WILLEMSTAD - The Board of Financial Supervision for Curaçao and Sint Maarten (Cft) remains critical of Curaçao’s 2025 budget, despite the government's formal response to earlier recommendations. In a letter dated March 25, 2025, the Cft emphasized that crucial budgetary adjustments are still required to align with the standards set by the Kingdom Law on Financial Supervision.
The Cft stated that although Curaçao has partially addressed its earlier recommendations, several issues remain unresolved. One of the most pressing concerns is the ongoing financial risk posed by the Curaçao Medical Center (CMC). While the government has reserved additional funds for the hospital's operations, the Cft insists that a finalized and realistic financial solution for CMC—including future maintenance and investment needs—is urgently needed.
The Board also highlighted that Curaçao no longer intends to borrow for capital investments, but this strategic change has not yet been reflected in the current budget. Additionally, expenditures such as the recent distribution of Bashí bonuses have not been accounted for.
Call for Updated Budget Amendment
The Cft has requested that the government submit a revised budget amendment (Ontwerpbegrotingswijziging - OBW) by May 13, 2025, alongside its first-quarter financial report. This amendment should include updated figures related to:
The financial implications of the new CMC strategy.
Capital investment plans and potential new loans.
Adjusted projections for wage tax revenues and the social insurance reserve fund.
A reduction in the multi-year estimate of personnel costs.
In the letter, the Cft reiterated its concerns about Curaçao's liquidity planning, particularly regarding the repayment of a 140 million guilders loan maturing in 2025. The government provided three repayment scenarios but failed to include capital or replacement investments in any of them. The Cft questioned the realism of these scenarios and has invited further discussion.
CMC Situation Still Unresolved
Despite the government’s partial progress, the Cft warned that transferring ownership of the hospital building from the CMC to the government may result in financial losses if the building’s value does not match the outstanding debt. The Board also noted unresolved issues with an external financing consortium and the hospital’s negative equity position, all of which must be addressed for financial stability.
“The Cft believes that clarity on these matters can no longer be postponed,” the letter stated, adding that these elements must be fully incorporated into the 2025 OBW.
Online Gambling Fees and Personnel Costs
On a more positive note, the Cft acknowledged that Curaçao’s revenue from online gambling licensing is on track. The government issued 272 licenses in 2024, generating ANG 18 million, and expects to meet its 2025 projection of ANG 30 million.
However, the Cft found that personnel costs have been overestimated by approximately ANG 19 million and urged the government to revise this figure in the OBW.