The Tribune.‘Catastrophic Cash Call’ Fear On $106m Mortgage Corp Gap

  • Sign in to favorite your
  • Discuss2 comments, We We Blog about
  • Share this E-mail, Twitter, Twitter
  • By NEIL HARTNELL

    Tribune Company Editor

    The Bahamas home loan Corporation’s (BMC) recent past chairman yesterday required urgent action to tackle a $106 million funding space, and steer clear of “a catastrophic cash call” regarding the taxpayer.

    Dr Duane Sands told Tribune company that the BMC’s 2013 monetary statements, posted yesterday, revealed it had been perhaps perhaps not “going into the right direction” when it stumbled on addressing its $170.168 million responsibility to relationship investors.

    The BMC’s ‘bond sinking fund’, 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 BMC’s financial reserves and its total repayment that is principal, amounting up to a ‘ticking economic timebomb’ that exposes the Government and Bahamian visitors to another monetary ‘bail-out’ unless rapid corrective action is taken.

    Simply 37.7 percent associated with outstanding relationship principal is installment loans Florida included in the BMC’s ‘sinking fund’, plus the ‘crunch’ would be struck between 2023-2026 – just seven years away – whenever some $110 million becomes due.

    “There has got to be appropriate management that is financial avoid a catastrophic money turn to the Government,” Dr Sands told Tribune Business, suggesting that the 2013 audited monetary statements revealed little to no progress have been made. Read more