WILLEMSTAD - The international financial services sector of Curaçao has been in the corner for several years, mainly due to external pressure, but last year still generated 185 million guilders.
Much less than tourism, but more than oil refining. This is evident from the annual figures of the Central Bank of Curaçao and Sint Maarten (CBCS).
Financial-economic director José Jardim of the CBCS believes after the "repositioning" in new opportunities for this traditionally important sector in Curaçao.
In the discussion that arose with the Netherlands in connection with the corona crisis and the enormous need for liquidity support, Undersecretary Raymond Knops (CDA) of Kingdom Relations has repeatedly stated that the islands - Curaçao, Aruba and Sint Maarten - are doing well to improve their economies. less dependent on tourism and thus 'more diversified'.
Aruba and Sint Maarten have always been relatively more dependent on tourism (especially from North America), while Curaçao had several sectors. Besides tourism, refining & petroleum, international financial services, free zone, trade (excluding free zone), transport & logistics and bunkering.
International financial services have had a tough time in recent decades, partly due to the tightened international guidelines and rules by the OECD (Organization for Economic Cooperation and Development) and the EU (European Union).
But also Kingdom partner the Netherlands took a strict stance towards Curaçao, while the Netherlands is slowly becoming known as one of the largest "tax havens" in Europe and even in the world.
And recently there were disturbing noises from the Central Bank in Willemstad that the upcoming top of the CBCS, with Richard Doornbosch as new president, "would see no future" in the Curaçao financial services center. This would have been expressed during an introductory meeting, according to other media, but this was not subsequently confirmed.
Traditionally, what was previously known as "the offshore" has been a major part of the local economy, with high wages, high productivity, and high added value (as opposed to tourism, for example, where wages are relatively much lower). Due to all the restrictions that have been repeatedly imposed in recent years, the international financial sector has declined sharply. But much of the "infrastructure", such as trustees, consultancy firms and highly educated persons, is still there. Moreover, Curaçao has recently ensured that it complies with the strict requirements of the EU and OECD. According to Jardim, financial-economic director of the CBCS this should lead to the "desired improvements".
By the turn of the century - when "offshore" was already in decline compared to the 1970s and 1980s - the sector accounted for 18 percent of total foreign exchange income.
That has since shrunk to just 4 percent in 2019. However, as mentioned, the international financial services brought in 185 million guilders last year: 149 million net operating income and 36 million profit tax. In the better years this was about 500 million on an annual basis.
Yet Jardim thus emphasizes the importance of "repositioning" this sector in connection with the "higher added value" it brings to the economy.
