NIS to receive first payment from CLICO fiasco in January 2017

The Government on Friday signed an agreement to repay over $5.6B to the National Insurance Scheme (NIS) for investments made in the now bankrupt Colonial Life Insurance Company (CLICO).

According to the ministry of Finance, the agreement is in keeping with the Parliamentary Resolution 82 of 2009 and the Government’s commitment to assist the NIS to recover its investment in Insurance Company to prevent the loss of benefits to the NIS contributors and beneficiaries.

At a rate of 1.5% per annum, NIS will receive its first tranche of payment amounting to 317,359,002.94 in January 2017.

Signing the agreement on behalf of NIS, General Manager, Doreen Nelson stated that it is good to have the matter out of suspension.

Governor of the Bank of Guyana, Dr. Gobind Ganga gave an update on the country’s liabilities resulting from the CLICO fiasco during which he noted that a total of 8882 checques amounting to some $6.7B have been processed thus far.

At February 28, 2009, CLICO’s liability to the NIS amounted to $5,482,446,199.00 for thirteen (13) Executive Flexible Premium Annuity (EFPA) Policies with maturity over the period 2009 to 2012.

Subsequent to Resolution 82 of 2009, on September 10, 2010, CLICO was placed into liquidation by the High Court. On November 22, 2011, in keeping with the Government’s decision, the Camp Street CLICO Building was transferred to the NIS at a cost of $600 million, thereby reducing the reconciled amount to $4,882,446,199.00.