The decision in taken Willemstad to wind down ENNIA Life rather than accept a 600-million-euro loan from the Netherlands for a restart (see related stories) was a topic of debate throughout the monetary union. Especially the uncertain fate of about 30,000 pensions understandably sparked quite a bit of concern.
Curaçao’s government announced that during the next 25 years funds will be made available to safeguard benefits of pension recipients, whereby an annual amount of 30 million Netherlands Antillean guilders has been mentioned. Exactly where that money must come from was not made clear, but the Central Bank of Curaçao and St. Maarten (CBCS) is to contribute too.
St. Maarten’s precise share in this scenario remains to be seen. Of the policy-holders at risk 25,000 live in Curaçao, the others in St. Maarten and the Netherlands as well.
Nevertheless, Mullet Bay is among the troubled insurance firm’s assets, which makes it an extra sensitive matter for the government in Philipsburg. Finance Minister Ardwell Irion during the most recent press briefing even said a possible purchase of the property was discussed.
The latter seems like a tall order, especially because protecting the rights of local current and future ENNIA pensioners should be the priority here. Setting enough means aside for that purpose alone will put likely a strain on the national budget, while Justice Minister Anna Richardson has already expressed concern over any adjustment for the ENNIA issue possibly infringing on long-overdue retroactive payments for law enforcement personnel.
In addition, caretaker State Secretary of Kingdom Relations Alexandra van Huffelen states in today’s paper that this new solution came too late for the two Dutch Caribbean countries to get the promised low-interest refinancing of their COVID-19 liquidity support. They are now each being offered a short-term loan at 5.1%.
However, this will be for only one year and could change to a more favourable long-term refinancing once The Hague is convinced that the current approach to phase out ENNIA Life provides a solid solution for the 30,000 policy-holders. Hopefully by then those chiefly responsible for draining the company in the first place can also be held to account.
