(How Does Money Lending Interest Work) Former BEC Chairman Defends Decisions of Past Administration - The Bahama Journal
Former Chairman of the Bahamas Electricity Corporation (BEC) Alfred Jarrett said the corporation escaped bankruptcy when it refinanced its loan through a consortium of local banks to pay off loans from the Inter-American Development Bank. A blue ribbon commission was appointed before we came into power consisting of none other than the [then Central Bank Governor] Julian Francis, the general manager of BEC, a few other board members and bankers to look into the possibility of refinancing these loans that were leaving BEC highly exposed and vulnerable. Jarrett said, “We not only did the refinancing in 10 years, but we locked in an interest rate cap for the same period so that we would not pay more than 4. In the House of Assembly last week, Minister Neymour said that in 2003 electricity rates were reduced without a proper study, which placed BEC in a poor financial position and threatened its sustainability. According to Minister Neymour, this along with payment of interest on security deposits resulted in the corporation’s revenue being reduced by approximately $18 million per year since the rate reduction. Neymour said BEC is expected to lose around $38 million in 2009/2010, assuming the current tariff rates remain in force and oil prices rise at a moderate rate. Learn more
No Tags