May 29, 2020

Raise losses in Bahamas by Dorian to $ 2.5 billion

The governor of the Central Bank of the Bahamas, John Rolle, said Tuesday that the total losses caused by Hurricane Dorian could exceed $ 2.5 billion in the most optimistic scenario, a sum equivalent to 20% of the economy of the Atlantic archipelago.

Rolle, in a meeting on economic prospects of the monetary regulator, said that these projections are based on the devastating impact that the hurricane caused on housing, public services and infrastructure in the Abaco Islands and Grand Bahama, mainly.

He warned of the problems that the Bahamas insurance industry may suffer, as it will have to face payments of about $ 1 billion.

Rolle said that in addition to that many families and businesses affected by the hurricane face complicated situations because they have no insurance.

"They could face a long recovery process by having to rely on their savings or the government's financial assistance," the official said.

The governor of the Central Bank of the Bahamas also predicted that the delinquency rate of the commercial banking industry will increase by several percentage points to reach a range of between 10% and 12% after Dorian.

He added, however, that a delinquency rate like that was predictable for the Central Bank given the magnitude of the damage caused and the lack of resources in which individuals and companies remained.

Rolle said that Grand Bahama and the Abacus together account for 14% of the commercial bank credit of the Atlantic archipelago, which qualified represents a much lower percentage than the island of New Providence, where the capital, Nassau, which concentrates most of of the economy of the country.

The official stressed that key commercial assets are expected to recover faster than the Abacus and Grand Bahama housing inventory.

Rolle clarified that the losses of 2.5 billion dollars is an approximate estimate, after indicating that the damages affected both housing and public services infrastructure, commercial premises and inventory.

"The estimate of 2.5 billion dollars is the most optimistic once these total damages were evaluated. I have seen higher valuations. We know that 20% of GDP is not a figure that is out of range," he concluded.

. (tagsToTranslate) Raise (t) losses (t) Bahamas (t) Dorian (t) millions

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