SINT MAARTEN (GREAT BAY) - Minister of Finance, Marinka Gumbs, will be in Parliament on Monday, October 7, 2024, for the second round of questions posed by the MPs regarding the Addendum she negotiated.to the controversial ENNIA Outline Agreement.
“I am optimistic that Members of Parliament will approve the ENNIA outline agreement and its accompanying addendum, as the approval carries significant implications for St. Maarten’s financial future,” the Minister said, high-lighting the fact that the Addendum would save government 37 million guilders.
According to the minister, “the 3,084 St. Maarten policyholders of ENNIA have faced considerable uncertainty regarding the retrieval of their invested funds. Therefore, approval of the outline agreement together with the Addendum will provide these policyholders with the assurance that their investments are secure and will be paid out.”
Minister Marinka Gumbs explained that said approval will also result in a substantial reduction in interest payments for St. Maarten. Specifically, the interest rate on COVID-19 loans, totaling 314 million guilders, will be reduced to 2.9%.
“This reduced interest rate will generate savings of 180 million guilders over the next 15 years on interest payments, freeing resources for other critical needs,” the minister added.
On the contrary, without the approval the interest rate could rise to approximately 6.8%, resulting in an additional 12 million guilders in interest payments annually, starting in 2025.
Another highlight of the negotiated Addendum is that St. Maarten would now have the “matching rights” to purchase Mullet Bay, which is at the center of the ENNIA saga.
“Although the property is privately owned, this would now ensure that St. Maarten, at least, has the first opportunity to secure this historically significant piece of property when it becomes available for sale,” Minister Marinka Gumbs stated.
However, should Parliament fail to approve the ENNIA outline agreement with its accompanying Addendum, St. Maarten will not be able to obtain additional capital investment loans.
“The increase in interest rates would push Sint Maarten to its maximum interest norm, making it impossible to secure financing for essential capital projects outlined in the 2024 budget amendment,” the Minister explained, adding: “The COVID-19 loans and the ENNIA situation are deeply intertwined, affecting St. Maarten’s ability to secure future capital investments.”
The Addendum the minister negotiated reduces St. Maarten’s liabilities by 37 million guilders, ensuring that St. Maarten will only pay for its own policyholders, because as part of this solution, St. Maarten will no longer contribute to policyholders from BES or Suriname, nor will it bear any costs related to the execution of ENNIA’s operations.
“The total savings of 37 million guilders under the renegotiated ENNIA agreement, combined with over 180 million guilders in savings on interest payments on the COVID-19 loans over the next 15 years, are critical to St. Maarten’s ability to implement key reforms,” Minister Marinka Gumbs said.
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