Bahamas facing Moody's downgrade threat in two months

As of Monday, July 4, 2016

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Bahamas faces the prospect of a fresh credit rating downgrade within the next two months, after Moody's was stunned by data showing two consecutive years of recession.

The Wall Street rating agency announced on Friday that it was placing the Bahamas "on review" for a potential downgrade, due to both its unexpected economic contraction and further deterioration in the Government's fiscal position.

Moody's move appears to have been sparked by Prime Minister Perry Christie's affirmation of official Department of Statistics data showing that the Bahamian economy contracted by 1.7 per cent in 2015, following a 0.5 per cent shrink in 2014.

This contrasted sharply with previous positive growth estimates by both the Government, itself and the International Monetary Fund (IMF), prompting Moody's to determine that the Bahamas is "unlikely" to hit its 1.5 per cent GDP growth potential in the short-term.

Apart from its shock at the revised negative growth numbers, Moody's 'review' also appears to have been sparked by concerns that the Christie administration's consolidation plan has yet to arrest the growth in the $6.6 billion national debt and related ratios.

It pointed out that "debt accumulation" has continued to increase, with the Government's direct debt-to-GDP ratio growing by five percentage points in two years to hit 65.2 per cent at the June 30 end to the 2015-2016 fiscal year.

And Moody's also appears concerned that the Christie administration consistently fails to hit its Budget projections, and the adequacy and effectiveness of its policy responses to the Bahamas' problems.

"The decision to place the ratings on review was prompted by the continuing rise in risks to the country's medium-term economic prospects and to its fiscal strength, notwithstanding the Government's ongoing fiscal consolidation programme," Moody's said on Friday.

"The review will allow Moody's to assess the likelihood that economic growth prospects will improve, debt metrics will stabilise and government policy will effectively address its macroeconomic and fiscal challenges."

Of particular concern to the Bahamas and its economy, Moody's warned that any potential downgrade could be "by one notch or more". It currently has a 'Baa2' rating on this nation, meaning the Bahamas is two notches away from being cut to so-called 'junk' status - a position where it will lose its existing investment grade status.

Moody's announcement on Friday thus bring it more into line with its 'fellow traveller', Standard & Poor's (S&P), which presently has the Bahamas just one notch above 'junk status'. This thus raises the possibility that the Bahamas could be downgraded to 'junk' by both international credit rating agencies almost simultaneously.

The country has until August to convince Moody's otherwise, and is also in the middle of the 'six-24 month' period set by S&P to determine whether it, too, will follow through on the "greater than one-in-three chance" of a Bahamas downgrade.

Much will now depend on what happens when both Moody's and Standard & Poor's (S&P) visit the Bahamas this month to conduct their annual economic and fiscal assessments, and meet with key Government and private sector officials.

The key will be for the Christie administration to convince both rating agencies that its economic growth and fiscal policies are up to the task, and will deliver the results promised to both them and the Bahamian people.

The loss of ‘investment grade’ status would be highly damaging for the Bahamas and its economy, as it signals to the international capital markets that this nation’s creditworthiness is slipping. As a result, the Government will have to pay more for current and future debt issues, raising its debt servicing (interest) costs, and sucking money away from essential public and security services.

A downgrade to ‘junk’ could also deter investors assessing the Bahamas as a place to invest, as it raises questions about the Government’s economic management.

Moody's on Friday confirmed that the potential downgrade was in the offing between now and August, and that "the change could be by one notch or more".

"On 30 June, 2016, a rating committee was called to discuss the rating of the Bahamas Government," it added. "The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have decreased. The issuer's fiscal or financial strength, including its debt profile, has decreased."

Moody's continued: "Moody's could downgrade the rating if the review were to conclude that government policy and strategy is unlikely to lead to a stabilisation in the debt trajectory over the next two years. Evidence of further shocks to growth that would make further fiscal adjustment more difficult would also be credit negative. More generally, indications that the slowdown in growth will be even deeper and more protracted than currently expected would be negative for the rating."

The Bahamas' sovereign creditworthiness would stabilise at the current 'Baa2', Moody's added, "if the review were to conclude that the Government's policy response will support the strengthening of the Bahamas' economic and fiscal strength" such that it comes into line with similarly rated nations.

Top of Moody's 'priority list' is to determine whether the Bahamas' medium-term economic growth prospects will improve. The Government is projecting a modest GDP expansion of 0.7 per cent in the upcoming 2016-2017 fiscal year, followed by a slightly more robust 1.6 per cent in 2017-2018.

"The first driver for the review is to allow Moody's to assess the likelihood that the decline in the Bahamas' economic strength will be reversed over the medium term," the rating agency said on Friday. "According to the latest national accounts report published by the Bahamas' Department of Statistics in June 2016, the Bahamian economy grew on average by 1.2 per cent in 2010-2013, and then output contracted in both 2014 and 2015 by 1.1 per cent on average.

"This contrasts with previous assessments published in 2014 and 2015, when GDP had been estimated to have grown on a consistent basis."

After getting over its shock at two years of consecutive recession, Moody's turned to the symptoms of the Bahamas' economic malaise. "The worsened economic performance is characterised by persistently high levels of unemployment, stagnant credit to the private sector and declining investment, in part explained by the indefinite opening of the Baha Mar mega resort," it said.

"Additionally, structural constraints related to the energy sector and labour market negatively impact costs for the tourism sector, which accounts both directly and indirectly for about 50 per cent of GDP. Given that these conditions are likely to persist in 2016 and 2017, Moody's considers that it is unlikely that the Bahamas will return to its potential growth rate of about 1.5 per cent in the short-term."

Moody's pledged that its review "will assess the volatility in GDP estimates reported in recent years", implying that it will review its own projections as well as those given by the Government and Department of Statistics. It will also "examine the Government's plans to put forward growth-supporting reforms, including the upcoming National Development Plan and a mortgage relief plan, to boost economic performance past 2017".

"Moody's review will also look at the Bahamas' level of competitiveness relative to other similar economies to gauge the effect this has on its economic strength," the Friday release added.

Given that Moody's will be probing 'sensitive' areas where the Bahamas has not fared too well in recent years, a downgrade appears increasingly likely.

The rating agency, though, said the second area it will focus on is how likely the Christie administration is to "stabilise its deteriorating debt metrics and restore fiscal strength".

"The second driver of the review is to allow Moody's to assess whether the Government's debt ratios are likely to stabilise," it explained. "The Bahamas' government debt-to-GDP ratio has continued to rise since we downgraded the sovereign's ratings to Baa2 and stabilised the outlook to an estimated 65.2 per cent of GDP by the end of 2015-2016, from 60.2 per cent in 2013-2014.

"Although the Government has been able to reduce its fiscal deficit by introducing a Value-Added tax in January 2015, debt accumulation has persisted, weakening the Bahamas' fiscal strength relative to Baa-rated peers. At low (-), the Bahamas' fiscal strength is the lowest in the Baa rating category."

Moody's is thus the latest to state that VAT by itself is not a 'cure all' for the Bahamas' fiscal woes, and its statement will again raise questions as to whether the increased revenues are being applied to reduce the deficit and national debt.

"Moody's will examine the macroeconomic and fiscal conditions that would support the stabilisation of the Government's debt metrics," the rating agency said. "Moody's will also assess the Government's plans to rein in expenditures over the medium-term and what, if any, additional revenue measures may be implemented to further support the fiscal consolidation efforts."

The Christie administration has pledged to reduce recurrent 'fixed cost' spending as a percentage of GDP from a peak of 25.3 per cent in the upcoming fiscal year to 22.8 per cent by 2018-2019. However, recurrent spending for 2016-2017 is forecast to rise by $166 million year-over-year, or 7.7 per cent, increasing from $2.155 billion to $2.321 billion.

Moody's said the third, and final, strand of its review will be to assess the effectiveness of the Christie administration's policy response to its economic and fiscal challenges.

"The third driver of the review is to allow Moody's to assess the Government's policy credibility and effectiveness in response to the ongoing macroeconomic and fiscal challenges," it said. "During the review, Moody's will examine fiscal performance in recent years relative to Budget targets, and the effectiveness of fiscal measures introduced to support deficit reduction efforts.

"Moody's will also look at banking sector regulation given the persistent high level of non-performing loans, as well as the Bahamas' anti-money laundering/counter-terrorism financing framework in the context of heightened scrutiny of offshore centres and de-risking in correspondent banking."

Loretta Butler-Turner, the Free National Movement MP for Long Island, described the announced review and possible downgrade as “another disturbing sign of the catastrophic failure of leadership on the economy by the PLP, led by Perry Christie, who has proven to be a spectacular failure as Prime Minister and as Minister of Finance”.

She attributed the lack of growth in the economy, the unemployment level and “the daily suffering of scores of Bahamians” to “gross mismanagement” of the economy by the Progressive Liberal Party. “Our economic woes are not mostly because of external factors. We are in a downward spiral because of the policy blunders and incompetence of the Christie administration,” she said in a statement. “A delusional prime minister kept painting a rosy picture as the economy worsened and dark clouds settled over the country’s future. In successive budgets the PLP government projected growth.

The Democratic National Alliance reacted to the Moody’s announcement with sadness, suggesting that from all indications an actual downgrade is very possible.

John 7 years, 9 months ago

DID THE CHINESE STEAL the BAHAMIAN economic recovery? Last year and earlier this year when I suggested that the Bahamas economy was contracting and may be headed for another recession despite not recovering from 2008, persons said I was too negative and should not speak evil on the Bahamas. But now some months later the country is facing a downgrade, maybe even to junk status. Nothing to take lightly at all but was it something of our own doing? For example even with Bah Mar not yet opening would things be a lot different if only 1/3 of the labor force for that project was Local Bahamians? If only $500 million of Bah Mar's labor money had trickled into the economy, it would have been enough to stimulate the 1.5% growth that was need over the past two years. So what caused this government to enter this agreement with the Chinese? Why is the same thing been done at 'The Pointe' ? What China is doing is growing its economy by exporting its unemployed workers all around the world, not just the Bahamas and they use Chinese labor and Chinese financing and Chinese materials and for some reason the projects hardly get completed and never on time Not unlike Bah Mar and so there is no benefit to the host country. So the projects sit incomplete and idle as if in mockery to the local people. But what did the government do to stimulate the economy when it was patently clear Bah Mar was not opening on time and may not even open soon. Businesses were closing down left right and center even before this government came to office. More businesses have closed since 2008 probably than any other time in Bahamian history. Some of the only stores have closed in some family island settlements and in some of the inner city communities leaving residents to have to travel great distances for basic necessities. And the unemployment has increased and the crime sky rocketed. But government never once looked at the local economy. They never sought to rescue local businesses and save jobs, but instead they piled on tax after tax after tax. Then they stood up and bragged about how much they had raped from the Bahamian economy and the Bahamian people and the local Bahamian business, and the Chines are asking for more tax breaks, and more concessions and more work permits and now even citizen ships, when not even one guest has slept in Bah Mar yet and should it surprise you or anyone else that the country credit rating is under pressure to go to junk status even? You ain't serious! Yet the government in the media almost everyday about how much better managers they are of the economy than the previous government. Explain how they collecting the largest amount of taxes from local Bahamians while the entire country is experiencing its highest rate of employment and projects like Bah Mar and Freeports port authority and others are getting the greatest amount of tax breaks and concessions and you ain't know why my light off. You ain't serious

Abaconian 7 years, 9 months ago

But if you ask Perry Christie, Brave Davis and and the rest of the crew they will tell you how everything is fine and how the economy is healthy and growing!! It's an absolute joke. You can't script this stuff.

Bahamians, please, I am begging you to wake up and make noise. The PLP are only able to spout such nonsense because most of what they say goes ignored or unchallenged by the Bahamian public. Indeed, even the opposition has been playing a disgracefully weak roll in holding the PLP's feet to the fire over the last 4 years. This government is destroying the economy and every aspect of social life faster than I could ever imagine.

And the nerve of Perry Christie the other day calling for future leaders of the country to undergo some sort of "test" or some method to determine whether they are fit to run the country. Christie... YOU ARE UNFIT TO RUN THE COUNTRY. What planet are these people living on!?! Have they spoken to business owners lately? Have the looked at the figures? We are in NEGATIVE growth, and have been for some time. Our debt to GDP ratio is at a dangerous level. Our credit rating is near Junk status. Even if this gov. wants to continue to borrow money without any foresight, soon we won't be able to because no one will want to lend it to us! And the PLP has the nerve to tell us about all the supposed benefits of their nonexistent "economic plan" and how much revenue has been raised from VAT.. LOL. These people are utterly clueless.

This country is in SERIOUS, SERIOUS financial problems. I don't think the Bahamian populace truly grasps how serious the matter is. They'll know when our currency gets devalued, when investors roll out, when the gov. tries to ban how much money bahamians can take out of the country, when crime gets even worse, when education gets even worse, when even less jobs are available.. That is where we are headed folks. It's going to get real, real ugly unless radical change comes very soon.

banker 7 years, 9 months ago

In reference to John's points about the Chinese & Baha Mar, what most people do not realise, including the government, is that the Chinese gained economic benefit, not by having a completed Baha Mar, but by exporting labourers, raw material and lending money to intramural companies (EXIM to CCA) to stimulate their internal economy. They don't give a damn about finishing. They have reaped economic benefit from construction supplies, human capital, monetary capital interest, political capital and a whole host of other on-balance and off-balance sheet things that do not relate to the successful completion of Baha Mar. The Chinese have unfinished construction projects strewn all over the world.

So Baha Mar failed. The Chinese would rather have it in limbo, holding the liens rather than an entrepreneur coming and using American capital. That would diminish their economic and political clout on America's doorstep. So they will continue to do nothing, and if the Bahamian economy languishes, it is no skin off their back. They already have what they want.

As for the domestic economy, a couple of more years of the same, and I can see the Bahamian dollar exchanging at about $0.35 cents to the US dollar.

All of the smart Bahamian money has already left. Just read the Panama Papers for the Bahamian companies and Bahamian names who have exported capital out of the country into Panama.

Economist 7 years, 9 months ago

Agreed, well said.

ThisIsOurs 7 years, 9 months ago

A friend of mind said the same, he said Bahamar is a "Chinese jobs program", I guess a 676 weeks (52x13years) jobs program

paul_vincent_zecchino 7 years, 9 months ago

Well said. Not to mention ominous. Concur. Completely.

Sounds as if these unfinished projects are part of the chicom's strategy of practicing asymmetrical warfare to gain control over target nations.

banker 7 years, 9 months ago

Sounds as if these unfinished projects are part of the chicom's strategy of practicing asymmetrical warfare to gain control over target nations.

You are absolutely correct. Holding the loans forever on unfinished projects is economic warfare. You can't go forward and you can't back out.

John 7 years, 9 months ago

Well at least if our government had not interfered Izmirilian would still have possession of Bah Mar. The property would have most likely been finished, Bahamians would be employed and the Chinese would have been held at bay for two to three years. At least Bah Mar would have been given time to catch its bearings, test the market and determine if it was a sustainable operation. And even if the Chinese had to repossess it after three years there would have been some economic benefit to the Bahamas economy and it would been clear that Bah Mar failed on its own and was squeezed by its financial 'gonards' by the Chinese. But as it sits there today unfinished and unopened and its future uncertain, only the Chinese have benefitted. Perry Christie needs to stop going to China bank and bowing down on behalf of the Bahamian people get to stern negotiations. And no more concessions and definitely NO Citizenships!

John 7 years, 9 months ago

But taking Bah Mar out the mix for a second there are small, simple, not expensive things the government can do to stimulate the local economy and develop inter-island trade and economic activity so that the Bahamian economy is not so harnessed to the US' economy and the world economy and there are some degrees of freedom. For example there are some 30,000 Bahamians in this country on welfare. Yet a large percentage of what is grown in this country goes to waste. So let's say rather than just giving cards to spend in the food store, each welfare revue pant gets vouchers to get 10 pounds of produce each week from strategic outposts, preferably run by private enterprise. That is 300,000 pounds of produce that can be moved weekly and get money flowing back into the family islands. Then let's go a bit further and include 5 # of fish and 5# of conch a week, keep following. Then let's say the seafood has to be cleaned and processed, that is ready to cook. Can n our fyou see the number of jobs created already? And no foreign person has to be hired yet. But wait chicken and eggs are also produced locally. So we include them in the mix and in five years our fishing and farming sectors can be booming and that can stimilate then entire economy with only seeds, fertilizer and animal feed being imported. PLEASE. Don't squeeze the mangoes

TalRussell 7 years, 9 months ago

Okay Comrades finish your sentences...Bahamaland's Golden Goose does lies in the masses electing Loretta and Dr. Duane, come the 2017 General?
You really think it's going be so simple to right-side Bahamaland's Economic Ship of State?
Have these hereto Tribune blog pages being turned into a Disney of The Land of Fantasy?

realfreethinker 7 years, 9 months ago

So you think re-electing perry is a better oiption Tal ? If that is your logic you are as delusional as perry is

TalRussell 7 years, 9 months ago

Comrade, the typical red game of refusing the answering of a question put to them by sidestepping with the asking of another.

ThisIsOurs 7 years, 9 months ago

Nice attempt to take the focus off this failed government. I truly wish they were honorable and would simply say, we don't know what we're doing, assemble all the old wise men and let's save the Bahamas

MonkeeDoo 7 years, 9 months ago

If one could understand Tal one would know what he is trying to say. we cannot say that Bahamians have not benefited from Baha Mar or the Chinese because both of Perry Gladstone Christie's sons is Bahamian and both have benefited very generously from Baha Mar waterways as well as the Hilton sale to the Chinese. Its just the poor and downtrodden Bahamian's who they stopped believing in who have been screwed, blewed and Tattewed. And don't forget Brave cuz he getting his all round. And the next two and then the next two and so on and so forth. And when the dollar devalue's their's will be in US greenbacks and ours will be right here. Christie will head up to Atlanta with the wife and kids and all a wee will be waiting to get a new passport. Bahamian's could bend over now and take it from behind.

Well_mudda_take_sic 7 years, 9 months ago

Perry's legacy....the financial destruction of the Bahamas through greed, graft and corruption!

We got plenty of organized crime on every street corner...the numbers' bosses and their gaming webshops have opened new store after new store.....with nothing going into our public treasury....and you can hear the swooshing sound of their Bahamian dollar revenues being converted to US dollars.

And we've got that Big Baha Mar White Elephant that Christie has created in order to line his pockets and the pockets of his political friends and business cronies with all sorts of "goodies" from his Chinese friends.

alfalfa 7 years, 9 months ago

It is obvious that a threat by Moody's to downgrade the country means little or nothing to our governments. However, i doubt that Izmarilan would have completed the project and run it successfully. If I recall correctly he was unable to come up with the 175 million purchase price for the original property, and was assisted in obtaining finance from Scotia Bank by the then government. When it came time to repay this loan he had to resort into giving Scotia shares in lieu of repayment. Does anyone really think that he could repay a 3 billion dollar loan?

TalRussell 7 years, 9 months ago

Comrades I never said Baha Mar by a Papa Hubert or Christie regime was a smart way for the state's One Billion Dollars to have been used effectively.
I am not prepared to just blame the one former law partner and not the other. In fact, Papa's signing off on the Billion amounted to 3/4 of the Billion handed over to Izmirlian?
Would Comrade Bloggers Economist and his Banker friend, care tell me how much, if any, of the state's Billion actually ended up with the Chinese?
Nonsense I says.. cause ya'll is talking poppycock red economics.
I mean to play fair,shouldn't the political ambitions of Papa and Loretta also be crushed now before it's too late come the 2017 General - both having been at the cabinet table when the 3/4 Billion dollars was being hided off to Baha Mar?

banker 7 years, 9 months ago

My dear Tal, if you knew anything about economics at all, you would be aware of something called "The Solow Model" of economic growth. It is a principle of macroeconomics dedicated to long term economic growth irrespective of business cycle fluctuations.

What Hubiggety was doing, was creating the inputs for GDP growth. The Solow equation: Y = AF(K, L) where Y is is the GDP growth, K & L are the Capital & Labour inputs, F is the functional relationship of economic growth to capital and labour. A is the exogenous parameter related to technology or external factors (in the case of Baha Mar it is negative due to the mental retardation, stupidity, and gullibility of Perry Gladstone CriscoButt) .

So the economy was not growing and it required capital inputs according to economic principles, and that is where your fabled billion comes in. You need to spend it to make it.

It really doesn't matter who's pocket the initial investment ends up in, as long as it is generating economic activity.

If you recall, Hubigetty tried to diversify the economy with his "Third Pillar" platform along with the first equality referendum, only to be defeated at the hands of the PLP (Pernicious Lascivious Perverts) and came to the realisation that you can't make a silk purse out of a sow's ear with the human capital available to him thanks to the education policies of said PLP.

So, the only way to invest in GDP growth, was the tired old chestnut of tourism. PLP Bahamians were useless at math and science and learned stuff, but they could be taught to pull da curtain, sweep da floor and take da bags out to da taxi.

Anything else in trying to paint Hubigetty with the Baha Mar debacle, is pure sophistry on your part, and I think that you are intelligent enough to know that.

Fweddie has stated that he thinks that his fellow Bahamians are low fences and for all I know you might even be Fweddie. However the PLP techniques of shifting blame and such that work so well to confuddle up the PLP supporters, doesn't work here.

The difference between the law partners, is that one is a brain dead zombie surrounded by thieves & cutthroats, and the other is a bullheaded patriot surrounded by minions toting cut hip from his wrath.

TalRussell 7 years, 9 months ago

Comrade Banker, anything you can say in trying to paint Papa Hubert as being qualified to have ran the finances of Bahamaland as finance minister, is the poorest of sophistry on your part, and I think that you are sufficiently intelligent enough to know that?

banker 7 years, 9 months ago

In the land of the blind, the one-eyed Jack is King. His finance minister Sir William Allen delivered the only balanced budget in Bahamian history after the cocaine excesses of Lynden Oscar Swindling.

Hubiggity knew that the economy had to be diversified, and the forces of evil campaigned against it. He gave independence to the Central Bankers only to have the PLP leash them again.

He knew that the economy had to be kickstarted and he did a complete infrastructure renewal after years of PLP neglect.

Put that in your finance pipe and smoke it. Hubiggity was and wasn't many things, but he was a patriot who did the right things with the limited human capital that he had and the mafia criminality of the opposition that he faced.

Diverting conversation by asking other questions -- you too are guilty of the sins that you accuse others of. You have eyes but fail to see and ears but fail to hear. Pity. The Bahamas could have used more patriotic voices while Swindling was tearing apart the very social fabric of what made Bahamians wholesome -- the Truth.

John 7 years, 9 months ago

Imagine if every mail boat that goes to a family island does not return to New providence empty, but laden with local produce, not only destined for New Providence but for other Family Islands. How many additional hands will these mail boats have to add? How many mail boats will have to be added. Imagine small cargo planes taking Bahamian produce, eggs and chicken and fish and bananas and tomatoes to every part of this country and bringing back perishables to transport to other islands. Why does salt have to go all the way to the US to be processed and come back here at 10 times the price? Why should the average Bahamian have to subsidize the vacation for a tourist staying on Paradise Island or Cable Beach or in Freeport when the average Bahamian cannot afford these vacations themselves?

John 7 years, 9 months ago

Well when the US brought sanctions against Jamaica and there Janaican dollar was devalued, the Jamican economy was saved, even though it hit rock bottom a few times, because there were so many Jamicians living outside of Jamaica, USA, Canada Great Btitian, and these persons sent money home frequently. So this had a reverse effect because every US dollar or Canadian dollar or British pound sent to Jamaica had almost 100 times the value. In the case of the Bahamas we are so tied to the US and China made American products it may be the reverse. Then most Bahamians who leave the Bahamas don't look back

alfalfa 7 years, 9 months ago

Does anyone really think that our governments care about a Moody's downgrade. Regarding Ismirilian and Bahamar ,if my memory serves me correctly, he was unable to raise the 175 million required to purchase the original property which the then government gave him at a steal. With their assistance he was able to obtain financing from Scotia Bank, but when the time came for him to repay this advance, he was unable to do so and Scotia had to settle for becoming an unwilling participant in shares of Bahamar. Would he or could he manage this venture and repay 3 billion dollars? FAT CHANCE.

The_Oracle 7 years, 9 months ago

"The difference between the law partners, is that one is a brain dead zombie surrounded by thieves & cutthroats, and the other is a bullheaded patriot surrounded by minions toting cut hip from his wrath". I concur Banker, but would suggest "Bullheaded Micromanaging Patriot surrounded by Minions
toting cut hip to avoid victimization." Victimization that was not limited to those within the political arena.

SP 7 years, 9 months ago

.................................... Jackass Reaps As Jackass Sows .........................................

Hubert Alexander Ingraham and Perry Gladstone Christie.

Two colossal, incompetent, corrupt Jackass's that drove the Bahamas into the ditch!

dfitzerl 7 years, 9 months ago

Yes, Baha Mar is a chinese jobs and materials program (as is the case with all their foreign financed projects - you can't fault their strategy) but what you miss is that the program is intended to be paid for by the mortagee. It helps them none to forclose and have it sit idle. It needs to be making payments or they gave away free labour and materials.

Our issue is that we don't have a strategy. We simply believe that a shotgun approach to FDI is our saviour. We have no clue about how to empower our own to venture into international markets. Domestic market activities do not add wealth, it only redistributes wealth. This is not rocket science but our leader(s) apprear oblivious to this as consecutive administrations continue to play the "keep em dumb and barefoot" game. And tax them into poverty.

Sickened 7 years, 9 months ago

Dear Bahamians, The problem is that VAT was implemented at a rate that was too low. If it was implemented at the rate we first wanted (15%) then we would not be in this mess.

Given the above, we will be moving to increase VAT to 15% once we get reelected. I guarantee that within the first 100 days of reelection our national debt will begin to improve.

Yours truly, Minister of Finance (aka dumb as doo doo)

bubbaslp 7 years, 9 months ago

WHO REMEMBERS THE ROYAL OASIS??

TalRussell 7 years, 9 months ago

Comrade Banker we can agree the first Papa Hubert regime ushered in a breath of fresh air. Unfortunately, it was the beginning of Papa Hubert's downhill tumble from good government. I guess if you were blind thereafter one can see why you're so forgiving of the Papa regime's many blunders? Did I mention acting all dictatorial while ignoring the working Bahamalanders concerns?
I couldn't disagree with you more on the former minister of finance's contribution - that is unless I view it from a Montagu mentality, which I know you know I would never concede anything to the well established and lives on Montagu mentality.

banker 7 years, 9 months ago

I don't mind blunders -- that is part of the human condition, and if someone fails while trying for a noble cause -- we all do that in our journey of Life. But the unforgivable is the criminal, and that describes every PLP government that this archipelago in the sun has ever known.

I understand that you are a PLP apologist, and nothing said or done, or even if your brain was seared in the crucible of Truth, nothing will excise the cult 666 PLP chip in your brain. You probably benefited monetarily while the rest Bahamians wallowed in the trough of the disenfranchised, consigned there by the very people that they elected to uplift them.

We could have had a much more enlightened and prosperous Bahamas if that Jamaican-born Haitian named Pendelaine never set foot on our soil.

TalRussell 7 years, 9 months ago

Comrade Banker, if what you claim about Pindling is factual, then pray tell me why in the hell didn't Papa Hubert use his most powerful prime ministerial influence to have charged and put Pindling on trail?
Why didn't he? You may not have known about how Papa Hubert wasted no time using that exact same influence to have dispatched a tow truck to re posse the former PM's government issued car?
PM Pindling was often spotted on many a day, even late into the evening, hitchhiking to make his way abouts and arounds Nassau Town. I myself gave the former PM at least three rides to drop hum off at Rawson Square.

realfreethinker 7 years, 9 months ago

With all that drug money he could have bought a fleet of vehicles with chauffeurs. I can't be sorry for him

banker 7 years, 9 months ago

Dunno and don't care. Maybe Pindling was off on his many nightly walking jaunts to do some hunting. He was an AC-DC fan.

But speaking of hitchhiking, I used to give Mr. Farrington, the old dance teacher rides around Nassau Town. He used to hitchhike on East Bay Street often spending the nights talking to the security guard at the rat-infested wharf at end of Deveaux Street. I think that his first name was Hubert. I was surprised to learn that he in fact was a famous Bahamian dancer.

He was a bit off his marbles and not entirely compos mentis, and he used to lecture me about the sins that IBM and big business wrought on the world (why he had it in for Felix and the boyz on Collins Avenue one never knows).

However he was run down with a car on the verge, and his noggin was smashed to pieces and it was a hit-and-run murder, and someone has the sin of taking the life of a wandering, half-crazy man on their soul. And the po-po did nothing because he was just an old man who was half crazy, running around town in his slippers, lecturing folks on the victimization of capitalism -- Comrade.