WILLEMSTAD – The Financial Supervisory Board (Cft) has expressed both cautious approval and significant concern in its official response to Curaçao’s fourth execution report for 2024. While the island reported a preliminary surplus of 142 million Caribbean guilders (XCG), the Cft warns that outstanding financial obligations could reduce the final surplus to just 63 million XCG.
The Cft submitted its analysis in a letter dated April 18, 2025, addressed to Finance Minister Javier Silvania. The oversight body emphasizes that the projected surplus is essential to cover a capital account deficit of 62 million XCG, which could double if all outstanding obligations materialize.
Key Highlights from the Report:
Preliminary Surplus: 142 million XCG (likely revised to 63 million).
Capital Account Deficit: Currently 62 million XCG; may rise to 124 million.
Liquidity Decline: Cash reserves fell from 223 million XCG in 2023 to 162 million XCG by the end of 2024.
National Debt: Decreased to 4.126 billion XCG, representing 65% of GDP.
Despite an improved quality of reporting in this fourth quarterly update, the Cft flagged several critical shortcomings, including:
Failure to submit updated multi-year budgets (OBWs) for 2023 and 2024, undermining parliamentary budgetary authority.
Five-year delay in submitting annual accounts, with the last approved report dating back to 2018.
All 11 projects in the financial management “Roadmap” are delayed or at risk of delay, casting doubt on the country’s ability to meet its 2026 audit goals.
The Cft also called out a lack of transparency in capital expenditures, including an unexplained 13 million XCG in capital contributions and the absence of newly contracted loans despite budgeted borrowing plans.
Moreover, the board criticized the government for not submitting essential data for the collective sector (which includes all public institutions), making it impossible to assess compliance with legally mandated debt service limits.
On a more positive note, Curaçao’s higher-than-expected tax revenues—especially from sales tax, income tax, and import duties—helped boost overall income. Additionally, the government benefited from reduced interest expenses following an agreement on the ENNIA bailout, which lowered the interest rate on refinanced liquidity loans.
Call to Action
The Cft urged Curaçao to:
Update its budget figures in the first execution report of 2025.
Submit overdue reports on public sector finances.
Reactivate progress on financial reform initiatives, including the Roadmap.
Address unresolved issues in tax administration, debt collection, and reporting consistency.
As the island transitions to the new Caribbean guilder (XCG), the Cft’s oversight remains a critical factor in maintaining financial discipline and ensuring that public funds are effectively managed.
The Cft’s detailed feedback and call for stronger governance highlight that while Curaçao is making progress, structural reforms and fiscal prudence are essential for sustainable economic stability.
