WILLEMSTAD - In a letter to his Dutch counterpart Mark Rutte, the Prime Minister of Curaçao Eugene Rhuggenaath has requested more time balance the budget. This can be done through article 25 of the Financial Supervision Act (Rft).
The official request follows the advice of the Financial Supervision Evaluation Committee 2018 to indicate in an administrative consultation with the Netherlands which facilitation is required to put the government finances in order, according to the Curaçao prime minister.
In his letter, the Prime Minister makes an extensive sketch of the socio-economic situation of Curaçao, in which the crisis in Venezuela and its consequences for Curaçao form the common thread. The socio-economic reality that Curaçao is currently facing and which is mainly caused by external factors, has a direct effect on government finances, Rhuggenaath writes.
During the negotiations on the organization of the financial supervision, Article 25 was included, among other things, against the background of the drastic, negative economic consequences for Curaçao during the economic crisis that took place in Venezuela in the early 1980s, Rhuggenaath writes.
In order to stimulate the economic growth of Curaçao, it is also necessary, according to the prime minister, to borrow at least 60 million extra annually for 'high impact' investments in sustainable projects with a structural effect and in projects that reduce social disadvantage.
At the conclusion of his letter, the Prime Minister, says that he wants to consult with his Dutch counterpart in the very short term about the possibility of borrowing to finance the necessary reforms of the economy identified in the Growth Strategy plan.
“In this consultation I will be able to further explain Curaçao's request to reach an agreement on the path we envisage not only to achieve structurally sound government finances, but also to achieve socio-economic conditions that offer prospects to the Curaçao citizen and especially the young people,” the Curaçao prime minister concludes.
