About Resolve
Bahamas Resolve Limited (“Resolve”) is a new wholly-owned government entity that now controls a limited portfolio of some of the Bank of The Bahamas troubled commercial loan assets. Resolve was implemented so the Bank of the Bahamas (“BOB”) can focus on getting back on a sustainable path to profitability. Resolve ensures a pool of problematic loans is removed from BOB’s portfolio, and over a period of approximately 10 years, those assets will be resolved.
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The Ministry of Finance created a new corporation, Bahamas Resolve Limited. (Resolve), that has taken control of a limited portfolio, of up to B$100M, in troubled commercial loan assets. Liability for these BOB debts has been transferred to Resolve, allowing BOB to restore its compliance with CBoB capital and liquidity requirements, to focus on implementing its new strategic initiatives, and to return to profitability. In other words, the move will mitigate bad debt risk to BOB.
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Resolve uses every commercial, financial and policy mechanism at its disposal to collect payment on the overdue loans.
What is Resolve?
The Bahamas Government's resolve to maximize the value and profitability of BOB is unshakeable. As part of this effort, the Government has created a domestic corporation whose only focus will be to realize the full potential of the loan assets it is taking over from BOB. A wholly-owned government corporation, Bahamas Resolve Limited. (Resolve) now controls a limited portfolio of B$100 million in BOB's unpaid commercial loan assets. As Resolve strives to maximize the value of this portfolio, BOB will focus on new opportunities to serve depositors with products that will enhance profitability and growth, and serve Bahamian interests well into the future.
How many borrowers are affected?
Privacy prevents us from sharing information that could reveal the identity of borrowers. What we can say is that a limited number of borrowers, representing a limited amount of troubled commercial loan assets, are affected by this. To find out whether your commercial loan and related assets have been transferred to Resolve, please contact your local branch.
What now? What is the process for Resolve?
The Ministry of Finance has created a new corporation, Bahamas Resolve Limited. (Resolve), to take over a limited portfolio of up to B$100M in troubled commercial loan assets. By transferring liability away from BOB, the bank can return to profitability and restore compliance with the Central Bank of The Bahamas (CBoB) capital and liquidity requirements. Resolve, for its part, can use every commercial, financial and policy mechanism at its disposal to collect payment on the overdue loans, thereby maximizing the value of the troubled assets.
How long is Resolve going to be in place?
The plan for Resolve is to be operational for 10 years, after which the government will re-evaluate the value it has realized from the debt portfolio, examine Resolve's financial situation, and determine the way forward.
How will Resolve be managed?
As a wholly-owned Government corporation, the directors of Resolve will be appointed by, and representative of, the Ministry of Finance; acting on the strategic and policy direction set by Government.
Working closely with the Government, a private accounting firm with extensive experience managing non-performing loan portfolios is being actively engaged, and is expected to take over management of Resolve within the coming days. The firm will work closely with borrowers to maximize the loan recovery.
When does Resolve take over the limited portfolio of B$100M in troubled commercial loans?
Resolve is effective as of Friday, October 31st.
Below are the lots remaining in Destini Lakes.
If you were not able to make it out, Open House prices and terms have been extended until Feb 28, 2019.
After Feb 28, 2019, prices will return to Triplex $120K gross and Quadruplex $125K gross.
Lots are moving fast!
Reserve your lot today by making a 5% deposit.
Triplex $99.5K- Deposit $4,975; Quadruplex $105K- Deposit $5,250
For more information
Phone: 242.323.0187, 242.457.4022-5
Email: info@bahamasresolve.com
October 31, 2014 - Nassau, Bahamas – The Right Honourable Perry Christie today expressed confidence in his Government’s plan to strengthen Bank of The Bahamas (BOB), and protect the bank’s customers and shareholders.
The Central Bank of The Bahamas (CBoB) has monitored BOB’s performance carefully. Against the backdrop of a slowing economy, the Governor of CBoB has been informing the Ministry of Finance of the emerging risk posed by some of BOB’s unpaid commercial loans. The Ministry of Finance and BOB, with the support of CBoB, have since developed a plan to protect BOB depositors, strengthen its bottom line, and resolve unpaid loans.
Under this plan, all BOB deposits remain secure and accessible. Here is how the plan works:
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BOB’s banking services will continue, and there will be no service interruptions. BOB will undertake decisive action to restore itself to full strength, generating new revenue by launching new services and banking platforms; as well as by reorganizing management of the bank.
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The Ministry of Finance has created a new corporation, Bahamas Resolve Ltd. (Resolve), to take over a limited portfolio of up to B$100M in troubled commercial loan assets. The move protects BOB customers and shareholders, returning it to profitability, as well as compliance with CBoB capital and liquidity requirements.
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As Resolve uses every commercial, financial and policy mechanism at its disposal to collect payment on the overdue loans, The Bahamas Government will seek new policy initiatives designed to strengthen its business relationship with BOB.
“This shows the effectiveness of our central bank, its supervisory and regulatory tools,” said Prime Minister Christie. “Bank of The Bahamas is the people’s bank. Our resolve to ensure its success is unshakeable. We’re working to protect depositors and shareholders. With an improving economy on the horizon, we have complete confidence in the bank’s future,” he added.
Managing Director Mr. Paul McWeeney says BOB must adjust to the new business environment. “The 2008-2012 U.S. recession affected some of our commercial borrowers’ ability to repay, which hurt our bottom line. This plan returns us to profitability, while allowing us to focus on decisive steps to improve revenue generating opportunities. For example, we are already seeing the benefits of our revamped sales and service functions.”
The Central Bank of The Bahamas endorses the plan. “This puts BOB in a stronger financial position,” said Governor Wendy Craigg. “It facilitates BOB’s compliance with all domestic and international liquidity and capital requirements. Other changes being considered will serve the interest of the bank’s depositors and shareholders to the benefit of all Bahamians; including a reorganization of BOB and its senior management structure.”
