WILLEMSTAD – The Netherlands intends to continue discussions with Curaçao in 2027 on the future of financial supervision following evaluations of the Kingdom Act on Financial Supervision and Dutch policy on loans and debt restructuring.
The issue appears in the Dutch government’s proposed 2027 Kingdom Relations budget.
The Kingdom Act on Financial Supervision, commonly known by its Dutch abbreviation Rft, has governed financial supervision of Curaçao and Sint Maarten since the constitutional restructuring of October 10, 2010.
Under the system, the College financieel toezicht Curaçao en Sint Maarten advises on the countries’ public finances, while the Dutch Minister of the Interior and Kingdom Relations channels relevant advice to the Kingdom Council of Ministers.
The 2027 budget says Curaçao and Sint Maarten will work on follow-up to both a policy review of the Kingdom Relations budget’s debt and lending provisions and the evaluation carried out under Article 33 of the Rft.
The Dutch government says maintaining sustainable public finances remains a central objective for all countries within the Kingdom.
The issue is particularly important for Curaçao because the Rft also provides access to financing through the Kingdom.
The Dutch government finances costs stemming from Curaçao and Sint Maarten’s debt restructuring and the standing subscription mechanism for capital loans. The original debt restructuring dates back to agreements made before the constitutional changes of October 10, 2010.
According to the budget, part of that debt restructuring continues through 2030. Other loans provided to Curaçao and Sint Maarten will not mature until as late as 2040.
The Netherlands also provided liquidity loans during the COVID-19 pandemic to enable the countries to maintain public services and support residents and businesses.
The new budget does not announce a fundamental change to the Rft for Curaçao in 2027. It does, however, make clear that discussions on the consequences of the evaluations will continue.