Caribbean watch: Bahamas investment reform; T&T's Nedco's debt woes

Bahamas to review investment fund reforms

Draft legislation to overhaul the country's investment funds regime could be made available for industry review by next week, securities regulator's (SCB) ex-officio board member Christina Rolle was quoted as saying by daily Tribune 242.

Rolle, speaking on a panel at a conference held by Bahamas accountant association Bica said, "Progress on the project has been very good to date, and, in fact, we expect that the draft bill will be issued to the industry for consultation by next week."

As reported in the Tribune, she added, "We are pleased that the legislative framework we are developing will provide for a critical, modern, world-class regulatory regime for the funds sector, and simultaneously establish the regulatory environment that will facilitate development in the funds industry."

The SCB launched an initiative in July to overhaul the Investment Funds Act of 2003 to strengthen sector regulation and improve competitiveness.

SCB legal counsel Mechelle Martinborough had earlier told Tribune 242 that one chief objective of the proposal would involve significant changes in the licensing regime surrounding funds.

Trinidad & Tobago's Nedco planning layoffs on non-performing loans

Trinidad & Tobago MSME community lender National Entrepreneurship Development Company (Nedco) is closing offices, consolidating operations and considering layoffs after reporting TT$224mn (US$33.2mn) in non-performing loans (NPLs) and accumulated debt, the Trindad & Tobago Guardian reported.

Appearing before parliament's public accounts committee, Nedco chairman Clarry Benn said the financial institution is in transition and needs visionary management to progress with its mandate.

"In its current form, the business isn't sustainable," Benn said told the daily.

He added the firm's NPL ratio stood at 77%, valued at TT$94mn and involved 4,000 customers. In addition, Nedco holds TT$150mn in accumulated debt.

"People applying for loans may have seen it as grant financing and as it came from a government agency didn't feel the need to repay loans. We met some from way back and those people said they never knew they had to repay," he said.

The report added that Nedco has a debt collection agency seeking repayments, while monthly collections have been TT$1.5 million.