WILLEMSTAD - The Financial Supervision College of Curaçao and Sint Maarten (Cft) has issued recommendations to the Minister of Finance, Javier Silvania, following an assessment of Curaçao's 2024 budget. In a letter dated March 1, 2024, the Cft emphasized the importance of aligning the budget with the standards of the Kingdom Act on Financial Supervision Curaçao and Sint Maarten (Rft).
The Cft advised implementing various changes to the budget and recommended their incorporation into a draft budget amendment (OBW) to be submitted by April 30, 2024. However, the Minister's response was delayed, received by the Cft on April 18, 2024, deviating from the statutory response deadline.
In its assessment, the Cft welcomed the Minister's commitment to focusing on a balanced policy to achieve surpluses, essential for fulfilling legally required deficit compensation. Despite this commitment, the Cft noted that Curaçao only partially addressed the recommended changes, necessitating further adjustments to align with Rft norms.
Of particular concern is the financial situation of the Curaçao Medical Center (CMC), with the Cft highlighting the need for urgent action to address the hospital's losses. Despite multiple studies, an integrated solution has yet to be found, prompting the Cft to urge the establishment of a provision in the OBW 2024 to address the hospital's cumulative loss.
Additionally, the Cft emphasized the absence of a (multi-year) liquidity planning and the lack of determinations and reports on the collective sector of Curaçao. Without this crucial information, the Cft cannot assess the necessity of new loans or ensure compliance with borrowing criteria.
The Minister has been requested to respond by May 31, 2024, and to submit the OBW 2024. This deadline aligns with the Minister's commitment to present decision points regarding the CMC to the Council of Ministers (RvM) of Curaçao by the end of May 2024.
The Cft's recommendations underscore the need for swift and decisive action by the Minister of Finance to address the identified shortcomings in Curaçao's financial management. Failure to act promptly could have significant implications for the island's fiscal stability and economic future.