THE HAGUE - Aruba, Curaçao and Sint Maarten do not hope to repay the corona loans to the Netherlands this year. The islands had asked for a postponement but would rather see a remission.
During the corona pandemic in 2020 and 2022, the Netherlands helped the autonomous islands with medical aid and food packages, but also with hundreds of millions in emergency loans.
With that money, for example, both the government and companies that had little income could still pay wages. This is how bankruptcies and unemployment were prevented when tourism fell away due to COVID.
According to the Central Bank of Curaçao and Sint Maarten, the islands are given extra time to repay the loans. Richard Doornbosch, the president of the central bank, warned recently that otherwise problems could arise.
'The Netherlands does not want a remission'
Aruba is still negotiating with the Netherlands about the refinancing of the corona loan. Because the Netherlands does not want a remission, says Aruban Prime Minister Evelyn Wever-Croes: “So we are talking about full repayment, and over what period and at what interest.”
The loan expires on October 10 and Aruba has already indicated that it will not be able to pay the amount in one go. “The Netherlands must provide refinancing, that is stated in the loan conditions.”
The islands actually had until April 10, 2022 to repay the so-called liquidity loans. The Kingdom Council of Ministers acknowledges that the islands, with their economy and finances, have not yet recovered sufficiently to be able to do so. The islands were therefore given an additional 18 months.
The intention is to use that time to make long-term agreements about repayment.
Without a postponement of the repayment, the finances of the government in Curaçao and Sint Maarten will deteriorate considerably. This can also have a negative impact on how the economy will develop further.
According to the president of the central bank, these are 'significant' loans. In the case of Curaçao, this is 22 percent of the gross domestic product (GDP); the total amount that the economy produces each year. For Sint Maarten, this is 11 percent of GDP.
Doornbosch thinks it would be better for the economy of Curacao and Sint Maarten if the debts were canceled.
Interest-free loans via The Hague
Aruba 441.7 million euros / 915.5 million Aruban florins
Curaçao 448.2 million euros / 911 million Antillean guilders
Sint Maarten 141.7 million euros / 292.4 million Antillean guilders
Remission
All three islands have asked several times in the past period to postpone the repayment. The Curaçao finance minister Silvania has also suggested a remission. He is not the only politician who wants that. If the islands show enough progress, there is a chance that the hundreds of millions in loans will be forgiven, Knops said to the House of Representatives in 2020. But not in advance, “because too much has happened for that.” Sint Maarten once again pointed out a remission to the Dutch parliament in February. Member of Parliament Rolando Brison (UPP) wanted to know how much his island gets back from the money the Netherlands earned during slavery.“We have to pay back a debt to the Netherlands for the next eighty years. How can we ever become financially independent?” said Member of Parliament George Pantophlet (National Alliance). “At the moment, Sint Maarten owes 1.4 billion to the Dutch government. I think that is more than slavery.” State Secretary Alexandra van Huffelen, Knops' successor, said in January that she is not thinking of a remission. "No. Not any time soon." In the House of Representatives, the CDA party said it would be more willing to consider a remission if the islands keep their promises about the reforms. In opposition, the Bij1 party is in favor of a remission.