WILLEMSTAD – The Curaçao government says it will rely on a combination of social protection, prevention, financial education and programs aimed at greater economic independence as it confronts evidence that more than six in ten family households are struggling to meet their debt obligations.
The government outlined its approach in response to concerns raised by the Advisory Council during its review of the proposed 2027 national budget.
The issue gained urgency following the first results of the Central Bureau of Statistics’ Enkuesta Sosial 2025, which found that more than 60 percent of family households experience difficulties fulfilling their debt obligations.
The Ministry of Social Development, Labor and Welfare (SOAW) acknowledges that the consequences can extend well beyond the finances of individual families.
For people with little or no income, the government says existing social safety-net programs will remain available. These include regular and special social assistance, subsidies for water and electricity, additional support for AOV pensioners and emergency assistance.
At the same time, SOAW wants to reduce long-term dependence on government assistance by helping people become more financially independent. Training, activation programs and work-and-learning programs are among the instruments identified by the government.
The 2027 budget also takes into account the possibility of increased demand for social support, according to the government. Greater emphasis will be placed on prevention, identifying financial problems at an earlier stage, improving the efficiency of services and making better use of available data.
SOAW has also entered into an agreement with the Netherlands-based National Institute for Family Finance Information (Nibud). The cooperation is intended to develop programs focusing on prevention, financial awareness and financial education.
The objective is to intervene before household financial problems become severe enough to create prolonged dependence on social services.
However, the government’s response to the Advisory Council does not identify a separate amount in the 2027 budget specifically earmarked for tackling problematic household debt or providing debt assistance. Instead, it points largely to existing social programs, cooperation within SOAW and preventive measures.
That distinction is significant because the Advisory Council regards household indebtedness as a potential risk to the national budget itself. Increased demand for welfare, healthcare, debt assistance and social housing could translate household financial problems into higher government expenditure.
The issue is therefore expected to raise a broader question during consideration of the 2027 budget in Curaçao Parliament: whether the existing social safety net and planned preventive measures are sufficient when more than 60 percent of family households are already reporting difficulty meeting their debt obligations.