So...if you're not fully convinced VAT is the right solution, you go full speed ahead with implementing it? Am I missing something here?

(1) How much of a damper are bad loans like these putting on banks' current and future willingness to lend to businesses and consumers (an engine of economic activity)?
(2) The non-performing portfolio might be "stabilized" now, but the $104 million question is will it mushroom after July 1 (if VAT is as economically detrimental as some segments believe it will be)?
(3) "Better than industry averages" is a useless metric when overall Bahamian loan delinquencies are horrendously high.
(4) “Any reduction in non-performing loans will be contingent upon the customer’s ability to resume mortgage payments and/or a ready and qualified market to purchase the underlying homes. We continue to seek ways to work along with our valued customers to retain their homes": good luck with that; not happening any time soon.

I was using the term "SMEs" as shorthand for "economic empowerment/independence for the average Bahamian" in general. "Entrepreneurship" for lack of a better word.

Why are all the new economic developments/job creation in the tourism industry? Creating and nourishing SMEs would be in the Bahamas' long-term economic interest, plus this would be a good foundation for any national development plan.

Why isn't the government championing SMEs?

I totally agree with you. During the recent Foreclosure Crisis in the US, home prices did not increase until the inventory of foreclosed homes cleared out the system. I suspect somewhat the same case here.

RBC's foreclosure supplement for January is sizeable. Some of those properties have been up for sale for at least two months. Of course, the big elephant in the room is that less people can now qualify for a mortgage to even snap up these foreclosed houses (or any other property).

The 8%+ mortgage rate doesn't help either.