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.