After spending several months examining the options for recouping the investment made by the National Insurance Scheme (NIS) some years ago into the now defunct Colonial Life Insurance Company (CLICO) , the government has taken a decision to repay NIS itself.
Finance Minister Winston Jordan announced the decision at a press conference on Monday and said the possibility of NIS recouping the money that was owed by CLICO was highly unlikely.
Jordan said NIS and its beneficiaries were suffering terribly as a consequence and reminded of a 2009 Parliamentary resolution which had urged the government to do what it must to get back the money.
Jordan did not explain why the option of litigation was not pursued but said “it is the best the government could do at the moment.”
He explained that following a presentation to Cabinet last week, the government agreed to repay NIS through non negotiable Government of Guyana certificates.
The money will be repaid over a 20 year period commencing from January 1st, 2017.
A total of 5.6 billion, inclusive of interest, is to be repaid.
CLICO entered the Guyana market as an insurance provider in 1994 but by 2007 the institution was facing financial difficulties both in Guyana and across the Caribbean.
CLICO was forced to close its doors by 2009.
CLICO Guyana had approximately $6.9B invested in the Regional Insurance Company.
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