WILLEMSTAD, THE HAGUE - The Netherlands is seeking to impose a substantial interest rate of 5.1% on Curaçao, while St. Maarten pays only 3.1% for a similar loan. Minister Charles Cooper posted on his Facebook page that Secretary of State Alexandra van Huffelen can "go take a hike."
The higher interest rate arises from Curaçao's refusal to agree to an Ennia loan of 1.2 billion guilders. Such a loan would provide no financial room for investments in society over the next 20 years.
The Netherlands emphasizes the need for a higher interest rate due to financial considerations and potential risks. Curaçao considers this unfair and unfavorable for the island's future financial health.
The minister stresses that this is in violation of Article 16, Section 7 of the Kingdom Financial Supervision Act (Rft) and questions why the Netherlands is imposing a higher interest rate on Curaçao. The difference in interest rates, between 5.1 percent and 3.1 percent, would have significant financial consequences. On a debt of 911 million guilders, this would mean that Curaçao would have to pay more than 15 million guilders in additional annual interest, equivalent to over 1.3 million guilders per month in interest payments. Cooper indicates that he will go "all the way" against the unreasonable proposal.
The coronavirus loans will be discussed in the Dutch Second Chamber during the Budget Debate on Wednesday and Thursday.