WILLEMSTAD - Gl-RO Settlement Holding N.V. has achieved a remarkable feat this month by repaying 21 million guilders on the loan from the Land Curaçao. While the planned annual payment is over eleven million guilders, the holding has achieved a higher-than-expected operational result for the third consecutive year. 

This led to an additional repayment on the 170 million guilder loan that Land Curaçao received from the Netherlands in 2021. To date, Gl-RO Settlement has cumulatively repaid 121 million, leaving only 49 million guilders outstanding. 

Record Time 

The fifteen-year loan now appears to be repayable in just eight years. This is a unique achievement for Curaçao, where such repayments usually take longer. Directors Thomas Domhoff and Camillo Bakhuis say that this rapid repayment is good news for the people who are still owed money by the old Girobank. 

Normally, they would have to wait ten to fifteen years to find out if they get any extra money back. Thanks to GSH’s approach, they can now have clarity within four years. 

Problematic Loans 

When the holding took over Girobank's loans in April 2021, 84 percent of the loans were problematic and not being paid on time. By 2024, this percentage has been reduced to 32 percent. This good result has been achieved by approaching each customer personally and offering tailor-made solutions, whether it involves small consumer loans or large business loans. 

The solutions GSH employs are not common in the Curaçaoan market. They require extensive calculations and intensive monitoring but yield better results. The management has an automated care banking system that is much cheaper than traditional banking systems. Thanks to this innovative approach, GSH has been able to keep operational costs low and allocate more resources to repayments. 

Currently, there is the prospect of a possible additional payout of about ten percent on the outstanding claims of people still owed money by Girobank. The directors see opportunities to increase this payout by maximizing the income from the portfolio. This could be done, for example, by expanding the lending capability, allowing the holding to generate more interest income, benefiting the depositors. 

National Bank 

Recently, there has been political discussion about the idea of turning Gl-RO Settlement Holding N.V. into a national bank. This would not only increase the exploitation potential and the payout to those still owed money but also provide an institution for small loans to vulnerable groups in society. The Ministry of Finance and the Central Bank of Curaçao and Sint Maarten (CBCS) must decide on this.