WILLEMSTAD - The prospects of the Social Insurance Bank (SVB) are bleak. The year 2020 ended with a loss of 53.5 million guilders, a significant increase compared to 2019, where the debt was still at 19.1 million guilders. This is evident from the recently presented annual report.
“With the onset of the corona crisis in the first half of 2020 and its continuation into the beginning of 2021, it can only be said that the prospects are very gloomy. The pandemic and the associated lockdown have had far-reaching consequences for the economy and with it a direct effect on premium income. The sharp drop in premium income, if continued, will lead to liquidity problems at the SVB in the short term," said director Philip Martis in the report.
The current situation comes on top of an already declining trend in premium income over recent years, except for the AOV fund (General Old Age Insurance). The SVB notes that it is difficult to provide a forecast regarding premium income. Premium income is strongly dependent on the economic developments of the country.