Published On: Wed, Sep 9th, 2015

AVA Airways must present bank guarantee before receiving economic permit

AvaWILLEMSTAD – The aviation company AVA Airways must present an irrevocable and unconditional letter of credit or bank guarantee in the amount of at least 48.9 million to be submitted to the Government of Curaçao.

This guarantee should be validly issues to guarantee the obligations of AVA for execution of its business plan as submitted. It should also be issued by a reputable international bank and confirmed by the Central Bank of Curaçao and Sint Maarten (CBCS).

This bank guarantee must be received by the Government before September 23 of this year.

The company was informed by the Minister of Traffic, Transport and Spatial Planning, Suzanne Camelia Römer of these conditions to receive an economic permit through a letter yesterday. The decision to request a bank guarantee is according to the Minister, based on an advice given by the Central Bank and the Government’s Accountant Bureau (SOAB).

“The CBCS advised us to ask for a bank guarantee. SOAB analyzed the business plan and recommended us to follow CBCS’ recommendations,” said the Minister.

When asked if she distrust the representatives of the company, because according to our information, this requirement was not necessary for other airlines that have requested an economic permit. Minister Camelia-Römer declared that there are now strict international rules for funding projects.

“It's not that there is mistrust with respect to the representatives of AVA Airways, but banks now have strict rules with funding of large projects. We need to know where the money comes from. All this in the context of the fight against terrorism and money laundering,” said the Minister.

The representatives of the airline were shocked. “This cannot be serious. We are not asking the government for money. We didn’t ask for anything and now we need a bank guarantee of 48.9 million dollars? This must be a joke.”

AVA Airways doubts that the same requirements was asked from other airlines. “I really wonder if in the past other airlines had to submit a bank guarantee to the government. We are now going to our local and American lawyers to see what the next step will be,” said a representative of the airline.

According to the representatives of the airline nowhere in the law states that they have to submit such a bank guarantee.

Click here for letter AVA Airways

According to the representative, the Government gives a wrong signal by requesting this bank guarantee. “The Central Bank says that Curaçao is in desperate need of investors. There is unemployment and there are many social problems. Now that you have a group that wants to invest, they are making if very difficult.”

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