WILLEMSTAD - The College of Financial Supervision Curaçao and Sint Maarten (Cft) has issued a call for Curaçao to undertake substantial adjustments to its 2024 budget. These changes are deemed necessary to align with the standards outlined in the Kingdom Act on Financial Supervision. Notably, the Cft has outlined a series of recommendations, emphasizing the need for increased liquidity and the resolution of persistent deficits within healthcare and social security sectors.
According to the Cft's assessment, Curaçao must expedite the pace of its financial reforms. This urgency is particularly pertinent regarding the healthcare and social security sectors, where prompt action is imperative to stave off further financial strains. Of pressing concern is also the precarious state of the Curaçao Medical Center (CMC), for which a sustainable resolution remains elusive.
Despite expectations for a response from Curaçao to the Cft's previous recommendations by March 15, the official reply was only received on April 18. Regrettably, the country has only partially implemented the stipulated adjustments. Key areas of apprehension include the financial instability of the CMC and the imperative for more intricate liquidity planning.
The Cft underscores the necessity for a provision within the budget to address the cumulative losses of the CMC effectively. Persisting financial challenges at the CMC continue to exert considerable strain on the national budget, with the government yet to enact concrete measures to mitigate these concerns.
Additionally, there is a call for the formulation of a comprehensive multi-year liquidity plan, crucial for evaluating the necessity of new loans or refinancing existing debts. While Curaçao has tabled proposals for a 71 million guilder loan for 2024 investments and the repayment of a 140 million guilder debt in 2025, detailed plans remain elusive.
With a deadline of May 31 set by the Cft, Curaçao is urged to provide a comprehensive response to the recommendations and submit the initial draft budget amendment (OBW) for 2024. This step is paramount in meeting financial obligations and reducing the debt ratio to a sustainable threshold.