CLICO policyholders who agreed to Government’s bailout of the collapsing insurance company back in 2009 are being advised that they can make no claim for interest on outstanding monies from 2011 when CLICO and the Government signed an agreement covering the legal basis of Government assuming ownership of policies offered.
In a statement from the Ministry of Finance and the Economy this afternoon, it was indicated that the Government is not entitled to any interest on acquired policies and that it will only be repaid by CLICO exactly the amount it paid to assenting policyholders.
As a consequence, the Finance Ministry’s statement said, Government has not received any interest for the period between the offer and now and no claim for interest can now be made on CLICO on behalf of the assenting policyholders.
Non-assenting policy-holders will however now be paid the remaining 15 per cent owed on their policies, the statement said.
The Finance Ministry said that as of July 2016, auditors have confirmed that the amount expended by or due to Government on the CLICO bailout is close to 22 billion TT dollars.
Saying it is hopeful that it can recover a significant amount of this sum, the Finance Ministry said this will depend on the success of the disposal of the remaining assets of CLICO and of the CLICO Investment Bank among other things.
The Finance Ministry said valuations of CLICO subsidiaries Angostura Holdings Limited, Colonial Life World Brands and Methanol Holdings International have been completed with Angostura’s at 935 million and CL World Brands at 973 million Tt dollars.
No valuation figure was given for the Methanol company.
CLICO is still insolvent, the Finance ministry’s statement said, with an excess of liabilities over assets of some one billion dollars or a deficit of one billion.
And as such, the Central Bank of Trinidad and Tobago says, it is not in a position to relinquish control of CLICO at this time, the statement said.