Published On: Thu, Aug 20th, 2015

Curaçao’s financial management still in the development phase

plasterkWILLEMSTAD - The reports of the Committee for Financial Supervision (CFT) clearly show that the financial management of the Dutch islands is still in the development phase. This is according to the Minister of Kingdom Relations, Ronald Plasterk in response to questions from the Dutch MP for the coalition party VVD, Andre Bosman.

Bosman asked these questions after the report of the Curaçao Court of Auditors on the 2013 financial statements was published.

The CFT released in April the latest report on financial management, including a survey on the 2012 financial statements, the budget implementation in 2013 and budget preparation for 2014. These reports will be available after the summer. This inventory was made on behalf of the Curaçao government. Three weeks after the survey is released, it will be made public on the website of the CFT.

Asked whether CFT will involve the reports of, for example, the Court of Auditors in its assessment of loan application, Plasterk wrote that the agreements to improve the financial management do play a role in attracting loans, insofar as these relate to the loan request. “The reports of the Court of Auditors play a role if it relates to this. However, the intention to raise loans is also included in the budget. The budget will be assessed by the CFT using the standards specified in Article 15 of the Financial Supervision Act,” says Plasterk.

Bosman wanted to know how the Minister is assessing the risk for the Netherlands in these loans, such as the new hospital in Otrabanda, now that the Court of Auditors indicated that in 2013 there was a serious failing financial management. According to Plasterk the Financial Supervision Act signed in 2010 concurred with the findings of the International Monetary Fund (IMF) on the debt sustainability of countries like Curaçao and St. Maarten and the maximum indebtedness that those countries can bear before the payment is in jeopardy. In its annual report 2014, the CFT addressed the debt development of Curaçao. It is clear that there are risks in the debt developments.


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