Bahamas Exchange May Get Government Help

by Mike Godfrey, Tax-News.com, New York

30 July 2002

The new Bahamian government may offer a life-line to the Bahamas International Securities Exchange (BISX), which vainly petitioned the previous administration for financial help and is teetering on the brink of liquidation.

BISX chairman Ian Fair says that the exchange was set up with private investment based on the promise of business from the government which has never materialised. There are 18 stocks on the exchange with market capitalisation of $1.8bn, and the exchange expected that the government would use it for debt issuance, or lean on the Bahamas' National Insurance Board, which has over $1bn of assets, to invest in listed stocks instead of domestic government securities. Privatisation issues were also expected, but the government is way behind on its agenda for telecoms liberalisation.

BISX shareholders said last December that they would raise another $2m of capital if the government would match it, but they are still waiting for a response. Now it seems that help may be at hand.

"We are studying a business plan from the BISX and we are optimistic that the problem will be addressed and resolved," says Perry Christie, Prime Minister. Ian Fair says he now expects a reply from the government within two weeks.

Recommended