As Curaçao’s debt-to-GDP ratio declines, this does not mean the country is actually reducing its debt. And financial support from the Netherlands is no guarantee for the future.
At the end of June 2026, the Curaçao government’s debt stood at approximately XCG 4.1 billion, equivalent to 57 percent of our Gross Domestic Product (GDP). According to the Board of Financial Supervision (Cft), the debt ratio has declined. That is a positive development, but it is no reason to assume that everything is fine.
The debt ratio can fall because the economy is growing without the government actually paying down its debt. Economic growth is not the same as debt repayment. Refinancing also does not mean that the debt itself has become smaller.
That leads to the central question: How will Curaçao repay billions of guilders in debt, and can we continue counting on the Netherlands?
The Netherlands Knows Our Financial Risks
According to the Dutch 2027 budget, as of August 1, 2026, approximately €1.44 billion in loans extended by the Netherlands to Curaçao was still outstanding. This makes the Netherlands our largest creditor.
On October 6, a local Papiamento newspaper published an article about a Dutch risk assessment dating from 2021. In that assessment, the Netherlands already took into account the possibility that Curaçao might not be able to fully repay all of its COVID-19 loans.
That assessment was made during the pandemic and does not necessarily reflect Curaçao’s current situation. But the warning behind it remains important: financial assistance without structurally strengthening our ability to repay debt does not solve our debt problem.
The Netherlands helped Curaçao during difficult periods. That solidarity deserves recognition. But financial assistance still creates a repayment obligation unless there is an agreement to forgive the debt.
The 2030 Bill
In 2030, a XCG 370 million bond will mature. Another XCG 475 million will follow in 2035, followed by XCG 582 million in 2040. Together, these obligations amount to more than XCG 1.4 billion.
According to the Cft, the government is working on the assumption that the Netherlands will fully refinance the 2030 loan, even though no concrete agreement has yet been reached.
That is a financially vulnerable starting point.
In 2025, Curaçao was unable to repay a XCG 140 million loan in full. The Netherlands refinanced XCG 80 million, while Curaçao repaid XCG 60 million itself.
This demonstrates that the Netherlands is willing to look for financial solutions. But it does not guarantee future refinancing.
A government that assumes refinancing without having an agreement in place is basing its financial planning on the willingness of another country.
What Happens if Another Major Crisis Hits Tomorrow?
A recent study by consultancy firm Crisisplan, which was reported on by a local Dutch newspaper, identified serious weaknesses in Curaçao’s crisis preparedness.
If fuel, electricity or drinking water supplies are disrupted for an extended period, essential services could quickly run into difficulties. Our capacity to provide emergency shelter and respond to major disasters is also insufficient.
This is not only a security issue. It is also an economic and financial risk.
What happens if tourism and commerce come to a standstill, tax revenues fall and, at the same time, millions of guilders are suddenly needed for emergency assistance and reconstruction?
Our interest payments and debt obligations do not disappear because of a crisis.
That is why debt sustainability should not be assessed solely on the basis of normal economic growth. It should also be measured against our ability to withstand unexpected financial shocks.
A country without adequate financial reserves is not only vulnerable during a crisis; it is also vulnerable in its relationship with its creditors.
Will The Hague Continue to Help?
The Dutch 2027 budget once again provides financing for investments in Curaçao. That is concrete evidence that the Netherlands continues to participate in financial cooperation.
But cooperation is not a blank check.
There are different political views in The Hague about financial support for the Caribbean parts of the Kingdom. Those differences surfaced again during the October 7 budget debate, although that discussion did not directly concern Curaçao’s national debt.
What matters for Curaçao is that future financing decisions will depend on agreements, financial circumstances and political decisions.
What happens if the Netherlands is willing to refinance only part of the 2030 loan? What happens if additional conditions are imposed or interest rates rise?
The government should have answers to these questions before those situations arise.
Financial Autonomy Requires Responsibility
Curaçao is an autonomous country within the Kingdom of the Netherlands. The Netherlands can expect budgetary discipline and responsible debt management. In return, Curaçao should be able to expect reliable cooperation and clear agreements.
But autonomy also means accepting responsibility for the obligations we have taken on ourselves.
The government should therefore present a public multi-year debt and risk management plan containing concrete repayment schedules, financing arrangements, available reserves and different crisis scenarios.
Parliament must be able to determine how much fiscal space actually remains for healthcare, education, public safety and infrastructure.
A budget surplus on paper does not automatically mean that enough money is available to repay debt.
Responsible borrowing can support economic development. But when new loans are used primarily to push existing obligations further into the future, we increase our financial dependence.
The Netherlands can remain our partner, but the Netherlands should not become our permanent debt repayment plan.
The government should therefore explain not only how much Curaçao owes today, but, more importantly, how we intend to meet our obligations tomorrow—even if the Netherlands is unwilling or unable to continue helping us.
Ultimately, it is the people of Curaçao who bear the consequences of financial decisions.
True financial autonomy does not begin with how much we can borrow. It begins with our ability to carry our own debt and repay it.
drs. Luigi A. Faneyte MSc. CFE CICA CCS
Staff Member, PAR Parliamentary Group in the Curaçao Parliament