WILLEMSTAD – Curaçao’s plans to borrow XCG 186 million from the Netherlands for investments face an important financial-supervision issue because information needed to formally test the country’s interest burden remains incomplete, according to the Board of Financial Supervision (Cft).
The Cft says it has received no additional information since the first implementation report concerning the formal determination and final reporting of Curaçao’s collective sector.
Those reports are necessary for the Cft to formally assess compliance with the interest burden standard.
The financial supervisor described the information as particularly important if Curaçao intends to contract new loans to finance capital investments.
Curaçao’s 2026 budget provides for XCG 199 million in investments. Of that amount, XCG 186 million is intended to be financed through a new loan from the Netherlands.
Through the end of June, however, actual investment expenditure amounted to XCG 32 million.
The government had also entered into XCG 47 million in investment commitments by the end of June, but the Cft said these commitments were not specified in the implementation report.
No new borrowing had been recorded through the second quarter.
The capital budget showed an XCG 18 million deficit through June. Curaçao had XCG 39 million in capital receipts against XCG 57 million in expenditures. The government had also repaid XCG 25 million in existing loans during the period.
The Cft did not state that the planned Dutch loan cannot proceed. Its warning is that the missing collective-sector information prevents formal testing of the interest burden standard, which is an essential consideration when Curaçao seeks additional borrowing.