The Bahamas International Securities Exchange could be saved from an early death now that Prime Minister Perry Christie has revealed that the beleaguered exchange is getting financial assistance from the Central Bank of the Bahamas .
Mr. Christie made the announcement at the Cabinet Office yesterday afternoon, but declined to say exactly how much money is being pumped into BISX.
Months ago, BISX shareholders banded together and agreed to raise up to $2 million to drive the exchange to the next level, but said it needed the government to match the funds and invest in the exchange it urged the private sector to create.
Facing economic uncertainties and millions of dollars in revenue shortfall, the new Progressive Liberal Party government has been non-committal as it relates to funding BISX, but Prime Minister Christie has indicated that he sees the exchange as viable and necessary to the overall growth of the country.
The Central Bank is giving BISX what Mr. Christie said is a significant sum of money.
But the exchange could need much more to survive, according to a source close to BISX.
When asked if BISX was getting millions from the Bank, the source said that the amount was, “very modest.”
ﾠMr. Christie said he was not ready to reveal exactly how much money was being pumped into BISX. He said he was demonstrating “fiscal wisdom” and didn’t want to speak out of turn.
“I have given you an indication of some personal feelings on the matter,” Mr. Christie said. “I have told you that the Central Bank has in fact given…funding to BISX. I have a view that in our country we’re going to need a dynamic institution of that kind and so, we’ll have to see.
Regarding the amount of money that BISX was getting from the Central Bank, Mr. Christie said, “I can tell you. But I’m not sure about the implications of telling you. I know the amount.”
Funding would undoubtedly be welcomed news for BISX officials who have long said that it is necessary to keep the exchange going.
BISX Chief Legal and Compliance Officer Keith Davies suggested in the past that National Insurance Board funds could be put to work to develop the capital market.
“We do not propose that institutions simply dump their money into the capital markets to support the fragile market. Instead we believe that institutions should take a long term view on stock and capital markets,” Mr. Davies said in an earlier interview with the Bahama Journal.
He also suggested that more than $500 million in private pension funds could be invested in BISX.
By Candia Dames, The Bahama Journal
