Financial Market Brief Jan 29 2016
At the centre of the 2008 global financial crisis was the subprime mortgage crisis, which was caused by reckless borrowing standards and a lenient regulatory environment. Given the interconnectedness of the global economy, the financial crisis spilled over into other economies including the Bahamas. The economic growth rate declined, unemployment increased and the country’s national debt as a percentage of Gross Domestic Product (GDP) skyrocketed from 38.96% in 2008 to currently 76.51%. These factors, and others, resulted in the Bahamas’ own mortgage crisis. Up to November 2015, total private sector loan arrears stood at $1.2B or 20.0% of total loans. Of this amount, loans in default for 90 days or more, also referred to as nonperforming loans, totalled $890.3M or 14.8% of total private sector loans. Weekly_Market_Recap_29-Jan-2016 Click here for full Weekly Market Recap

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