By NEIL HARTNELL
Tribune Company Editor
The Bahamas home loan CorporationвЂ™s (BMC) recent past chairman yesterday required urgent action to tackle a $106 million funding space, and steer clear of вЂњa catastrophic cash callвЂќ regarding the taxpayer.
Dr Duane Sands told Tribune company that the BMCвЂ™s 2013 monetary statements, posted yesterday, revealed it had been perhaps perhaps not вЂњgoing into the right directionвЂќ when it stumbled on addressing its $170.168 million responsibility to relationship investors.
The BMCвЂ™s вЂbond sinking fundвЂ™, designed to finance the payment of principal whenever its relationship financing matures, held simply over $64 million at end-June 2013.
This implies there is certainly a more than $106 million gap involving the BMCвЂ™s financial reserves and its total repayment that is principal, amounting up to a вЂticking economic timebombвЂ™ that exposes the Government and Bahamian visitors to another monetary вЂbail-outвЂ™ unless rapid corrective action is taken.
Simply 37.7 percent associated with outstanding relationship principal is installment loans Florida included in the BMCвЂ™s вЂsinking fundвЂ™, plus the вЂcrunchвЂ™ would be struck between 2023-2026 – just seven years away – whenever some $110 million becomes due.
вЂњThere has got to be appropriate management that is financial avoid a catastrophic money turn to the Government,вЂќ Dr Sands told Tribune Business, suggesting that the 2013 audited monetary statements revealed little to no progress have been made. Read more