WILLEMSTAD – Curaçao’s public sector balance sheet continues to show structural vulnerabilities that could limit future financial flexibility, according to the Financial Management Report for the fourth quarter of 2025. While headline figures suggest stability, the underlying composition of assets and liabilities raises concern.
The report highlights long-term obligations that remain sensitive to economic shocks, interest rate developments and demographic trends. At the same time, not all risks are fully reflected in consolidated reporting, meaning that the government’s true exposure may be higher than current figures indicate.
In particular, the balance between fixed assets, reserves and contingent liabilities remains fragile. Limited buffers reduce the government’s capacity to absorb unexpected costs without resorting to additional borrowing or spending cuts.
The report emphasizes that improving balance sheet resilience is essential for maintaining access to financing and preserving fiscal credibility. Without structural strengthening, Curaçao may face constraints on its borrowing capacity in future years.
Although efforts are underway to improve asset management and financial oversight, the FMR concludes that progress has not yet translated into a materially stronger financial position.