The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Cabinet Minister yesterday said the Government was not seeking to absolve “big borrowers” of their debt to the Bank of the Bahamas, after an MP questioned its philosophy regarding troubled smaller borrowers.

Marco City MP, Gregory Moss, told the House of Assembly that smaller borrowers were facing foreclosure on their homes and being hauled before the courts.

“I again appeal that we need to have a conscience not just for the big people but also for the small people,” Mr Moss said.

“We have people who have been dragged before the courts on behalf of Bank of the Bahamas,” he added, explaining that he was not taking issue with the bank but assessing the Government’s involvement, as relief should not simply be for larger borrowers but smaller ones as well.

“We cannot put our people on the streets. We cannot continue to see this destruction of the middle class we are seeing. The same mentality that went into taking the burden off the bank in terms of the big loans, where is that mentality with the small loans, the people who can least afford it,” queried Mr Moss.

The Government, Bank of the Bahamas’ 65 per cent majority shareholder, last year rescued the institution through the creation of a new entity, Bahamas Resolve, which has taken $45.2 million in troubled loans off the bank’s books.

Deloitte & Touche was selected as the accounting firm charged with collecting on the 13 ‘bad’ commercial loans formerly belonging to Bank of the Bahamas, and which were transferred to Bahamas Resolve.

Michael Halkitis, minister of state for finance, responding in Parliament to Mr Moss’ comments, said: “The removal of the large loans was in no way intended to absolve big borrowers from their responsibility. As we speak today, Resolve is pursuing those borrowers. Resolve is actively pursuing those large borrowers so that they can fulfill their obligations.”