WILLEMSTAD - The clear message of the former President of the Central Bank Emsley Tromp during a recent radio interview at Z-86 was that the Central Bank of Curaçao and Sint Maarten (CBCS) did not act properly regarding the Giro Bank. There was also a breach of trust. But according to Emsley Tromp a solution is still possible.
Tromp mentions various missions of the CBCS. For example, there is a manual within the CBCS on how to deal with situations like this.
“For example, it is known within the financial world that you close a bank on Friday to prevent excesses and to prepare properly for the period that follows,” says Tromp, who does not understand why the Central Bank closed Girobank in the middle of the week.
In addition, he cannot believe that the CBCS - which manages the Giro Bank for which an emergency regulation has been issued for years - “discriminates and measures with two measures” when it comes to Girobank customers on Bonaire and Curaçao.
Tromp says that the Girobank branch was recently closed on Bonaire and all customers got their money back for 100 percent. The Curaçao customers receive a maximum of 10,000 guilders. The question is what these 10,000 guilders are based on, what criterion is used for this.
In the United States, the Federal Deposit Insurance Corporation (FDIC) guarantees $ 250,000. In Europe this is 100,000 euros. The question is whether the Girobank is closed temporarily or permanently.
A third point of criticism is that the CBCS is an institution that must radiate confidence and has always given the impression to the outside world that it will be fine with the Girobank.
Tromp indicated that despite the problems, CBCS has continued to support the bank. “With that you give a signal. By paying everything to Bonairean customers you also give the impression that the financial problems are not that great,” says Tromp. Clients have been able to continue to use the services of the Girobank, there have been advertisements on television and on the radio.
“CBCS has misled Girobank customers. But the finance minister, Kenneth Gijsbertha, has also given the impression that things are ok with the bank. The government is politically responsible. Even more so because the Country is a co-shareholder in the Giro Bank. We live in a very difficult time and this is very bad for the image and works counterproductively.”
The former president also points out that if the CBCS is in the minus, the government is obliged to supplement the budget.
“That is impossible with the current budget of the Country,” said Tromp. And finally, the solution: The major customers of the Girobank can be asked to become shareholders. Furthermore, talks must be held with the other banks that also have their responsibility. A guarantee fund could be opened via a National Decree in which borrowed money is deposited and repaid over a period of thirty years.”
“If the Girobank can be consolidated with this, a partner could be found. I am convinced that there is a way to solve the problem without major consequences for the Country's budget.”
