Minister Uitermark: “Governments are responsible for public finances” – StMaartenNews.com – News Views Reviews

PHILIPSBURG — The fall of the Dutch government may have dire consequences for the Caribbean part of the Kingdom, in particular for Curacao and St. Maarten. This is especially true for a decision about the refinancing of loans both countries are unable to repay.

Outgoing Minister Judith Uitermark (NSC), answering question in writing from several parliamentarians after the debate about the budget for kingdom relations, left no doubt about who is responsible for the loans: the governments of Curacao and St. Maarten.

Curacao has to repay loans to the tune of €139.7 million ($159.3 million), while St. Maarten is on the hook for €73.5 million ($83.8 million). Both countries are unable to make these payments and financial supervisor Cft has already indicated that refinancing is the only way out. However, refinancing requires an agreement between the countries and the Netherlands.  Because the Dutch government fell last week it is unclear whether such an agreement can be realized within a reasonable time.

Uitermark said that repayment in full is impossible: “Then both countries would sink below the level advised by the International Monetary Fund. This would endanger public services.”

At the same time, the minister acknowledged that the dire financial situation in both autonomous countries is due “to the aftermath of the corona pandemic and to the problems at pension-insurer Ennia.

Asked why the countries had not made any reservations for the repayment of the loans, Uitermark wrote: “Public finances are the responsibility of the governments of the countries. The parliaments have the budget right and they are able to control public finances.”

It is currently unclear what will happen if there is no agreement about refinancing at the time when the loans are due.

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Related articles:
Cft advises to refinance loans St. Maarten is unable to repay
Expensive loans
The True Cost of Refinancing
Questions arise about St. Maarten’s handling of its Kingdom loans
Dutch government falls, elections probably in October

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