The government has entered into a non-revolving term loan facility agreement with various banks to make  available  a $211 million dollars to BEC.

This was announced in the House of Assembly yesterday by the Minister of Works Desmond Bannister who said that the company is presently in a financial crisis.

“There’s a number of factors including the high cost of fuel in 2018, the funding of capital projects, a high expense ratio and reduced cash inflows due to tariff reductions,” Bannister said.

BEC has found it desirable for the better performance for its functions under the Act  to refinance its existing loans to enter into a non-revolving term loan facility agreement with various banks. 

Collectively the banks include Scotia Bank, First Caribbean International Bank, Royal Bank of Canada, Bank of The Bahamas Ltd, and City Bank NA.

Mr. Bannister said the pre-condition of the facility agreement is that the government of The Commonwealth of The Bahamas  guarantees the banks repayment obligations of BEC in respect to the principle of the loan and interest there on, under the facility agreement. 

By virtue of Section 17 of the Act, the government may guarantee in such manner and upon such terms as it may fit the payment, the interest and principle, either of them of any loan proposed to be raised by BEC, said the Minister.

Mr. Bannister also said that no loan should be raised by the government and no guarantees involving a financial liability shall be binding upon the government unless entered into the prior approval of the House of Assembly, signified by a  resolution thereof. 

The loan would either be in US or Bahamian currency.