The government of The Bahamas intends to establish a special hurricane fund by way of a hurricane recovery and reconstruction bond, says Prime Minister Perry Christie.

The economic and social impact of Hurricane Matthew underscores the government's move to establish this new form of funding for businesses and residents in need of immediate financial recovery.

Christie pointed out that there is a need for a new financing model to deal with hurricane expenditure.

"In the past we have taken away from all ministers' budget allocations to finance hurricane relief.

"A special hurricane fund by way of a bond. It will require the banks to participate in that offering. The financial secretary is in discussions as we speak and we have had discussions with the chamber of commerce so that we can have a shared vision as to what that money will be used for," said Christie.

Chairman of the Bahamas Chamber of Commerce and Employers' Confederation (BCCEC) Gowon Bowe said the uniqueness of the bond is that it can only be used for the hurricane relief.

The cost of Hurricane Matthew, according to Christie, is said to be

significantly greater than Hurricane Joaquin, which cost an estimated $100 million in damage.

Purpose
The prime minister said that given the economic cost of the disaster, the government is exploring the option of issuing through its normal mechanism a hurricane recovery and reconstruction bond.

"The initial response to this concept had been very favorable as the domestic financial institutions realize they have a stake in the well-being and recovery of the economy," he said.

Christie highlighted the importance of this bond by shedding light on its economic significance to small to medium sized enterprises (SMEs).

"The purpose of this funding would be to have an accelerated reconstruction program, provide assistance to individuals impacted by the hurricane, and to provide assistance to small and medium-sized businesses. Again, a pursuance of the recognition of SMEs as significant contributors to the economy of The Bahamas," Christie said.

"We would obviously design programs on the basis that people must know that this reconstruction bond has to be paid for by the government of The Bahamas. This is not money that somebody is giving us. The idea is to facilitate people out there who are in need," Christie added.

Team
In addition, Christie announced the names of a revamped special team to oversee fundraising for storm relief efforts.

The team members are: Jean Chalopin, chairman of Deltec; Tracy Knowles, former partner of KPMG; Gowon Bowe; Michael Moore; and RBC Bahamas Managing Director Nathaniel Beneby.

He said that this team would help legitimize the giving of monies from people outside and inside The Bahamas.

Xian Smith, Guardian Business Reporter

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