as a bank for the Public Service, which will
include the provision of loans to public officers as well as banking services to public
institutions.
The Government of The Bahamas, as part
of the effort to modernize this country’s
financial infrastructure, has also designed
a comprehensive Mortgage Relief Programme in collaboration with the Clearing Banks Association to assist borrowers
negatively impacted by the financial crisis.
The programme will provide financial incentives that will allow banks to offer borrowers who have some ability to pay, but
have fallen behind, the chance to get back
on track.
Subject to programme eligibility criteria,
banks will offer qualifying borrowers a
minimum 20%-25% reduction in monthly
payments. For their part, borrowers will
be required to attend a financial counseling programme that will be established and
run by the Government.
[20]
2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE
According to initial estimates, upwards of
1,000 delinquent borrowers, which are persons who are 90 days or more in arrears
as at May 1, 2016, are anticipated to qualify
for the Mortgage Relief Programme. That
number could of course go higher. The programme has been designed to make it as
attractive as possible for eligible borrowers
to agree to participate (e.g., through large
reductions in monthly payments, the ability
to immediately start paying lower amounts
prior to loan modification paperwork, etc.).
As well, the programme has been designed
on the basis of the most current information from the banks’ own portfolios, thereby
maximizing the chances that program participation will materialize. The total cost is
estimated to be in the range of $20 million
over 4 years and will be paid by the Government. Additional details on the Mortgage Relief Programme will be provided
during the Budget Debate.
I am fully cognizant that this programme,
although well structured, does not address
the root cause of the mortgage crisis in
The Bahamas, nor does it provide a guarantee that persons who may fall into financial difficulty are afforded a duty of care by
their lender with respect to their home. In
this respect, the Government is also discussing with the Clearing Banks Association, guidelines on how to treat delinquent
mortgagors. We want to ensure that a
Bahamian who is delinquent is afforded
opportunities to retain his or her home or,
if all else fails, gives up that home in a dignified manner. To achieve this objective, a
revised Home Owners Protection Bill will
be presented to this House for passage
before the end of this calendar year.
MODERNIZING THE ECONOMY
THROUGH PLANNING AND
FOREIGN DIRECT INVESTMENT
Mr. Speaker,
In April of this year we concluded the first
phase of the National Development Plan’s
work and I have now made provisions to
ensure that the NDP can continue its work
with these key initiatives. I am therefore
pleased to advise that this budget contains
a new item within my Office’s head, establishing the Economic Development and
Planning Unit.
The Economic Development and Planning
Unit in my office is entering its second year
of operation and is tasked with overseeing implementation of the country’s first
locally developed and executed National
Development Plan as well as a number
of technical cooperation projects in concert with the Inter –American Development Bank. These projects include a $1.1
million dollar grant for the IDB to create
a Sustainable Nassau Masterplan and a
$900,000 grant for a Sustainable Masterplan for Andros.
We also anticipate a new technical cooperation grant in the coming year for a
project on San Salvador to commemorate
the meeting of Europe with the Americas
– the first encounter between the old and
new world that shaped the world as we
know it today.
The Unit is also tasked with the oversight
the Smart Bahamas programme – an initiative between The Government of The
Bahamas and the International Telecommunications Union (ITU) that was recently
announced by the Secretary General of
the ITU. The Economic Development and
Planning Unit will serve as Secretariat for
this new initiative which will be led by a
Technical Advisory Committee bringing
together the best minds in technology,
social media and e-governance. We are
currently seeking to work with the ITU on
developing an updated and comprehensive ICT strategy for The Bahamas, including e-government services. We are evaluating the plausibility of several initiatives
including pre-paid utility services. Our aim
is to get thousands of persons back on the
grid and to reconnect to prepaid electricity services. We know that this technology
has long been used in the UK and are exploring how to deepen Internet connectivity and various citizen security applications.
As an economic sector we know that ICT
is ripe for growth.
This year, we are also planning to make
headway on the implementation of the
Centre of Government Initiative.
THE NATIONAL DEVELOPMENT PLAN
Over the next budget year, the NDP
Secretariat will unveil a first draft of the
National Development Plan, expected by
the end of July, for consultation with The
Bahamian people and has budgeted for a
communications strategy to support the
National Development Plan process and