The Bahamas Development Bank (BDB) faces being “wound up”, at least in its present form, under a radical proposed restructuring of the Government’s small business support services that is tied to implementation of new legislation.
Tribune Business can reveal that the first draft of the proposed reforms, which has been circulated among private industry stakeholders, envisions the new Small and Medium-Sized Enterprises Development Agency (SMEDA) becoming the “successor” to the BDB.
The BDB, which has a delinquency ratio of more than 50 per cent on its existing $50 million loan portfolio, would cease to extend any new credit to entrepreneurs/small businesses and instead focus solely on managing its existing book.
And all its existing functions would be “amalgamated” into SMEDA, which will be created by the proposed Small and Medium-Sized Enterprises Development Bill.
