New Providence
Bank of The Bahamas responds to Tribune article
Apr 19, 2016 - 12:34:41 PM

It was reported in today's Tribune that at the recent BOB shareholders meeting I confirmed that politically influenced loans had been made by the Bank in the past. If such was the impression created by my comments it is incorrect. I was merely acknowledging that I was aware of perceptions that politically influenced loans had been made in the past. I was not, however, agreeing to the truth of the matter. Although the perception persists, I have never seen any credible evidence that politically influenced loans were granted by executive management nor requested or instructed to be granted by any Board of Directors at Bank of The Bahamas.

In fact, I would like to use this opportunity to set the record straight that when the loans which are now in the non-performing category were initially granted, they met all of the qualifications for lending. What has changed as a result of the economic climate of recent years is Bank of The Bahamas’ appetite for credit risk. There has been, and will be going forward, a fundamental shift in the appetite for credit risk as we restructure and regain our footing on the path to sustainability.

SIGNED
RICHARD C DEMERITTE, CHAIRMAN

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