WILLEMSTAD – The Board of Financial Supervision (Cft) is urging the government of Curaçao to swiftly provide clarity on the financial future of the Curaçao Medical Center (CMC). While additional funds have been allocated in the 2025 budget to keep the hospital operational, significant financial risks remain for public finances. 

The Cft warns that CMC’s outstanding debt may exceed the value of the hospital building. This means that transferring the property could result in a substantial financial write-off. 

There is also ongoing uncertainty regarding debts to external financiers, who hold rights to the leasehold and shares of the property. Additionally, no budget has been set aside for essential maintenance and investments, which could jeopardize the continuity of healthcare services. 

The Cft urges the government to clearly address these financial implications in the 2025 Intergovernmental Budgetary Agreement (OBW). 

Liquidity Concerns 

Beyond concerns about the hospital, the Cft also questions Curaçao’s liquidity planning. Three proposed scenarios for repaying a maturing bond in 2025 fail to account for necessary investments. Furthermore, the government assumes that the Netherlands will refinance the 140-million-guilder loan, but no agreements have been made yet. 

In terms of tax revenue, the Cft advises revising projections. Expected income from wage taxes is falling short of budget estimates, while social security contributions in 2024 exceeded expectations by 69 million guilders. 

The government also clarified expected revenues from online gambling licenses, which generated 18 million guilders in 2024. With 500 pending applications and new licenses on the way, the Cft considers the 2025 estimate of 30 million guilders achievable. 

Finally, Curaçao must recalculate personnel costs. The current budget overestimates expenses by 19 million guilders. The Cft insists on a correction in the 2025 OBW to ensure accurate financial planning.