Relaxation of Lending Guidelines for Hurricane Relief Facilities
Published: Tuesday September 3rd, 2019
In the aftermath of the significant damages caused by Hurricane Dorian to several northern Bahama Islands and to facilitate access by households and businesses to credit facilities in those islands for relief purposes, the Central Bank of The Bahamas announces the temporary relaxation of lending guidelines to domestic banks.
In this regard, banks are advised that in respect of hurricane relief facilities:
(a)The mandatory 15% equity contribution will not apply.
(b)The threshold debt service ratio of 40% to 45% is waived for distressed borrowers. Banks may adopt flexible but prudent arrangements in line with borrowers' financial capacity.
The Central Bank will continue to monitor the situation and advise of any further change in this policy.