The Act was written in 1974 and is “hampering” the development of commerce, Mr Outten said in his address to the Senate during yesterday’s morning session.
Lengthy loan processing, he said, among other things, is a setback for entrepreneurs who need “quick cash.”
But, George Rodgers, Managing Director of Bahamas Development Bank (DBD), in an interview with The Tribune, yesterday explained that the purpose of the bank is oftentimes misunderstood.
The main objectives of the bank, he said, is to jump-start new projects, assist in the rehabilitation of existing ones and fund development of indigenous products.
“We are not a commercial bank and if the need is for fast cash then people need to go to the commercial bank,” he said. “In many cases people take what we do out of context and try to compare us to the commercial sector.”
However, Mr. Rodgers explained that executives are seeking to have the Act reviewed because there are certain provisions that need amendment.
“We would like to have joint ventures with foreigners and some of the terms and conditions updated because, if a local manufacturing company needs to expand and there is an international company with that expertise that can help, the bank would not be able to lend funds for that venture, because the mandate of the bank is to assist only local businesses,” Mr Rodgers said.
“I have to admit that today it is no longer brilliant and can be more appropriately described as cumbersome . . . slow and discouraging to Bahamians seeking assistance in beginning a business.
According to Senator Outten, if changes are not made to include more favourable lending to low and high risk ventures, the BDB will continue to be seen as the, “place to go when the commercial banks won’t do the lending.”
Mr Rodgers said that the bank operates within a very restricted market.
“We can probably look at one or two commercial ventures that are close to what the BDB is expected to do,” he explained. “So in other words, (BDB’s mandate) could be brought a little closer to the commercial sector.”
By ROYANNE FORBES-DARVILLE
