Continuation of Parliament’s plenary session today, Thursday on – among other things – the Ennia Outline Agreement (see related story) is important in particular for the troubled insurance firm’s 3,048 pension policyholders in St. Maarten. At the end of June Finance Minister Marinka Gumbs told the legislature she would pursue “a better solution” for them.
Earlier this month the caretaker minister clarified that a decision was up to Parliament. She believes not all possibilities have been exhausted.
The April 19 agreement signed by the former government is legally binding pending parliamentary approval. It commits Curaçao and St. Maarten to making annual payments for 30 years to keep afloat the company’s Life Division, while the monetary union’s Central Bank must do so for 50 years.
But there are other aspects, because solving this problem was a condition for favourable interest on refinancing Dutch loans. Any change at this late date could lead to the Netherlands withdrawing that offer.
Up to now the current government has not presented a viable short-term alternative either. Curaçao, which has 27,000 policyholders and will therefore pay a lot more, is also counting on this matter being settled.
Meanwhile, a legal battle with former Ennia owner Parman Group of Husang Ansary to recover many millions allegedly taken out against the rules continues and initial rulings were favourable in that sense. There is also the value of company asset Mullet Bay for which the court has now ordered an impartial assessment to consider.
This means amounts the two countries and their joint Central Bank will ultimately need to come up with may ultimately be reduced substantially. If the deal made is nevertheless rejected, those who do so had better have a feasible Plan B, otherwise there might be unwanted consequences.
