When the House of Assembly sits again, it is expected that Prime Minister Perry Christie or Minister of State for Finance Michael Halkitis will break the government's silence over the direction and leadership of Resolve Bahamas Ltd. (Resolve).
The company was supposed to hire an accounting firm to collect on $100 million in outstanding commercial loans which Resolve "purchased" from Bank of The Bahamas on October 31, 2014. Halkitis said on October 31 that an announcement would be made within a week from that date about who that accounting firm would be.
Prime Minister Christie spoke about the matter after touring the National Art Gallery of The Bahamas recently, noting that the government would "have to account to the Bahamian public" for whatever it does with respect to Resolve.
"With respect to that money, we are hiring an accounting firm to manage Resolve. That firm has been identified.
I have had a meeting with one of the partners of the firm... I have given the directions that I would wish to give as the government on how we would wish this to be done in the best interest of the Bahamian people," Christie said.
"I expect then to review reports that have been done; I expect them to get going and I expect to come to the Bahamian people on what will be happening with the company Resolve."
Resolve was formed on October 31, 2014 for the express purpose of relieving Bank of The Bahamas of a dangerous amount of bad commercial debt. The government-owned Resolve swapped $100 million in bonds - backed by a "letter of comfort" - for $100 million of the bank's non-performing commercial loans.
The bonds in question are redeemable, non-convertible bonds - coupons of Nassau Prime less 50 basis points - in the denominations of $1 million and $5 million, with maturity of up to 10 years. These bonds are classified as a performing asset on the bank's balance sheet.
Thus, for nothing but a government "letter of comfort" - the bonds depend on the letter for their value - Bank of The Bahamas was able to rid itself of debilitating non-performing loans and return to capital adequacy compliance.
Resolve, meanwhile, must do all in its power to collect on the outstanding debt.
Many questions have been asked in the weeks since the company was unveiled, primary among them the matter of leadership. Christie also addressed that issue, saying that "significant Bahamian personalities (have been identified who) will be respected by the country upon their agreeing to be directors of Resolve and so with the appointment of directors people will see that this is a part of steps we are taking to ensure that not only that Bank of The Bahamas go on to make a profit and that's going to happen, (but) also, that we will take that $100 million and find a way to get a lot of it back for the country."
Guardian Business revealed earlier that former Central Bank Governor James Smith was one of those shortlisted to head the company.

Click here to read more at The Nassau Guardian