Minister of Trade and Industry Leslie Miller said Monday that he plans to present a proposal to Cabinet that would pave the way for a new $5 million National Development Fund to assist entrepreneurs.
Speaking on the Love 97 talk show “Issues of the Day” Minister Miller said the National Insurance Board would subsidize the fund.
He said one of the problems with the Bahamas Development Bank (BDB), which usually finances entrepreneurs, is that there are a lot of delinquent loans.
It was one of the main concerns raised two weeks ago when Prime Minister Perry Christie named a new board for the Bank.
At that time, it was revealed that the BDB has a $13 million deficit and mounting accounts receivables.
On Monday, Minister Miller said the Bank has probably written off $10 million in bad loans in the past 20 years.
“Bahamians have a tendency to think of a loan from the Development Bank as a freebee,” Minister Miller said.
He pointed out that the Bahamas Agricultural and Industrial Corporation had a micro processing loan programme put in place by the former government.
The programme made loans available to small businessmen who would have gotten contracts from Sun International, or purchase orders from government departments.
“Unfortunately what happened was a quarter of a million dollars was lent out and the outstanding balance right now is a quarter million dollars,” he said. “We are now looking at re-implementing that.”
Minister Miller said the government will also sell off low cost buildings and properties in the Industrial Park on Soldier road to Bahamian entrepreneurs who have been renting for years.
Once those properties are sold, the government will establish a new Industrial Park on Gladstone Road, which encompasses some 100 acres of land, he said.
“We’re looking to expand that to as much as 250 acres of land, again to give Bahamian entrepreneurs a chance to get their foot in the Bahamian economy,” Minister Miller said. “And we’re selling off the buildings and also the properties to give some equity in the properties from where they operate.
“We would lease purchase those buildings so that when you come to the park, you have a lease purchase agreement for 10 years. It doesn’t make sense to me for the government to be a landlord. That’s not helping any Bahamian to get on their feet.”
Minister Miller also said there is a serious lack of space at the BAIC building on East Bay Street. He said the government is hoping to acquire the old Customs building on Prince George Dock to house the Corporation.
By Rogan M. Smith, The Bahama Journal
