WILLEMSTAD – Curaçao expects to borrow or otherwise finance XCG 130 million in 2027 despite an improving primary government balance, as capital investments and debt repayments continue to exceed the financing generated through normal government operations.
The 2027 Budget Memorandum projects investments and capital transfers of XCG 181.8 million during the year.
At the same time, Curaçao faces XCG 127 million in repayments on existing loans, while approximately XCG 40.1 million is expected to be received from repayments on loans previously issued by the government.
The resulting financing requirement is estimated at XCG 130 million.
The government expects the same XCG 130 million financing requirement in 2028 and 2029 before a major increase to XCG 500 million in 2030.
Interest expenses are projected at approximately XCG 94.1 million in 2027. The budget assumes an average interest rate of approximately 4 percent for new financing and short-term money-market requirements.
Curaçao begins 2027 with government debt of approximately XCG 3.531 billion. The budget projects debt of approximately XCG 3.567 billion at the end of 2027.
The financing requirement exists despite a sharp improvement in the primary balance. The government expects to move from a XCG 12.8 million primary deficit in 2026 to a XCG 51 million primary surplus in 2027.
That distinction is important: Curaçao’s ordinary and primary financial position is improving, but the country still needs financing for investments, repayments and other capital requirements.