WILLEMSTAD - Parties in the coalition will discuss the proposition on the table to reach a solution regarding the Ennia debacle. This was decided by the Council of Ministers during their recent meeting. Minister Javier Silvania of Finance, who was in charge of the committee, also announced the news on his Facebook page at the end of last week.
There were plans for the Government of Curaçao to make a decision on a solution for Ennia Caribe Leven, primarily. It was evident that during the meeting such an important topic could not addressed in the absence of several ministers. A committee led by Minister Silvania presented two options to solve the problem of Ennia Caribe Holding, specifically Ennia Leven. The three-member committee consisted of Kelvin Kleist from the Central Bank, Raymond Faneyte from SOAB, and Miguel Jackson. The committee arrived at two alternative solutions, where one would cost 1.2 billion guilders, while the other would cost 600 to 700 million guilders.
As mentioned in previous articles, Delloitte & Touche, together with international actuary Phenox, provided assistance. They arrived at two scenarios: either a "run-off" of Ennia Caribe Leven or creating a new continuation to establish the largest insurance company in the Dutch Caribbean. The decision lies in the hands of the Pisas Cabinet. Javier Silvania sent a letter to the President-Director of the Central Bank, Richard Doornbosch. According to the minister, a resolution committee was established. The committee worked on a report that needs to be presented to the Council of Ministers for a decision. The decision on the report was postponed due to the absence of several ministers.
The two scenarios presented in the resolution propose deferring payments in the financial market to address the Ennia debacle's impact on solvency. This was a consequence of past decisions that allowed the Ansary group to commit a theft of 1.1 billion guilders from Ennia Caribe Holding. In the "run-off" scenario, policyholders are expected to suffer significant losses on their pension rights. The discount is based on Ennia's current financial situation. In the run-off scenario, consideration must also be given to the discount that would be applied if the assets (valued on the pension exchange) were to be sold and at what price this would be negotiated. The continuation scenario has fewer consequences, but the community would also pay in this scenario. To continue with Ennia, despite the negative developments, experts estimate an investment requirement of 700 million guilders (again, without considering the 1.1 billion claim against the Ansary group). The continuation scenario, as mentioned, is better but also more complex to execute.
The press in St. Maarten has started questioning whether they should participate in any proposal that addresses the issue of Ennia and its solvency. St. Maarten has already expressed, through a parliamentary meeting, that they want to reclaim their rights to the Mullet Bay area. The land in question was expropriated from Ansary through a court decision, but Ansary is appealing the decision. Furthermore, St. Maarten is not inclined to use the Central Bank's reserves as proposed by the committee of three. To salvage Ennia or discontinue the pension part, it will cost the people of Curaçao between 600 million to 1.2 billion guilders.
