It is somewhat reassuring to know that the Central Bank of Curaçao and St. Maarten (CBCS) will be more engaging and act sooner against financial institutions in the future for shortcomings and violations that can affect customers (see related story). President-director Richard Doornbosch was referring to, among others, the Ennia solvency crisis.
The latter left built-up pension rights of 30,000 people in the monetary union at risk. This will now cost Curaçao and St. Maarten – based on their number of policyholders each – annual amounts of respectively 30 million and 2.3 million Netherlands Antillean guilders for 30 years.
CBCS, which had supervision over the insurance company when too much money was being taken out, will contribute another NAf. 15 million per year over five decades. Curaçao’s government recently announced that its related payments won’t have to start until 2027 because experts foresee sufficient capital to meet obligations until then.
That spells good news because the negative budgetary impact will be delayed, although merely a proverbial “stay of execution” from the unavoidable. If nothing else, it buys time to use these funds for different important and necessary things over the next three years.
Speaking of which, should ongoing litigation with former owner Parman Group of Husang Ansary to claim damages prove successful in the meantime, at least part of the total sum could be recovered, as is the case with a possible sale of Ennia asset Mullet Bay.
In short: All is not lost.