WILLEMSTAD - Although Finance Minister Javier Silvania has not yet provided an exact date for the implementation of a deposit guarantee scheme, he expects it to take place in the first half of 2025. Silvania provided this update in response to questions from independent Parliament member Zita Jesus-Leito.
In his response, the minister informed Parliament about the progress regarding the deposit guarantee system (DGS) and plans for a financial stability fund.
A deposit guarantee system is a scheme that protects savers against losing their money if a bank goes bankrupt. The system ensures that savers can recover up to a certain amount of their deposits, even if the bank faces financial difficulties and is unable to meet its obligations.
The purpose of such a system is to maintain confidence in the banking system by ensuring that people do not lose all their savings in the event of a bank failure. The deposit guarantee scheme typically applies to individuals and sometimes to small businesses.
The draft legislation has recently been revised based on advice from the Social and Economic Council (SER) and is now under review by the Legislation and Legal Affairs (Wjz) department.
"On July 29, Wjz submitted its advice on the revised bill to my ministry," stated the minister. "In the coming weeks, we will discuss this advice with the Central Bank and make the necessary adjustments. Our goal is to present the bill to the Council of Advice by October at the latest."
The stability fund is designed to protect institutions that fall outside the scope of the deposit guarantee scheme, such as pension funds. The fund will contribute to the country's financial stability in the future and prevent institutions from facing difficulties without a safety net.