The Bahamas Development Bank (BDB) has succeeded in shrinking its non-performing loans portfolio to a percentage in the 20s, from a rate of 76 percent, the bank’s Head of Strategic Development and Initiatives Sumayyah Cargill said yesterday.
Cargill, who made the comments during an appearance on Morning Blend Business on Guardian Radio 96.9 FM, explained that while the bank is doing much better with collections, some businesses that have been successful since receiving a loan from the BDB are sometimes simply not paying.
She added that the legal and collections teams have been working hard to ensure that payments come into the bank, so that the capital can be reused to fund other projects.
Cargill lamented that the bank had a long history of loan leniency that affected
collections.
“We’ve given such long rope that it’s caused us to have a bit of a challenge with collection and that perception,” said Cargill.
“We tend to be very patient with people and we extend a lot of leeway. So, people come to us and say ‘we really can’t pay right now’.
“But as businesses mature, as our country matures, it’s really important for businesses to understand that paying back your loans is an important way of building credit and an important way of accessing credit.”
Cargill said the bank continues to fund business projects in The Bahamas, sometimes to the tune of millions of dollars based on the plan. However, she said there are some projects that are sometimes too high of a risk for the bank to fund. One sector that she said is heavily scrutinized is fisheries, but contended that it does not mean the BDB would not finance the right fisheries project.
According to Cargill, the BDB is hoping to access regional financing in order to expand its loan portfolio. She said the BDB is working with the Caribbean Development Bank on a “creative loan product”.
“We’re really working right now on how to channel international finance,” Cargill said.
The bank is having a business expo during the first two days in July to apprise Bahamians of what is available to them at the bank.
