Bermuda has publicly backed the business in a bid to stifle concern about its future.

Mr. Larry Clinesmith, vice president of Canada-based Central Guaranty Trust Company, said yesterday he had every confidence in the success of the timeshare development.

He said he did not believe the financial problems of the Swiss-based York Hannover property group, to which it belongs, would have a negative effect on the Bermuda operation.

"While we have several credit facilities with the St. George's Club, they are not impacted by the difficulties York Hannover is having in Europe,'' he said.

He was referring to a banking scandal involving the Rothschild Bank of Zurich which allegedly made loans to the York Hannover group above the level permitted to a single client by the Swiss Banking Commission.

"We view the St. George's Club as a stand alone project,'' said Mr.

Clinesmith. "The difficulties of York Hannover do not affect our credit facilities at all.

"We expect to continue to support the project and continue to finance the construction which is presently underway.'' In 1990, Central Guaranty Trust Company lent York Hannover (St. George's) Ltd., which owns the Bermuda timeshare units, $9 million to build more units.

The loan was secured against the assets of the project.

In March of this year, Central Guaranty made available another $2.3 million for the construction of additional units. Another four are currently under construction.

There are now 65 fully-completed two bedroom, two bathroom condominiums at the site.

It is not known how or if the St. George's Club will be affected by the problems of its group because of the complicated ownership and operating structure of the group.

Mr. Clinesmith agreed York Hannover's structure was highly complex but said his business had been careful not to trip itself up in it.

"When we first became associated with the St. George's Club two years ago, we weren't prepared to take part in the complicated European structure at all,'' he said.

"Whatever happens in Europe, as far as we're concerned, does not affect our position and does not affect the St. George's Club.

"I have no reservations about the quality or nature of the management of the local project.'' It was revealed yesterday that Government inspectors visited the offices of the St. George's Club on Monday to inspect their books.

Mr. Alan Marlow, the club's general manager, said: "Government has in its normal course of business come in to ensure that we're in compliance with the Timeshare Act.

"There is nothing negative about any of this. They were checking to see if we had been paying our taxes, which we have, and things of that nature.'' He said the inspectors were satisfied with what they saw.