Willemstad/Philipsburg:--- As of March 21, 2022, financial institutions may once again submit approval requests for dividend payment for the financial year 2022. The Centrale Bank van Curaçao en Sint Maarten (CBCS) has decided to revoke the suspension of dividend distributions, given the recent developments of the COVID-19 pandemic, while considering the resilience of the financial institutions and the projected outlook.
In April 2020, the CBCS announced a temporary suspension of dividend distributions for financial institutions, by which the CBCS actively steered financial institutions towards creating additional buffers to withstand the impact of the COVID-19 pandemic on the financial sector. The financial sector was informed by the CBCS that institutions – in addition to self-implemented measures – were to suspend dividend payments until further notice. Adding the profits to the reserves is regarded as an effective way for institutions to enlarge their buffers.
The purpose of this measure was to create precautionary additional buffers, as the duration and impact of the corona crisis on the financial sector were still uncertain. The CBCS also aimed to, as far as possible, respond to the dynamic course of the COVID-19 pandemic. The recent developments regarding the pandemic seem to provide some breathing space for the economy, aimed at helping repair the economic damage brought about in 2020 and 2021.
The CBCS will assess all requests for dividend payment for the financial year 2022 on an individual basis. Approval of a request will, as in the past, be subject to - among other things - the risk profile of the institution, and its capital, solvability, and liquidity after dividend payment.
Willemstad, March 21, 2022
CENTRALE BANK VAN CURAÇAO EN SINT MAARTEN
