IMF warns: The cuts that the Netherlands wants to impose on Curacao are counterproductive

WILLEMSTAD - The austerity measures that Undersecretary of Kingdom Relations Raymond Knops threatens to impose on the government of Curacao are counterproductive.

This can be deduced from a report published by the IMF last week. This warns that following the advice of the Financial Supervision Council (Cft) will cause major damage to the economy of Curacao and, as a result, the intended goal - restoration of public finances - will be further out of reach.

In other words: the approach advocated by the Cft only pushes Curacao deeper into the swamp. The IMF supports the Rhuggenaath Cabinet's plea that more time is needed to reduce deficits and compensate for losses in order not to cut the economy. "Consistency is more important than speed," says the IMF.

For the time being it does not look like Knops is taking the IMF warning seriously. He directs that the Council of Ministers dominated by Dutch ministers decide on Friday that Curacao is urgently required to implement draconian austerity measures.

Earlier, the Court of Audit called on Knops to look critically at the Financial Supervision Act, which, moreover, leaves Cft operating in a rigid way to allow for circumstances outside the sphere of influence of countries. According to the IMF, the impact of the Venezuela crisis is such a circumstance.




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