Tuesday, December 1, 2020

‘True Fall-Out’: Household Loan Defaults Grow $58m

 
Central Bank of the Bahamas

By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net

MORTGAGE and consumer loan delinquencies increased by $58m during October 2020 with a senior banker warning it may take five to seven years to recover from COVID-19’s “true fall-out”.

Gowon Bowe, pictured, Fidelity Bank (Bahamas) chief executive, speaking as the Central Bank unveiled data exposing the extent of households’ inability to meet their obligations as payment deferrals come to an end, said the October data represented neither “the beginning” nor “the end” for commercial banks and their borrowers.

With the sector’s “end game” focused on “how we manage our loan portfolios to get to the other side”, Mr Bowe said Bahamas-based institutions were now likely facing a similar scenario to the 2008-2009 financial crisis and subsequent recession when it took some borrowers between six to seven years to recover and get back on track with their repayments.  Read more >>