Published On: Wed, Apr 17th, 2013

No ‘Cyprus’ scenes in Curacao

photoWILLEMSTAD - The likelihood of a 'Cyprus scene' in Curaçao is zero, according to the Central Bank. This is because of a strict separation between the local financial sector and international financial services and because the international orientation of the local Curaçao banks is relatively small.

So Curaçao need not be afraid for Cyprus scenes. Nevertheless there must be strict financial supervision. Especially because the size of the financial sector compared to gross domestic product is relatively large, i.e. 12.5 billion guilders against 5.6 billion guilders. This ratio makes it very difficult for the Government to save failing banks in times of need without major impact on public finances. According to the Central Bank there should be a good deposit guarantee system. The current system does comply. At the present moment all banks in Curaçao are otherwise healthy.

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