By KHRISNA RUSSELL
Deputy Chief Reporter
THE Minnis administration is seeking approval from Parliament for a new loan of $100m to invest in Bahamas Resolve Limited, Minister of Finance and Deputy Prime Minister K Peter Turnquest announced yesterday.
He said the government remains committed to facilitate Resolve retiring its original $100m promissory note issued to the Bank of the Bahamas in respect to the initial tranche of toxic loan transfers.
After exploring funding options, Mr Turnquest said the government is of the view it would be best to access the domestic market given the ample levels of excess liquidity.
"In the first half of this fiscal year, some $69m was expended from current government resources as part of the $100m that the government is to invest in Resolve," he told Parliament yesterday during his mid-year budget communication.
"As I foreshadowed in my statement to Parliament on Resolve, in September of last year, and as was disclosed at the time of our recent international bond issuance, the government committed to facilitate Resolve retiring the original $100m promissory note issued to the Bank of The Bahamas in respect of the initial tranche of toxic loan transfers, in accordance with an agreed schedule.
"After exploring funding options, the government is of the view that it would be best to access the domestic market, given the ample levels of excess liquidity. In line with this commitment, new corresponding borrowing authority will be sought from Parliament, today, to cover this sum."
Following his address to Parliament, Mr Turnquest moved a resolution seeking the funding.
The resolution authorises the minister to raise the funds by way of the creation and issue of stock, loan agreements or the issue of bonds.
Bahamas Resolve is the special purpose vehicle the Christie administration created in 2015 to clean up BOB's balance sheet and go after loans the bank was unable to recover.