WILLEMSTAD - While the Central Bank of Curaçao and St. Maarten (CBCS) imposed a restriction on Giro Bank since November 27, 2019, the bank still, for unknown reasons, continued paying some clients. These payments took place between November 27 and December 10, which is the date that the CBCS imposed the moratorium.

This is what became clear on last week Friday during the treatment of the case involving the Giro Bank. The summary proceeding was initiated by the government’s accountant’s bureau (SOAB) which was not able to transfer two million guilders from its account in Giro Bank to its other account at the Maduro & Curiel’s Bank (MCB).

SOAB’s lawyer was Lizanne Asjes. This lawyer forced the Central Bank to admit that there was preferential treatment after the restriction was imposed. SOAB was not able to get its funds but other companies were able to do so.

Before the moratorium on December 10 where are all accounts were closed, at the end of November, the Central Bank imposed a liquidity restriction. This was because of a cash run at Giro Bank. But according to court documents, Giro Bank did not comply and paid certain companies.

At the end of November, SOAB’s accountant ordered Giro Bank to transfer 2 million guilders from their account to MCB Bank. But, according to Lizanne Asjes, the funds should have been on SOAB’s account at MCB Bank on December 3. But this never took place. SOAB ordered the transfer before the moratorium placed on Giro Bank.

What angered SOAB was the fact that they discovered later that other companies were paid. The judge looked at the representative of the Central Bank and their lawyer Mayesi Hammoud. The judge admitted that Giro Bank made payments to other companies but not SOAB. According to the Central Bank this has to do with the liquidity policy during the emergency measures at the bank. The CBCS indicated that it varies for each case. But did not give much details about the cases because of the confidentiality.