Gaining insight into the dynamics of access to finance
WILLEMSTAD, PHILIPSBURG - Little is known about the effectiveness and impact of microcredit loans issued to small and medium enterprises (SMEs) in Curaçao. For that reason, the Centrale Bank van Curaçao en Sint Maarten (CBCS) is conducting a study to deepen the understanding of the microcredit market in Curaçao and assess if and how microcredit loans can be improved as a financial instrument. To this end, on Monday, May 20, 2024, businesses that have obtained a microcredit loan will receive an invitation from their financial institution to participate in an online survey. The survey is anonymous, and all collected data and information will be treated strictly confidential.
Access to finance can pose a challenge for businesses, particularly for SMEs, as a 2023 study by the CBCS on the effect of red tape on business activity in Curaçao has shown. Microcredit is often considered as a financing alternative for those with limited access to credit. These types of loans generally have less stringent requirements than traditional business loans, allowing a wider range of applicants, but are offered at relatively higher interest rates.
The CBCS survey is done in collaboration with several financial institutions in Curaçao and will be offered in four languages, i.e., Papiamentu, Dutch, English, and Spanish. The estimated time to complete the survey is 10 minutes and the respondents’ entries will be anonymous. The outcome of this study will be published in September this year.
The CBCS would like to request the cooperation of all microcredit borrowers to complete the survey before June 3, 2024. It would provide us with insights and experiences that are indispensable in this research and could shape the future of microcredit initiatives in Curaçao.