Relaxation of Lending Guidelines for Hurricane Relief Loans

Published: Wednesday September 15th, 2004

In the aftermath of damages caused by Hurricane Frances, and to facilitate access by households and businesses to credit facilities for relief purposes, the Central Bank of The Bahamas announces the temporary relaxation of lending guidelines issued to domestic banks on 9th August 2004.

In this regard, banks are advised that (a) the 15% equity contribution will not apply on such facilities, and (b) the threshold debt service ratio for the relevant borrowers is increased to 55% from the 40%-45% range.

The Central Bank will continue to monitor the situation and advise the public of any further change in this policy.

15th September 2004