WILLEMSTAD - The College of Financial Supervision (Cft) expressed its support for the continuation of the so-called 'ENNIA solution' in a letter to Minister of Finance Javier Silvania. According to the Curaçao government, this decision is crucial for resolving the financial issues of the private insurance company ENNIA after substantial amounts of money were withdrawn by owner Hushang Ansary. The Cft emphasizes that they want to be kept informed of all developments in this context.
The letter from the Cft, dated January 12, 2024, follows earlier reports in which the government of Curaçao proposed a possible scenario as a solution to the situation at ENNIA. Considering the significant socio-economic impact, the government of Curaçao sought solutions and asked the Cft for advice. An agreement between the countries Curaçao and Sint Maarten, as well as the Central Bank, dated December 15, 2023, supports the proposed solution.
Risks
However, there are risks associated with this agreement. For a period of thirty years, Curaçao must reserve a substantial amount in the budget. The financial space is limited, and the budget already contains other risks.
One of these risks is the situation surrounding the Curaçao Medical Center, and also the expected income from licenses for online gambling. The Cft believes it is not wise to use any space created by a reduction in interest on the debt of 911 million guilders immediately for other debts.