THE HAGUE - "The Netherlands has asked both Curaçao and Sint Maarten to come up with a solution to the problems at the pension insurer Ennia," responds Alexandra van Huffelen (D66), State Secretary for Kingdom Relations.
Recently, the government official held a digital press conference discussing the support provided by the Rutte cabinet to the islands through an investment program for the economy and energy transition. At the end, she mentioned sending letters to the three governments of the CAS islands (Curaçao, Aruba, and Sint Maarten) regarding refinancing, to indicate "the contours according to which we would like to shape that refinancing." The contents of those letters are still confidential, but with regard to Curaçao and Sint Maarten, Van Huffelen mentioned that "in connection with the repayment regime, the Ennia issue is also being considered." To the question isn't the refinancing about repayment of the liquidity support provided by October 10 and what more can Van Huffelen say about "the Ennia issue"?
Van Huffelen answered: "Indeed, it concerns the refinancing of the liquidity loans by October 10, 2023," she clarifies. However, the Netherlands has also asked both Curaçao and Sint Maarten (in addition) to "come up with a solution to the problems at the pension insurer Ennia."
"These problems are not only a societal issue because they involve the retirement provision of a large group of about 30,000 people, but they also pose a risk to the countries' budgets," says Van Huffelen.
Furthermore, "The intention is to achieve long-term refinancing of the liquidity loans, tailored to the financial capacity of the countries. It is important for the budget risks to be clear and for measures to be taken to manage those risks. If a solution is found for this problem, we can arrive at an appropriate refinancing."
Another question that was asked to Van Huffelen was what is being taken into account in The Hague regarding the Ennia issue? Referring to the amount of money involved. Is this an additional condition from the Dutch side or a point considered in the context of refinancing? And also, is there a formal request from Curaçao (and Sint Maarten) for Dutch assistance in relation to the Ennia matter?"
The State Secretary stated that the amount involved is something that should be discussed between Curaçao, Sint Maarten, and the Central Bank of Curaçao and Sint Maarten (CBCS). The countries have not made a request for assistance to the Netherlands.
If it were to happen that the CBCS needs to approach the governments of Curaçao and Sint Maarten, for example, because the owner of Ennia continues to refuse to contribute or return withdrawn funds to address the solvency shortfall, it is likely that a request for assistance will be made to the Netherlands. In early June, an important judgment from the Court of Justice is expected in the major liability case that the CBCS has brought on behalf of Ennia against owner Hushang Ansary and several former directors of Ennia. In the first instance, the CBCS/Ennia won the case in November 2021, with an award of damages of over one billion guilders.
If Ansary continues to refuse to cooperate in finding a solution, a request for assistance from the Netherlands could potentially involve hundreds of millions. For comparison, Curaçao received 911 million guilders in liquidity support in connection with the COVID-19 crisis.