A reported agreement between Curaçao and St. Maarten to deal with the Ennia crisis (see related story) appears reasonable enough under the circumstances. The main ingredient is that the two countries in the monetary union will earmark respectively 30 million and 2.3 million Netherlands Antillean guilders annually for 30 years to cover their pension policyholders, while the Central Bank of Curaçao and St. Maarten (CBCS) is to contribute an annual NAf. 15 million during the next 50 years.
The latter certainly seems justified, because CBCS was in charge of supervising the insurance firm when owner the Parman Group of Husang Ansary took so much money out that its life insurance branch is threatened with insolvency, putting the retirement benefits of some 30,000 people combined on the islands at risk.
As it regards public funds, the expected cost of this debacle to taxpayers is obviously huge at a total NAf. 1.7 billion. To persons who stood to – at least partially – lose their pension, however, the solution spells much-needed relief.
Mind you, that entire amount may not be lost, as legal proceedings are far from over and the court in Willemstad ordered shareholders to repay more than NAf. 1 billion. The troubled company also still has valuable assets including Mullet Bay.
For now, policyholders may rest assured that their built-up rights won’t be taken away or reduced. Important going forward is to see to it something like this can never happen again.
