The Tribune

By NEIL HARTNELL

Tribune Business Editor

BAHAMIAN commercial banks and the Government are still at the exploratory stage of trying to find "common ground" over the latter's mortgage relief plan, Tribune Business can disclose, with nothing finalised yet.

Banking industry sources have revealed to this newspaper that the two sides are talking to each other in a bid to produce something that "suits everybody", but the Government's initial mortgage relief plan is still regarded as unworkable by the sector.

"We are exploring how we can find some common ground in meeting the Government's expectations, and doing something prudent and sensible from the banks' point of view," one high-level source, requesting anonymity, told Tribune Business.

"We're still exploring what's possible and what's not. We're working closely with the Government to produce something that suits everybody's needs. The original plan is not possible."

That had sought to strike an agreement with banks and institutional lenders to write off unpaid interest and fees for homeowners facing foreclosure, in return for government guaranteed interest payments for five years.

The proposal also included working with banks and lenders to implement a 120-day moratorium on foreclosures, and extend the loan repayment period under defaulting mortgages.

Minister of State for Finance, Michael Halkitis, told Tribune Business last week that initial comments from private sector lenders on the Christie administration's proposed mortgage relief plan have been "very positive", with the Government likely in a position to formally present the plan before Parliament's summer recess.

He said: "We have had discussions with the financial institutions, who have submitted their thoughts to us on how they think the plan should operate, and what they think would be a financially feasible plan. What we are doing is putting all of that information together. We are going to sit with them in a formal consultation and come up with a plan. We are hoping to do that before we break for the summer."

He added: "Our plan calls for, at the very beginning, consultation with the financial institutions and working with them. That is what we are doing. We are getting their ideas on how they think it can work.

"At the end of the day we are going to come up with a plan they are comfortable with, we're comfortable with, one that can help people and it doesn't bankrupt the country. We are doing that right now, and before we break for the summer we should be able to present the plan we are proposing and how it's going to work, so we can get down to the business of helping people."