Treasury empty as early as November in the absence of Dutch financial support

WILLEMSTAD - In the absence of Dutch liquidity support, the Curaçao government will be confronted with an almost empty treasury as early as next month. The available liquidity is then only 7.2 million guilders. A month later, there will be a serious liquidity shortage. This is according to the most recent forecast from the Ministry of Finance.

This forecast does include the previously received financial support from the Netherlands of 75.5 million and 92.5 million (a total of 168 million) but does not include what additional liquidity has been requested and has yet to be granted for the fourth quarter.

After the last partial tranche, the government is still in the positive numbers this month, October, with +62.9 million in cash. Thereafter, the cash flow will shrink rapidly next month, and the projected liquidity position will be +7.2 million in November.

The last month of the second corona crisis year, December 2021, the Country of Curaçao will close with a provisionally expected liquidity of -131.6 million. That is, again, not counting additional Dutch support.

The Pisas government has indicated that it needs 203 million for the last three months, while the Financial Supervision Board (CFT) would not want to go further than 76 million.

The Curaçao wish list also includes 29 million for investments in roads, which are in poor condition, and 88 million to support the ailing health care through the so-called buffer reserve of the Social Insurance Bank (SVB). At the end of October, the Kingdom Council of Ministers will decide on additional – interest-free – loans to top up the Curaçao government treasury.

The Crime Fund contains 20.8 million, but those liquidities are not included in the country's liquidity position, according to the forecast.

 

The ministry’s forecast shows that there is structurally much more government expenditure than revenue. In November the total expenditure is 214.6 million, compared to only 158.9 million in revenue; in December that is 312 million in expenses versus 173.2 million in revenue.




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