BDB with some $16 million in outstanding arrears
NASSAU, BAHAMAS – The Bank Development Bank’s (BDB) expects to slash its loan delinquency rate to 25 per cent by year’s end, according to its Managing Director Dave Smith.
Smith said the bank has some $16 million in outstanding arrears at the Warren L Rolle Apprenticeship press conference yesterday.
“With regards to delinquencies we are continuing our process,” he said.
“We are contacting those clients in the first instance and trying to get to amicable arrangements and then of course where we can’t see that working we take it to the next step and pursue legal action. We are working with the clients, reaching out to them to try and get them to settle their obligations.”
Smith said: “The rate of delinquency right now is 60 per cent. By the end of the year we probably will be at 25 per cent because of a particular action that we have taken. We are looking at roughly $16 million outstanding and some of this goes over many years.
“It’s also an exercise of cleaning the book. In some cases, clients would have actually died in the process. It’s been around for a while.”
Smith noted the BDB is expanding the industries it supports.
“We are continuing to do that and this is why our apprenticeship program is important,” he continued.
“We are focusing on sustainable development goals. When the bank started in 1974 there were what is called under the legislation enterprise areas which included agriculture, tourism, manufacturing etc.”
Smith said: “Technology and services have been added to that and so that broadens the scope and focus of the bank. We are a financial institution but also a development financial institution where our focus is really sustainable development goals and the impact and not necessarily just credit extension.”