WILLEMSTAD - Due to the problems at Girobank, there is a proposal to raise the "license fee" which is now 1 percent of all international transactions.

The license fees are 1 percent of the value of payments from residents to non-residents. This was introduced in 1996 to replace the "foreign exchange tax" of 1.3 percent. The amount is charged by banks to account holders and other customers who use it.

Government transactions and payments for imports and exports from the free zone are exempt.

The government says that there is a proposal that they are still deliberating on. It is part of a sustainable solution for the issues with the Giro Bank, which also includes the introduction of a deposit guarantee scheme. Increasing the license fee is a way to finance this.

The National Decree of 13 December established the Advisory Committee on Financial Markets, Banking and Insurance on the joint nomination of Finance Minister Kenneth Gijsbertha and Prime Minister Rhuggenaath.

There have been for some time now an imminent solution for the Girobank - the exact modalities are not yet known - with an active role for both the General Pension Fund Curaçao (APC) and the Curaçao government.

Reportedly, this solution would, among other things, lead to an increase in the government's financial exposure relative to the Giro Bank, and that the government intends to increase the license fee for commercial banks to cover this. Exact percentages are not known, but there would be talks about 1.7 percent or 1.9 percent.

Financial experts say that a solution for the Giro Bank is indeed urgent, not least for the restoration of confidence in the financial system. Incidentally, such a solution must be sustainable. That is, it should not lead to a shift of the problem to other financial institutions.

Having said all this, there are some reservations about a measure to increase the license fee.