WILLEMSTAD – The Board of Financial Supervision (Cft) is asking Curaçao’s government to explain an XCG 6 million reserve that appeared in its second-quarter financial reporting even though the allocation was not included in the approved 2026 budget.
The amount was recorded under “other expenses” as an addition to a reserve.
According to the Cft, the XCG 6 million allocation was neither included in the original 2026 budget nor adequately explained in the second implementation report.
The lack of information means the financial supervisor cannot determine whether the government’s approach complies with the Kingdom Financial Supervision Act or Curaçao’s own public accounting legislation.
The Cft has therefore asked the government to provide a detailed explanation when it submits its 2026 draft budget amendment.
The issue comes as the Cft is already pressing Curaçao to update its budget to reflect several significant changes that have emerged during the year.
According to the financial tables accompanying the Cft letter, the approved 2026 budget included only XCG 2 million under the category for reserves, while XCG 6 million had already been recorded through the second quarter.
The Cft did not conclude that the reserve is unlawful. Instead, it said the information currently available is insufficient to determine whether the accounting treatment complies with the applicable legal framework.