WILLEMSTAD - Minister Charles Cooper, a member of the government-Pisas consisting of the MFK and PNP parties, strongly advocates for using the monetary union's (gold) reserves held by the Central Bank (CBCS) to fund large-scale government expenditures, such as infrastructure development for roads.
In a recent interview with Telenotisia, Cooper strongly criticized CBCS President Richard Doornbosch, indicating that if the top executive of the Central Bank does not cooperate, he can expect to receive an "instruction" from the government.
Minister Cooper
The question arises: how is it possible for CBCS to hold reserves of over one billion guilders, while according to Cooper, in accordance with the Central Bank Charter, the maximum should be only 35 million guilders? This past weekend, a video clip containing Cooper's statement circulated on WhatsApp.
This sparked an immediate shock reaction among some individuals. Firstly, the tone taken by the Pisas Cabinet towards the highest official of the independent institution, the Central Bank, is raising concerns since neither the Board of Directors nor the Supervisory Board should seek or accept instructions.
Moreover, Cooper's persistent advocacy for tapping into the gold reserves, as if they serve no other purpose, is causing significant apprehension. However, the gold on the CBCS balance sheet plays a crucial monetary role. "Critics will rightly argue that tampering with gold or even discussing gold sales severely undermines public confidence in our currency."
On another note, circumstances can change, as two years ago, the then opposition Member of Parliament, who was also the designated government official for the yet-to-be-formed MFK/PNP coalition, sought to know the government's plans to prevent the CBCS from "misusing its independence and selling our gold reserves without first consulting the government."
Now, Cooper, the current Minister of Traffic, Transport, and Spatial Planning (VVRP), portrays the use of reserves as a smooth process for the benefit of major government projects. He emphasizes the distinction between consumptive and productive expenditures, stating that there will be no additional funds for welfare recipients but underscoring the importance of investing in the road network and public infrastructure in general.
To achieve this, approximately 400 million will be required in the coming years. By utilizing the reserves at the CBCS, the government aims to avoid taking on new loans from the Netherlands, thereby preventing an increase in debt and dependency on The Hague. "Or does Doornbosch want us to beg for it in the Netherlands?"
If obtaining financing from local banks and pension funds proves unsuccessful – with motor vehicle taxes serving as collateral and repayment spread over a twenty to thirty-year period – the assistance of the CBCS president will be necessary, given the presence of "exorbitant reserves." "If not, Doornbosch should step aside, and someone from Curaçao who understands should take his place."
However, there are concerns both from external sources and reportedly within the coalition. Utilizing the gold reserves - selling the metaphorical "family silver" - is considered risky by experts, as gold represents a "stabilizing factor" for the guilder and serves as a foundation for confidence in Curaçao and Sint Maarten.