Curaçao Turns down 600 million euro Dutch offer to safeguard Ennia pensions
October 5, 2023 –WILLEMSTAD – In a significant development, the government of Curaçao has declined a generous offer from the Netherlands to provide a 600 million euro loan aimed at securing the pensions of approximately 30,000 Ennia customers. This decision comes amid concerns within the Pisas cabinet that the repayment and interest obligations associated with the loan would place an excessive burden on the national budget, potentially limiting the availability of funds for pressing financial commitments.
The rejection of this financial lifeline suggests that the government is considering a phased approach to gradually winding down Ennia. Under this approach, policyholders would receive compensation from the government to offset the expected reduction in their pension payouts. However, the exact amount of compensation remains shrouded in uncertainty.
To fund this compensation plan, the government will rely on the Central Bank to increase dividend payments, requiring a financial reconfiguration. Additionally, there is a glimmer of hope that businessman Ansary, who has previously been convicted of mismanagement related to Ennia, might be persuaded to fulfill the court’s ordered compensation.
Negotiations between Curaçao and the Netherlands regarding the loan’s terms persisted until Tuesday. However, the impact of Curaçao’s decision on Sint Maarten and the welfare of policyholders in the latter territory remains uncertain, leaving many with unanswered questions.
