WILLEMSTAD - Curaçao's 2022 financial statement remains unfinished, despite a submission deadline of September 1, 2023, to the General Audit Chamber. According to the September 2024 Financial Management Report (FMR), persistent delays in completing financial statements not only undermine the country's financial transparency but also risk sanctions from the Board of Financial Supervision (Cft).
Longstanding Delays
This issue extends beyond the 2022 financial statement. Curaçao has faced years of delays in preparing its financial reports. The report cites capacity constraints within government administration as a major contributing factor, particularly a lack of qualified staff at the Ministry of Finance to address the backlog.
Mounting Pressure
The delays have far-reaching consequences. The Cft has repeatedly warned that the lack of timely and accurate financial statements undermines Curaçao's credibility as a reliable financial partner. Financial statements are critical tools for assessing the country's actual financial position. Without them, it is difficult for regulators, international partners, and investors to fully understand Curaçao’s budget and debt situation.
A spokesperson for the Ministry of Finance acknowledged the challenges and highlighted ongoing efforts to resolve the delays. “We are working hard on structural improvements, but this is a long-term process,” the minister stated in the report.
Potential Sanctions
The delays also expose Curaçao to potential sanctions from the Cft. These could include withholding financial support from the Netherlands or imposing stricter oversight measures. Such actions would further limit Curaçao’s financial flexibility, particularly during a period of tight budgets and increasing debt levels.
Importance of Timely Reporting
The report underscores the critical role of timely and accurate financial reporting in the country’s economic recovery plan. Without reliable financial statements, both the government and its partners face challenges in making strategic financial decisions. Experts argue that the delays highlight the urgent need for investment in efficient financial structures and administrative systems.
These delays not only hamper Curaçao's economic stability but also jeopardize its ability to maintain trust with local and international stakeholders.