Published On: Tue, Apr 8th, 2014

Korpodeko approved financial assistance for InselAir

Insel AirWILLEMSTAD – The Development Bank Korpodeko approved a four million guilders financial assistance for the local aviation company InselAir.

The airline has requested a loan from the bank since last year. The financial assistance would have either come from Korpodeko or from the Curacao Airport Holding (CAH). InselAir has been going through some serious financial problems, especially after the South American country, Venezuela failed to pay the millions of dollars it owes to the company. InselAir was forced to take certain measures against the operations to and from Venezuela. The Venezuelan debt to InselAir is about 80 million dollars. The South American country has promised to start paying the debt.

The company’s cash flow has started to diminish and this puts pressure on the airline. The company has its obligations and without funds it will be forced to close down its operations. This is the reason why InselAir has asked the government for financial help.

Korpodeko has approved a financial help of more than 4 million guilders. InselAir has already received a part of this fund. The Development Bank has set some strict conditions to guarantee the repayment of this loan.

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