Curaçao household debt is increasing

WILLEMSTAD - The debts of households in Curaçao are showing an upward trend. For example, Minister of Finance Javier Silvania states in answer to Parliamentary questions. According to research, the increasing debt is due to negative economic growth and an unhealthy borrowing culture.

“The debt problem can be explained on the one hand by the structural loss of income due to years of negative economic growth resulting in an increase in poverty,” explains Silvania. “On the other hand, the debt problem is the result of an unhealthy lending culture, where people spend more than the monthly budget allows.”

 

According to the minister, structural help must be offered to citizens with 'unhealthy borrowing behavior' by means of awareness and behavioral change. The Central Bank of Curaçao and Sint Maarten (CBCS) and the government have a task in both areas. “The consumer must be aware that borrowing costs money and that it can cause problems.” The Central Bank is already trying to create awareness through social media and by providing information.




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