ACAi ssi Ai
Attendees (shown below), Including MPs and government ministers, at an Urban Renewal
Project seminar in Grand Bahama were shown a variety of knives and
other weapons seized by the police from school students
Minister of Tourism, Obie Wilchcombe, addresses the Urban Renewal Project seminar
Bahamian National party leader
urges voters: Give us a chance
FROM page EIGHT
li,.l ollers from both major political parties, but
;lid -1 will not support policies which I am con-
vinced will send us backwards."
During the interview, Dr Johnson touched on
some of the present government policies that he
feels are setting the Bahamas back, and in doing
so. also offered up his party's philosophy for
1 became involved in politics because of prob-
iems in health care with government's lack of
ability to deliver services.
"Princess Margaret Hospital was built in 1952.
Nouw in 2006, where are the other major hospi-
Dr Johnson pointed out that even now, half
of the serious medical needs facing Bahamians are
being dealt with in the United States, and said this
could have serious implications for the govern-
mcnt's proposed National Health Insurance plan.
"PMH is too small the population has grown.
I he demand is higher, so if we are going to go the
N I S route, there needs to be more planning.
"If you bring it in today, because of the cost,
plivale insurance will have to be dropped. In
killing private insurance that way, you are moving
away from the free enterprise, private sector
model," he said.
Shifting his focus from health services, Dr John-
son touched on the need for a constitutional
review of the Bahamian system of governance
that addresses the integral relationship between
the Family Islands and New Providence. This,
he said, is going to be critical in our country's
"The system of government that we have now'
is the old imperial method that England used to
govern its colonies. This method uses the center
and periphery model, where Nassau governs the
Family Islands using the old commissioner sys-
tem," Dr Johnson explained. "The Family Islands
do not have enough control of their own decision
"Aside from foreign policy and national secu-
rity, the Family Islands ought to be in a federat-
ed union, where the major decision making is
made there. More of their funds stay there for
things that they can envision."
"If 30 per cent of the income comes to the cen-
tral government, fine. But then, 70 per cent stays
in the island for the administrative structure, for
true local government to use it," he suggested.
What Dr Johnson would like to see is a pro-
gressive Bahamas; a Bahamas that empowers the
Family Islands, while the central government
deals with larger, global issues. "This is about
empowerment in the true sense," he said, "and if
we do not change the New Providence-to-Fami-
ly Island dynamic, the Bahamas will not survive."
Dr Johnson highlighted Abaco, saying that res-
idents there are already upset about how they
are being treated in terms of what they get in
return for their tax dollars.
"The Bahamian National Party is not about us
becoming more powerful. It really is supposed to
be about people themselves becoming more pow-
erful and making their own decisions. It is over-
"And 33 years after Independence, we are con-
cerned with the wrong things. We are not using
our Family Islands properly, and if we develop the
proper systems of government, then we develop
islands with a proper infrastructure, including a
Dr Johnson does not want the Bahamian pub-
lic to be fooled by election year-rhetoric about the
millions of dollars in Family Island investments
the government is now touting.
"The government is creating the illusion of
tremendous wealth, but the wealth does not
belong to Bahamians," Dr Johnson warned. "It
has created this illusion of tremendous jobs, but
many of the jobs are going to be for immigrants,
and the final jobs for Bahamians will still be
"A country is not moving forward if all it talks
about are jobs at the same level of the last gen-
eration," Dr Johnson continued. "This is not
progress. It is all an illusion."
He questions why anchor properties-in the
country always tend to involve investments in
tourism, which involve Bahamians occupying the
service posts and only "one or two management
According to Dr Johnson, the deficiencies in
the education system are connected to the "great
Bahamas land sale" that foreign investment has
become: "This is why the government continues
to allow the 'dumbing down' of education, as it is
only persons who are not educationally empow-
ered who you can give regressive jobs.'"
"We do not get any shares in the international
holding company to really profit from it," said Dr
Johnson, "so I am very concerned that when we
sell off all of these properties, we lose the title to
them forever. And when we do get a model of
development that we can properly use, there will
be no place to do it in."
"We, the Bahamian National Party, are looking
beyond that," he said. "We are looking at other
assets that the Bahamas has, and we see a post
touristic time. And if we plan now, we will be
able to continue to maintain the Bahamian stan-
dard of living."
When asked why the Bahamian public should
put its faith and trust in an new, third party, Dr
Johnson said: "The caliber of the people is,0w
you judge. If they are not doing right, don'.':en
give them 10 years. One term. And if \ oL do not
show signs of going in the right direction, out!"
He added: "In regards to what we will or;will
not do, at the end of the day, you ar. never sure
what a party will do. You have to trust them.
But if you know that people in the past have:had
opportunities and have not done it, then you
should be prepared to at least examine any enti-
ty that is offering an alternative.
"Look at its people, look at their record, and
then see for yourself, and having learned any-
thing, why give them a long lime if they are not
doing right." d
The BNP leader directed anyone interested in,
learning more about his party to its website,
He said that his party is about the young and
the progressive, it's motto being "The Bahamas
Dr Johnson wants to do away with the typical
lip service that Bahamians have been getting
from both sides of the political isle and truly lead
the Bahamas to a place where it can be globally
PA6~E 12, SATURD/H'', M~AY 6,2006
--_ vn as; I
SATURDAY, MAY 6, 2006
Fax: (242) 328-2398
MIAMI HERALD SPORTS
have less than a week to
perfect their physique if
they want to be crowned
victorious in the Novice
The Novice champi-
onships, which mark the
beginning of the season
for the Bahamas Body-
(BBF), will be held on
May 13th at the Wyndham
Crystal Palace Ballroom.
With a different twist on
this year's championships,
president of the BBF Dan-
ny Sumner is looking for-
ward to the event, espe-
cially with the introduc-
tion of high school ath-
Sumner said: "For the
first time in the history of
the federation we will
have high school students
participatingin the body-
building and fitness
events. The champi-
onships will have a differ-
ent twist and we welcome
this because last year we
didn't host it.
"We are more prepared
ihi. \Neair arid in amuchi-
better position to pull oiff
the kind of event we are
looking for. Officially we ,
have a sponsor that came
on board, Satellite
Bahamas, so we are grate-
ful for that as we antici-
pate a great show."
The championships was
supposed to be in its 20th
year, but, due to the lack
of sponsorship and ath-
letes' participation, the
federation opted not to
host the annual event.
But, according to Sumn-
er, the championships
have evolved and all the
participants are entering
the championships for the
Sumner revealed that in
past years the federation
welcomed back body-
builders who weren't able
to place in their perspec-
tive divisions, but this will
not be the case for this
SHERMAN WILLIAMS, of the Bahamas, right, throws a right to the head of Gabriel Brown during the tenth round of their heavyweight bout Saturday, March
1, 2003, in Las Vegas. Williams has agreed to fight Earl Ladsen at short notice.
(AP FILE Photo/Mark J. Terrill)
By KELSIE JOHN!
Junior Sports Rep
ast minute f
STEPPING up for a fight at the last
minute is no problem for the NBA
world title holder Sherman 'Caribbean
Just hours before the sounding of
the bell, the fighting machine agreed to
step into the ring for an eight round
fight, after one of the boxers
in his boxing camp declined the invi-
The decision to fight in the Cinco
De Mayo show came late Thursday
evening, and has scheduled Williams to
go up against Earl Ladsen.
For Williams stepping back into the
ring at the Ybor City Multi Fight Com-
plex, in Tampa, Florida, will only bring
The Ybor City Multi Fight Complex
is the arena where Williams won his
NBA title, knocking out his opponent
in the second round.
Williams said: "I wasn't scheduled to
fight, this match-up was supposed to be
between two of the guys out of my
camp, but one of them pulled out of
* MARK KNOWLES
Opponents at the
S Mark Knowles
BAHAMIAN tennis ace
S Mark Knowles may be fresh
S from another title winning
performance, but he suffered
a shock defeat yesterday -
against two opponents!
Knowles played solo against
doubles pair Juan Bacardi and
Jared Turnquest and came off
,:. second best in the single game
shootout at Lyford Cay.
'.: Knowles said afterwards:
S"Juan wore me down. I have
Sthe talent but physically I
was no match."
It Was all in the name of fun
of course, and proved that, to
beat the best, you need the
S numbers on vour side!
the fight at the last minute. So my man-
agers were able to put together the
fight for me on Thursday.
"That's less than a day's notice, but
I am ready. It doesn't matter when the
fight is scheduled as long as the fight-
er is ready and I am ready for the fight.
"The funny thing about the whole
fight is I will be stepping back into:the
same arena where the title shot was
held. I am hoping for the same restfts,
if not a knock-out then I will just h've
to punish him through the eight
Admitting that his training for fights
extends from anywhere between four
to six weeks, Williams said he is more
confident now and a last minute fight
couldn't come at a better time.
Although he hasn't stepped into the
ring since his title win on March 31st
over David Washington, the champ
said that his training never stopped
and, as a result, he is learning how to
master attacking his opponent's body.
Williams said: "Even though I didn't
have a lot of time to study my oppo-
nent like in other fights, I know off
hand that he is a .tough guy, durable
and he is a big puncher.
"He will be ready to fight because he
was training for another fight so I am
sure he is fighting condition. Even
though this wasn't a fight designed for
me I am capable of stepping into the
ring to do my thing.
"Training doesn't stop. I won the
title shot with a second round knock-
out on Saturday and that Monday I
was back into the ring working out. I
am in great shape, feeling great.
"You know what is really giving me
the edge, the fact that I didn't have to
go the distance in the last fight, so I am
not that banged up. I am in great shape
and ready to get it on."
Williams is now strutting a 29-10-2
win-loss record. He has 16 knock-outs
under his belt.
c~k-~.:- . ''
PAGE2B $t-~ MAYPO200
____^^^^mm~~~iu^^^ .^B|^ *
lhall action from
Ida .- -
* ABOVE: SAC's Aooni Seymour bumps
the ball in junior girls pla..
(Photo: Felip Mlajor/Tribune stafj)
LEFT: SAC's erae S\weeing
bumps the ball o'er the net against P\WH
in junior girls play.
(Phoro: Felipe M.ajor/Tribune staff)
41 .,%, 1,
*^*-,~ a.r~' .
I-WA'S'^A' *.' -
* PWH'S Q'Jannis Wilson spikes the ball against SAC defenders in junior girls play.
(Photo: Felipe Major/Tribune staff)
.1riY, MAY 6, 2006
omi UrIUMY YIVIt 10, ZUU1, I-A(.t;b
rjga' ~ 'l: .~ .a'I
$~ '1 .
' r' i'sA _
* ABOVE: SAC'S Kr3~tal Christie
and Kings\r a's Ashley Ne% bold go
head to head.
(Photo: Onan Bridgewater)
IMLiSGRO E in action for SAC
(Prhoo: Felip; Mlajor/
Tribune staff )
PAGE 4B, SATURDAY, MAY 6, 2006
.= I I I
Banistmo International (Bahamas), Ltd.
For the Year Ended December 31, 2005
(Expressed in United States Dollars)
Due from banks (Notes 3, 8 and 9)
Non-interest earning deposits
Interest earning deposits
SSecurities purchased uno salee
agreements (Notes 8 and 9)
Investment securities (Notes 4 and 9)
SLoans, net (Notes 5, 8 and 9)
Other assets (Notes 6, 8 and 9)
,Liabilities and Equity
SCustomers' non-interest bearing deposits (Notes 8 and 9)
i Customers' interest bearing deposits (Notes 5, 8 and 9)
Financing received (Notes 8 and 9)
Other liabilities (Notes 8 and 9)
S Total liabilities
Authorized 20,000,000, common stock at $1 each
Issued and outstanding 11,000,000 shares
Additional paid-in capital
Tota abilities and equity
Signed as ppr v by the Board on March 3,2006:
1. General Information
Banistmo International (Bahamas), Ltd. (the Bank) was incorporated in the Commonwealth
of The Bahamas on March 28, 1989 and is licenced under the Banks and Trust Companies
Regulation Act, 2000 to carry on banking and trust business from and within The Bahamas.
The principal activities of the Bank are commercial and retail banking. The Bank is a wholly
owned subsidiary of Primer Banco del Istmo, S. A. (the parent Bank) which is incorporated
in the Republic of Panama. The ultimate parent company is Grupo Banistmo, S.A.,
incorporated in Panama in 2005. All significant balances with the parent Bank and
companies in which the parent Bank controls 20% or more of the issued share capital (related
parties) are disclosed in the balance sheet.
The Bank is a member of a group of affiliated banks and as disclosed in Note 8 of the balance
sheet, has balances with its Parent Bank. Because of these relationships, it is possible that the
terms of these transactions are not the same as those that would result from transactions
among unrelated parties.
The registered office of the Bank is located at Collins Avenue & 4th Terrance, Centerville,
Seventeen Shop Building, Nassau, Bahamas.
2. Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation of the balance sheet are set out
below. These policies have been consistently applied to all the years presented, unless
(a) Basis of Presentation
The balance sheet has been prepared in accordance with International Financial Reporting
Standards (IFRS). The balance sheet has been prepared under the historical cost
convention, as modified by the revaluation of investment securities available-for-sale.
The Bank's management has made a number of estimates and assumptions relating to the
reported amounts of assets and liabilities and disclosure of contingent liabilities to
prepare this balance sheet, in conformity with IFRS. These estimates are subjective in
nature, involve uncertainties and matters of significant judgment and, therefore, cannot be
determined with precision. Actual results ultimately may differ from those estimates.
(b) Cash Equivalents
The Bank considers as cash equivalents, all deposits with original maturity of three
months or less.
(c) Financial Assets
The financial assets are classified in the following three categories: Loans, held-to-
maturity investments; and available-for-sale financial assets. Management determines the
classification of its investments at initial recognition.
Loans are non derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They arise when the Group provides money, goods or services
directly to a debtor with no intention of trading the receivable.
Held-to-mdturity investments are non-derivative financial assets with fixed or
determinable payments and fixed maturities that the Bank's management has the positive
intention and ability to hold to maturity. Were the Bank to sell other than an insignificant
amount of held-to-maturity assets, the entire category would be tainted and reclassified as
Available-for-sale investments are those intended to be held for an indefinite period of
time, which may be sold in response to needs for liquidity or changes in interest rates,
exchange rates or equity prices.
Purchases and sales of financial assets, held-to-maturity and available-for-sale are
recognized on the trade date, the date on which the Bank commits to purchase or sell the
asset. Loans are recognized when cash is advanced to the borrowers. Financial assets are
initially recognized at fair value plus transaction costs for all financial assets not carried at
fair value through profit or loss. Financial assets are derecognized when the rights to
receive cash flows from the financial assets have expired or where the Bank has
transferred substantially all risks and rewards of ownership.
Available-for-sale financial assets are subsequently carried at fair value. Loans and held-
to-maturity investments are carried at amortized cost using the effective interest method.
Gains and losses arising from changes in the fair value of available-for-sale financial
assets are recognized directly in equity, until the financial asset is derecognized or
impaired at which time the cumulative gain or loss previously recognized in equity should
be recognized in profit or loss.
The fair values of quoted investments in active markets are based on current bid prices. If
the market for a financial asset is not active (and for unlisted securities), it establishes fair
value by using valuation techniques, that include the use of recent arm's length
transactions, discounted cash flow analysis and other valuation techniques commonly
used by market participants. Equity securities for which fair values cannot be measured
reliably are recognized at cost less impairment.
(d) Securities Purchased under Resale Agreements
Securities purchased under agreements to resell (reverse repo) are recorded as a separate
asset account. The difference between the sale and repurchase price is treated as interest
and accrued over the life of the agreements using the effective interest method.
(e) Impairment of Financial Assets
Assets Carried at Amortized Cost
At each balance sheet date, the Bank assesses whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of
financial assets is impaired and impairment losses are incurred if, and only if, there is
objective evidence of impairment as a result of one or more events that occurred after the
initial recognition of the asset (a 'l6ss event') and that loss event (or events) has an impact'
on the estimated future cash flows of the financial asset or group of financial assets that
can be reliably estimated.
Objective evidence that a financial asset or group of assets is impaired includes
observable data that comes to the attention of the Bank about the following loss events:
significant financial difficulty of the issuer or obligor;
a breach of contract, such as a default or delinquency in interest or principal
granting to the borrower, for economic or legal reasons relating to the borrower's
financial difficulty, a concession that the lender would not otherwise consider;
it becoming probable that the borrower will enter bankruptcy or other financial
the disappearance of an active market for that financial asset because of financial
observable data indicating that there is a measurable decrease in the estimated future
cash flows from a group of financial assets since the initial recognition of those assets,
although the decrease cannot yet be identified with the individual financial assets in
The Bank assesses whether objective evidence of impairment exists individually for
financial assets that are individually significant, and individually or collectively for
financial assets that are not individually significant. If it determines that no objective
evidence of impairment exists for an individually assessed financial asset, whether
significant or not, it includes the asset in a group of financial assets with similar credit
risk characteristics and collectively assesses them for impairment. Assets that are
individually assessed for impairment and for which an impairment loss is or continues to
be recognized are not included in a collective assessment of impairment.
When a loan is uncollectible, it is written off against the related provision for loan
impairment. Such loans are written-off when all the necessary procedures have been
completed and the amount of the loss has been determined.
Assets Carried at Fair Value
At each balance sheet date, the Bank assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired. In the case of equity investments
classified as available-for-sale, a significant or prolonged decline in the fair value of the
security below its cost is considered in determining whether the assets are impaired. If any
such evidence exists for available-for-sale financial assets, the cumulative loss measured
as the difference between the acquisition cost and the current fair value, less any
impairment loss on that financial asset previously recognized in profit or loss is removed
from equity and recognized in the statement of operations. Impairment losses recognized
in the statement of income on equity instruments are not reversed through the statement
of income. If, in a subsequent period, the fair value of a debt instrument classified4as
available-for-sale increases and the increase can be objectively related to an event
.occurring after the impairment loss was recognized in profit or loss, the impairment loss
is reversed through the statement of operations.
(f) Foreclosed Assets held for Sale
The foreclosed assets held for sale are initially registered at their fair value at the
foreclosure date; establishing a new cost basis. Subsequently, the foreclosed assets held
for sale are presented at the lower of carrying amount and fair value less costs to sell.
(g) Translation of Foreign Currencies
Functional and Presentation Currency
Items included in the balance sheet are measured using the currency of the primary
economic environment in which the Bank operates ("the functional currency"). The balance
sheet is presented in United States dollars, which is the Bank's functional and presentation
currency. Monetary assets and liabilities in currencies other than the United States dollar
are translated at rates of exchange prevailing at the year-end.
Due from Banks
At December 31, 2005 and 2004, the following is a summary and maturity analysis of due
Non-interest earning deposits
Time deposits up to 3 months
Cash and cash equivalents
Time deposits > 3 months
4. Investment Securities
Investment securities are summarized as follows:
Total investment securities
The movement in investment securities is summarized as follow:
At January 1, 2004
Changes in fair value, net
At December 31, 2004
At January 1, 2005
Changes in fair value, net
At December 31, 2005
Included in the balance of held-to-maturity investments as at 31 December 2005 is accrued
interest receivable amounting to $744,397 (2004: $733,312).
TRIBUNE SPORTS SATURDAY, MAY 6, 2006, PAGE 5B
Loans are summarized as follows:
Foreign commercial loans and overdrafts
Reserve for possible loan losses
$ 126,949,327 $ 274,024,474
S 124.448.348 2270754893
The movement in loan provision during the year is as follows:
Balance at beginning of year
Provision for loan impairment
Balance at end of year
$L 2.502.27 1-326251
Loans to related parties of $28,098,126 (2004: $119,388,050) are guaranteed by customers'
deposits of $45,109,113 (2004: $28,833,738).
Past due loans amounting to $484,253 (2004: $520,620) are fully collateralized.
6. Other Assets
Other assets are as follows:
Foreclosed assets held for sale
Furniture and equipment, net
S 6.219.935 $ 9692707
7. Income Taxes
The Bank is not subject to income tax in The Bahamas.
8. Balances with Related Parties
At December 31, 2005 and 2004, and for the years then ended the significant balances with
related parties are summarized as follows:
Due from banks
Securities purchased under resale
,-' >r .,
$ 16,704,142 $ 23,739,200
S 47.281.066 $146.439.240
$ 31,875,576 $383,569,449
.. 71,089,623 .... 1,355,548
1 102.965.199 $384.925.240
Use of Financial Instruments
A. Risk Management of Financial Instruments
The Bank takes on exposure to credit risk, which is the risk that the counterpart will be
unable to pay amounts in full when due. The financial assets that are potentially exposed
to credit risk are interest earnings deposits and loans. The interest earning deposits are
mainly placed with related entities and prestigious financial institutions.
Exposure to credit risk is managed through regular analysis of the ability of borrowers
and potential borrowers to meet interest and capital repayment obligations and by
changing these lending limits where appropriate. Exposure to credit risk is also managed
in part by obtaining collaterals.
The geographical distributions of assets and liabilities are as follows:
Central America and Caribbean
North America and Other
Central America and Caribbean
North America and Other
Interest Rate Risk
The Bank takes on exposure to the effects of fluctuations in the prevailing levels of
market interest rates on its financial position and cash flows. The Bank takes on exposure
to interest rate risk as a result of not controlling the margins that should exist among its
assets, liabilities and off-balance sheet financial instruments.
The Bank manages this risk through policies controlling the
instruments, including the maximum exposure for loss in their fair va
cash flows. These policies take into consideration maintaining prud
Sthe assets and the liabilities. Because of the limited nature of its
views this risk as low.
Management of interest rate risk for assets and liabilities consid
contractual clauses, dates of review of prices, effective rates and
financial instruments. Credit agreements set the interest rate for eaci
related to managing interest rate risk are monitored by a Special Cc
by the Board of Directors.
The following are the ranges of effective interest rates collected and
the different assets and liabilities categories:
Interest earning deposits 1.50% 5.02%
Investment securities 4.25% 10.00%
Loans 2.97% 13.00%
Customers' interest bearing deposits 2.00% 12.00%
Assets and liabilities subject to change in interest rates are detailed as follows:
limits for financial
value, future gains and
ent margins between
operations, the Bank
ers factors, such as
maturities for both
h loan. The policies
paid by the Bank in
Due from banks
Securities purchased under
3-6 6 month
Mnnth Tn 1 vnar
$ 32,724,638 S
- S 87,538 S 32,812,176
~6L&6g1.2n1 LW48 L40L A-.2 1J.16W UILUMh.2
$ 4,524,701 S 8,081,525
5139.051.945 S 1.142.969 S 4.524.701 S 8.081.525
Due from banks
Securities purchased under
resale agreements .
3-6 6 month
Month To 1 year
S 'S S
- $ 105,931
L62& 64 L1. 59.137.377.974 5 72.J0U9Z LM2 N .ZIU=
$ 97,085,018 $ 844,318 S 8,115,062 $ 1,134,975
s342o07o3222 L LtJ 97AJ.0a L JA38S .1502 .821 Li4~2UM88
Liquidity risk is the risk that the Bank will be unable to fulfill all of its obligations. The Bank
mitigates this risk by setting limits on the minimum proportion of funds available in high liquidity
instruments and limits on inter-bank and other borrowing facilities.
The maturities of assets and. liabilities, based on the remaining period at the balance sheet to the
contractual maturity date, are the following:
$ 28,936,668 S
Due from banks
Securities purchased under
th To 1 year
S 3,875,508 S
S 40.247.180 S 96.238.375 3.7.606 S~2886627
S 4,534,407 $ 8,343,081 $ S 82,702,587
s139.852i238 s iLia
Net liquidity gap
Due from banks
Securities purchased under
Net liquidity gap
U21 M 535S712M773 LiUl292 L.L0 J=A0
$ 54,618,235 $
S 82.905.687 5141.423.967 $186.967.870
?$341,394,243,:: $S 97;283,797;2
-1,355,548. , .. -
S- -847;31 "1 833V68I;76',t S T'-
$2296 M L2I UM L L= SSM-20-14 2IJ
(5247 873 70fl (514.378 1103 81057.3 $178229.29 ,5L1.2J3 S5.3.3
B. Fair Value of Financial Instruments
The fair value of a financial instrument is the current amount that would be exchanged
between willing parties, .other than in a forced liquidation. Fair value is best determined
using current market prices, if any
Fair value estimates are made at a specific point in time, based on relevant market
information and information about the financial instrument. These estimates do not
reflect any premium or discount that could result from offering for sale at one time the
Bank's entire holdings of a particular financial.instrument. These estimates are subjective
in nature and involve uncertainties and matters of significant judgment and, therefore,
cannot be determined with precision. Changes in assumptions could significantly affect
Following assumptions were used by the Bank in estimating fair value disclosures for the
most important financial instruments:
Due from banks
The carrying amount of due from banks approximates their fair values due to their
liquidity and short-term maturities.
Loans are net of provision for impairment. The estimated fair value of loans represents
the discounted amount of estimated future cash flows expected to be received. The loan
portfolio is substantially short and medium term and the effective interest rate
approximates market rates, thus its carrying amount approximates its fair value.
The fair value of the investments securities is based on market prices or quoted market
prices for similar securities based on expected cash flows on such investments or recent
buying offers, as disclosed in Note 2.
Deposits and financing received
The estimated fair value of deposits received with no stated maturity, such as current and
savings accounts is the amount repayable on demand, which is equivalent to the carrying
The fair value of time deposits and financing received approximate their carrying
amounts, since they have short and medium term maturities.
10. Critical Accounting Estimates and Judgements in Applying Accounting Policies
The Bank makes estimates and assumptions that affect the reported amounts of assets and
liabilities within the next financial year. Estimates and judgements are continually evaluated
and are based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
(a) Impairment losses on loans
The Bank reviews its loan portfolio to assess impairment at least on a quarterly basis. In
determining whether an impairment loss should be recorded, the Bank makes judgements
as to whether there is any observable data indicating that there is a measurable decrease in
the estimated future cash flows from a portfolio of loans before the decrease can be
identified with an individual loan in that portfolio.'This evidence may include observable
data indicating that there has been an adverse change in the payment status of borrowers
in a group, or national or local economic conditions that correlate with defaults on assets
in the Bank. Management uses estimates based on historical loss experience for assets
with credit risk characteristics and objective evidence of impairment similar to those in
the portfolio when scheduling its future cash flows. The methodology and assumptions
used for estimating both the amount and timing of future cash flows are reviewed
regularly to reduce any'differences between loss estimates and actual loss experience.
3-6 6 month More than
Month To 1 year 1 year
- $ 3,870,130 S
iviotu NUIIU LUI yer IY~r ygoLI.L
I .....tv I n
I I _
Certain figures have been adjusted to conform with the presentation in the current year
including cash and cash equivalents in the statement of cash flows.
INDEPENDENT AUDITORS' REPORT
East Hill Street
P.O. Box N-3910
Telephone (242) 302-5300
Facsimile (242) 302-5350
To the Shareholder of Banistmo International (Bahamas), Ltd.
We have audited the accompanying balance sheet of Banistmo International (Bahamas), Ltd.
(the "Bank") as of 31 December 2005. This balance sheet is the responsibility of the Bank's
management. Our responsibility is to express an opinion on this balance sheet based on our
We conducted our audit in accordance with International Standards on Auditing. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about
whether the balance sheet is free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall balance sheet presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the balance sheet referred to above presents fairly, in all material respects, the
financial position of Banistmo International (Bahamas), Ltd. as of December 31, 2005 in
accordance with International Financial Reporting Standards.
March 3, 2006
PAGE 6B, SATURDAY, MAY 6, 2006
THIBUNE UH i S
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41 g Wt I
Contract Brkl r"
From Bad to Worse
Both sides vulnerable.
VK J 9
+ A J 8 5 2
+AKJ 10 643
South West North East
S4V 44* 5V 54
6 V 6 Pass Pass
7 V Piss Pass Dble
Opening lead ace of spades.
This deal occurred in a team-of-
four match. Maybe what happened
shouldn't have happened, but the fact
is that it did.
At the first table, where Team A
held the North-South cards, the bid-
ding went as shown. South had no
good reason to think that six spades
could be defeated, so he bid seven
hearts, not expecting to make it but
entirely willing to suffer a small loss
in ordei to j..,id the possibilii of a
much greater one. .
0 0 0
STo his surprise, however, South
wound up making the grand slam
after West made the abominably bad
lead of the ace of spades instead of
the ace of clubs. This allowed
declarer to get rid of both of his club
losers on dummy's diamonds to rack
up a score of 2,470 points.
This outcome was surely bad
enough from Team B's. viewpoint,
but matters got infinitely worse at the
second table, where the bidding
South West North East'
4V 44 5~ 5+-
6 V 6 4 Dble
This time Team A's East-West pair
got to six spades and again came out
on top when North chose the king of.
hearts as his opening lead. Declarer
ruffed, drew trumps, cashed his
clubs, and so lost. only; a diamond
trick to tack on an additional 1,660
points. Team A thus gained the
incredible total of 4,130 points on
this one deal!.
Of course, North could have
Stopped six'spades by leading a dia-,
mond instead of a heart, but his team
would still have lost 2,270 points,on
the deal.'Then too, had the defense at
each table found the winning lead,
STeam B would have finished with a
S 700-point gain. As it was, though, the
S total swing came to an astounding
4,S30 point. ,
HOW malfy words of -
four letters or more
can you make from B
the letters shown
here?In making a
word, each letter may
be used once only. I m
Each must contain the
centre letter and there
must be at least one L
nine-letter word. No
plurals or verb forms
ending in "s", no words with initial capitals and no
words with a hyphen or apostrophe permitted. The
first word'of a phrase is permitted (e.g. inkjet in
Good 15; very good 22; excellent 29.
CRYPTIC PUZZLE .1 I 2 4 I6
1 Struck a blow against telephone
7 Do the drill by the book? (8)
8 Equipment, note, for flying (4)
10 Calm as detectives with
11 Unusually-l amount
of current (6)
14 The decmalized
16 If you'll bear with me, this Is the
North Star (5)
17 Regardsas a key
19 A scrappy sort of mix
21 As composed for a person In the
National Theatre? (5)
22 Hooded king? (5)
23 In the cosmos, somewhere, it's
26 Supporter it's possible
to trust (5)
28 Runner n a rodent race (3)
29 t contains vitalpersonal
30 Foolscap was topping
for him (6)
31 As faras the place where you turn
--32 Do gull, when doing so, flyabout
less than a foot? (8)
33 A terribly funny utterance? (6)
Yesterday's cryptic solutions
ACROSS1, Marat 6, Drier 9, Sweetle 10, Gusto 11, Sarge
12, G-r-aap 13, Retrial 15, Sub 17, Eton 18, Scrape 19,
A-bout 20, C-lassy 22, Roar 24, Tel. 25, Annoyed 26,
Hubby 27, Adder 28, Maxim 29, Wet suit 30, Brand 31,
DOW 2, A-mule-t 3, Astern 4, Two 5, Pear 6, DisseCt.
7, Reep 8, E-GG cup 12, Gab-by 13, React 14, Tot-a-L
16, Savoy 16, Be-ar-d 18, Sunny 19, Ass-ured 21, Leader
22, Rotate 23, Aerial 25, Ab-us-e 26, He-WN 28, Mid
1 Barred In London,
this building? (6)
2 Possibly rocketing figures? (6)
3 Whats done, having decided not to
Involve police (4)
4 Head gir?(7)
5 Picture element, possibly
a multiplex part (5)
6 Composer bemused In
the brewery (5)
8 Shakespeare wrote her
to kss mel (4)
9 Exciting element? (3)
12 Writer of effortless verse (3)
13 Goes madly enough to scare? (5)
15 French footballer, but It could be
18 Having it, lad, you are it (5)
19 That criminal crowd (3)
20 Less thah the whole area
of pasture (3)
21 Famously but notfitly (7)
22 Incurable snarter? (3)
23 He diverts the
currents at 25" (6)
24 German cotton centre (4)
25 River dammed at Amsterdam,
26 Felixstowe's school? (5)
27 He makes
capital love (5)
28 The stuff of drama (3)
30 Prison vessels? (4)
Yesterday's easy soluons -
ACROSS: 1, Buxom 6, Pecan 9, Refusal 10, Crown 11,
Cause 12, Stain 13, Tallboy 15, Wet 17, Oral 18, Binary
19, Relic 20, Scenes 22, Cede 24, Tan 25, Reveres 26,
Cores 27, Spook 28, Genus 29, Pelican 30, Steed 31,
DOWN: 2, Uproar 3, Orwell 4, Men 5, Musty 6, Pacific 7,
Elan 8, Answer 12, Sores 13, Toast 14, Laden 15, Wafer
16, Tyres 18, Bites 19, Revoked 21, Carpet 22, Cement
23, Deduct 25, Resin 26, Cope 28, Gas
1 Holy (6)
7 Collided (8)
8 Peruse (4)
10 Interval (6)
14 Mimic (3)
16 Narrow (5)
S17 Encourages (4)
19 Swindler (5)
21 Ethical (5)
22 Engine (5)
23 Celebrity (4)
26 Lifted (5)
28 In favour of (3)
Dutch cheese (4)
1 Fashing light (6)
2 Goes over
3 Eat (4)
4 Chief city (7)
5 Thong (5)
8 Male deer (4)
9 Greeting (3)
12 Rodent (3)
13 River-mouth (5)
15 Pulsate (5)
18 Magic spirit (5)
19 Bed (3)
20 listening organ (3)
21 Check (7)
22 Encountered (3)
23 Comfort (6)
25 Staggered (6)
26 Large mammal (5)
28 Craze (3)
30 Religious group (4)
I 6 k I
I Iv op
-- I ,
ARIES Mar 21/Apr 20
It's time to recover from some bad
luck you've been having, Aries.
Wallowing in misery won't get you
anywhere, and it's not in your
nature. Cheer up and press on.
TAURUS'- Apr 21/May 21
If you keep up your current pace,
Taurus, you're bound to run yourself
into the ground. Burning the candle
at both ends can have some danger-
GEMINI May 22/Jun 21
If you're considering giving your
opinion on a family member's per-
sonal matter, you might want to
think again. If you say anything,
you're just bound to cause a war;-
CANCER Jun 22/Jul 22 "
You've been having ongoing diffi-
culties with Virgo, Cancer. You just
can't see eye to eye, and are in a con-
stant battle of wills. Lighten up and
take the higher road.
LEO Jul 23/Aug 23
If you've been feeling trapped, Leo,
it's time to change your situation for
the better. Tell someone you trust
that things have to be reassessed
wrihin your home life.
VIRGO Aug 24/Sept 22
Stop going on the defensive all the
time, Virgo. You're constantly trying to
validate your position, to others.
Although you think everyone cares, in
reality they aren't all that concerned.
LIBRA Sept 23/Oct'23
The excitement level in your life has
begun to die down, Libra. Will you be
able to make do with a more humdrum
schedule for a while? Mull over the
thought of relaxation.
SCORPIO Oct 24/Nov 22
You're constantly being chastised for
the purchases you make, Scorpio, and
it's starting to get on your nerves.
Speak to your spouse or partner about
SAGITARIUS Nov 23/Dec 21
You're on the brink of being pushed
over the edge with a situation at
home, Sagittarius. While you've held
your tongue for this long, a mini emo-
tional explosion may be justified.
CAPRICORN Dec 22/Jan 20
Stop beating around the bushin
regards to a decision that needs mak-
ing, Capricorn. Deep down,.-yiu
know the answer and you're avoiding
saying it out loud. &
AQUARIUS Jan 21/Feb 1,
You're stretched too thin, Aquaiu
and it's starting to take its toll-id
get on your nerves. Speak uO (o
those who will listen and can. hlp
with your situation.
PISCES Feb 19/Mar 20;;
Make some time for you, Pij4bs,
because after this week you'll t; 40
busy you won't have much time to
think about anything.
CHES b Lenar Bade
Emesto Inarkiev v Petr Kiriakov,
Russian championship 2003.
Today's pule is an odd-looking
diagram, emanating from
grandmaster Kriaov's black
strategy of Bf-b4xc3, then
launching a long-range attack via
the a8-hl white diagonal. ilt not
so easy for White to counter this
plan, since f he allows a black
knight to settle on e4 and then
routinely castles, Black wll whip
up an attack on the kng by moves
lke f-f5, R6-h6, Qh4, and g5-4.
Several unfortunate Whites have
got checkmated through
underestimating this Idea. So
naridev elected to eight for the e4
square with his f3 pawn and f2
611 11 _
a b: c d e Ig h
knih. It looks logical, but it faHs
to a hidden black tactic. How did
Kirakov now gain material?
sasq Wpuin I 968 G9t4 S t Z"
ONl E WS W E15 Z I+EP(N- og tl'uM UoP 4e3
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