Paul McWeeney, Bank of The Bahamas International’s managing director, yesterday said data indicating flat economic growth for 2003 did not support any moves by the Central Bank’ to lift its lending cap, making it difficult for commercial banks to extend themselves into new areas despite the Small Business Association of The Bahamas pleas to provide capital for proven entrepreneurial ventures.
Mr. Mc Weeney said hostilities in the Middle East and the slow US recovery both weighed heavily against any changes in current monetary policy. He pointed out that companies were not rushing to rebuild operating platforms to pre-September 2001 levels, but the relatively quick tourism indusatry rebound and the financial austerity measures introduced by the government may avoid a larger fiscal deficit for 2002-2003.
Even though the Bahamian commercial banking system was rated as well-capitalised and managed, Mr. McWeeney said global economic concerns would dampen any immediate recovery and prolong uncertainty.
Source: Yolanda Deleveaux, The Tribune
