The Cabinet will, within the next few weeks decide whether it will supply through the Central Bank of The Bahamas, the $2 million in funding being sought from the government by the Bahamas International securities exchange (BISX) to guarantee its survival, James Smith, minister of state in the Ministry of Finance, said yesterday.
However, he added that regardless of whether BISX survives or is forced to liquidate, the outcome will not alter the need for a stock exchange in The Bahamas.
He pointed out that an injection of capital into any company would boost its viability.
Mr. Smith said the government will review all its options for helping BISX, which has been struggling with low trading volumes and profitability since the exchange began in may 2000, forcing it to seek a fresh injection of $4 million in funding, with contributions evenly split between the government and private sector.
However Mr. Smith said, “It need not remain in the form of BISX as we know it.
“I would only like to say that we believe that there is a need to strengthen the capital markets in The Bahamas and there is a need for a stock exchange in The Bahamas, and [that is] the background in which we shall review it.”
The securities board unveiled yesterday comprises:
- Chairman – Calvin Knowles
- Vice Chairman – Patricia Hermanns
- Tonya Bulanos
- BK Bonamy
- Eve Poitier
- Jerry Butler
