Bahamians are now more than$1 billion in arrears on their loans as the public continues to struggle with keeping up mortgage payments.
In its latest economic report, the Central Bank said the banks’credit quality indicators deteriorated further in July.
According to the report, this was buoyed by sustained high unemployment levels and a challenging business environment.
While there are no recent numbers on unemployment, it is widely agreed by those in government and in business that the rate of joblessness remains in the double digits.
The report said total private sector loan arrears rose by$22.4 million (two percent) to$1.2 billion, with a corresponding increase to 18.6 percent of total loans.
“The current numbers evidence the fact that the economy is still under some pressure and will probably continue to be for the near future,”said Barry Malcolm, chairman of the Clearing Banks Association and Managing Director of Scotiabank Bahamas Ltd., in an interview with The Nassau Guardian last night.
“Notwithstanding the current levels of delinquencies we’re confident that the situation is stabilizing and will improve into 2011.”
