system based more and more on fear, blackmail and lies."

Despite such attention-grabbing comments, it was Scottish EU Parliament member Alyn Smith who received a standing ovation with his emotional speech noting that a majority of Scots voted to stay in the EU.

PAGE 8, Wednesday, June 29, 2016

THE TRIBUNE

TREASURY Secretary Jacob Lew, joined by Sen. Ron Wyden, D-Ore., ranking member of the Senate Finance Committee, left, speaks to reporters on Capitol Hill in Washington, Tuesday, June 28, 2016, warning of widespread consequences if the Senate fails to act before Friday on a rescue package for debt-stricken Puerto Rico. The U.S. territory is in a decade-long recession and owes a $2 billion debt payment to creditors on July 1. (AP Photo)

Lawmakers promise to complete rescue package for Puerto Rico WASHINGTON (AP) — Senate Republican and Democratic leaders on Tuesday promised to complete a rescue package for debt-stricken Puerto Rico before a $2 billion debt payment comes due on Friday.

"Failure is really not an option," Majority Leader Mitch McConnell, R-Ky., told reporters after meeting with his GOP caucus. Separately, Treasury Secretary Jacob Lew lobbied Democrats to back the package in a last-minute bid to secure the votes and help the U.S. territory with its crippling $70 billion debt.

The package, backed by the White House, Democrats and Republicans, would create a control board and restructure some of the debt. A vote is scheduled on Wednesday.

Lew met with reluctant Democrats and urged them to vote for it, even though he said it isn't perfect.

"The fact that this works

and it gives Puerto Rico the ability to move forward is just an overwhelming reason to pass this in a timeframe that prevents the descent into chaos," Lew said.

Senate Minority Leader Harry Reid, D-Nev., backs the legislation. At least one reluctant Democrat signed on.

"I'm not going to let the adequate be the enemy of the barely sufficient," said Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee.

But at least one Democrat remained staunchly opposed. Sen. Bob Menendez of New Jersey monopolized the Senate floor for several hours to protest the legislation that he warned adopts a colonial approach to the territory.

Menendez said ordinary Puerto Ricans get little say and the package favors hedge-fund creditors over island pensioners. Menen-

dez vowed to speak for several hours though his effort wasn't a true filibuster since a vote had been scheduled.

"I think the 3.5 million United States citizens who call Puerto Rico home deserve more than being jammed in a legislative process where their lives and their futures are going to be dictated by some time by a control board," Menendez said.

The House is out of session until July 5, so the Senate will have to pass the House bill unchanged for it to head to the president's desk for his signature before the Friday deadline.

Lew and Puerto Rican Gov. Alejandro Garcia Padilla made last-minute visits to Capitol Hill to lobby for votes. While the legislation has support from the Obama administration and Senate Republican and Democratic leaders, some senators in both parties said they would oppose it.