Despite ending 2013 more than $20 million in debt, stunted by continued losses and an apparent inability to collect on non-performing loans, and having to write off more than half a million dollars in bad loans that year, the Bahamas Development Bank (BDB) was classed by external auditors as "a going concern" - meaning it was considered not bankrupt - at the end of 2013.
The government yesterday tabled audited statements for the bank for 2013, and the
auditors - chartered accountants BDO Bahamas - drew attention to the significant losses and reduction of equity the bank incurred due to the performance of its loan portfolio and loan provisioning.
"While its liquidity and ability to meet obligations may be significantly impacted by the loan losses, the Directors are satisfied that the bank is currently a going concern and that the preparation of these accounts on that basis is appropriate due to the continuing support of the Bahamas government," BDO said.
At the end of 2013, the bank had accumulated a deficit of $52.1 million, reflecting a net loss for the year of $1.85 million.
The share capital stood at nearly $30 million, and the reserve fund was $273,128. But when the deficit was taken into account, the bank ended the year $22.9 million in the hole.
Scrutiny reveals that the amount of non-performing loans in 2013 was virtually the same as 2012: $25.5 million in 2013, and $25.9 million in 2012. The non-current loans totalled $26 million, and the loans written off amounted to $552,709.

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