Published On: Fri, Oct 17th, 2014

CAH wants to pay 1.7 million, Government wants 5.5 million

airportWILLEMSTAD – Curaçao Airport Holding (CAH) believes it only has the financial means to pay 1.7 million guilders in dividend to the Government. The sole shareholder (the Government) believes, based on a report from the Ministry of Finance, that CAH must be able to pay 5.5 million guilders in dividend. The Bureau for Supervision and Standards Government Entities (STBNO) doesn’t have problems with the Government’s demand because it agrees with the dividend policy.

Recently the STBNO, based on the decision of the Council of Minister, gave its advice on the Government’s request to evaluate the dividend policy at CAH. The dividend policy, which was stipulated, indicates the following objectives: Solvability, Liquidity and Profitability.

The CAH’s position is, according to its dividend policy, to pay 30% of its profit (5.5 million), which is 1.7 million guilders. CAH also points to its budget in which it states that it will invest 30 million guilders in the period 2014-2016. CAH will cover 40% of this investment, which is 12 million guilders. The other 60% will come from local banks.

In the Ministry of Finance’s advice to the Council of Ministers, it states that, contrary to the CAH’s proposal, it proposes CAH to pay 5.5 million in dividend for the year 2012. The Ministry argues, saying that CAH’s properties and liquidities and also the investment of 34 million in 2012, which is twice more than the necessary own investment of three years and the dividend payment proposed by the Ministry. Besides that, CAH had a profit of 4.1 million in 2013, while the company expects a profit of 3.8 per year during the period 2014-2016. This will create the means to invest.

Therefore, the Ministry proposes a dividend payment of 5.5 million.

 

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