WILLEMSTAD - The Board of Financial Supervision (Cft) has called on Curaçao to adjust the draft budget amendment for 2024. Although Curaçao has followed many recommendations, the budget still does not fully meet the set standards.
In March, the Cft determined that the 2024 budget did not comply with Article 15 of the Kingdom Financial Supervision Act. Therefore, the Cft issued six recommendations to address the deficiencies. On June 14, the Cft received Curaçao’s draft budget, incorporating many of these recommendations. However, there remain crucial issues that need addressing for a healthy financial situation.
Curaçao Medical Center (CMC)
A significant issue remains the Curaçao Medical Center (CMC). While Curaçao is taking serious steps to address the hospital's financial problems, not all measures have been included in the draft budget. The Cft emphasizes that without a provision for the loan to the CMC and additional budgetary measures, the budget remains incomplete. There is a risk that the CMC’s financial problems will impact the national budget more than currently anticipated.
Furthermore, Curaçao must take measures to prevent allocations to the Social Insurance Bank’s (SVB) fluctuation fund. This is important to ensure the financial stability of the social security system. The legislative process for the National Ordinance on Gaming (LOK) must also be completed, and the revenue estimates from licenses must be adjusted.
The Cft urges Curaçao to implement these changes before submitting the draft budget to Parliament. This is essential for a budget that meets standards and provides a reliable picture of the country's financial situation. This will enable Curaçao to work towards a structural surplus of nearly one percent of the gross domestic product, which is necessary for the future.