WILLEMSTAD – The Government Accountants Bureau (SOAB) has written down nearly XCG 3 million in funds held at the collapsed Girobank, highlighting the continuing financial consequences of the bank’s failure for public institutions.
At the end of last year, SOAB still had more than XCG 3.6 million deposited at Girobank. However, the organization has been unable to access these funds since the Central Bank of Curaçao and Sint Maarten (CBCS) imposed a moratorium on the troubled financial institution in late 2019.
The moratorium was introduced as Girobank faced serious financial difficulties, restricting depositors' access to their money and eventually leading to a controlled resolution of the bank.
The resolution process is being supported by a loan from the Netherlands, which was made available to facilitate the settlement of Girobank's obligations. Under the financial arrangements, the Dutch loan must first be fully repaid using proceeds recovered from the bank's remaining assets.
Only after that obligation has been satisfied can any remaining funds be distributed to depositors who have not yet recovered their money.
This repayment structure creates significant uncertainty for larger account holders, who are expected to lose a substantial portion of their deposits permanently.
For SOAB, the situation has now resulted in a formal accounting adjustment. The organization has recognized a provision for an anticipated loss of approximately XCG 3 million on its own Girobank deposits.
The write-down reflects the expectation that a significant portion of the money will not be recovered through the bank's resolution process.
However, not all of SOAB's frozen funds have been treated in the same manner.
An additional amount of more than XCG 635,000 was held in a third-party funds account associated with the government project PMO/Groeistrategie.
Because the project was carried out for the account and risk of the government of Curaçao, SOAB has not established a loss provision for this specific amount.
Instead, further agreements must be reached between SOAB and the government concerning how the outstanding balance will be handled as the Girobank resolution process continues.
The distinction means that while SOAB has recognized an anticipated loss on its own funds, the financial consequences associated with the PMO/Groeistrategie account remain subject to arrangements with the government.
The Girobank collapse continues to have financial repercussions years after the initial intervention by the Central Bank. Organizations and individuals with substantial deposits remain exposed to potential losses as the bank's assets are liquidated and outstanding obligations are settled.
The SOAB write-down illustrates how the consequences of Girobank's failure extend beyond private depositors and continue to affect institutions connected to Curaçao's public sector.
The final amount SOAB may recover will depend on the outcome of the bank's resolution process and the funds remaining after priority obligations, including repayment of the Dutch loan, have been satisfied.