Published On: Wed, Nov 26th, 2014

Financial position of the government on the mend

Jose JardimWILLEMSTAD – The equity and liquidity position of the country is on the mend, and contrary to what the opposition party MFK claims in parliament, it is not true that the current government has led the country back into debt. This is according to the Minister of Finance, Dr. Jose Jardim.

Curacao had, in late 2010, an equity capital of 595 million guilders. The end of 2012 it amounted to only 350 million. By taking action in 2013, such as the introduction of the sales tax differentiation and the introduction of the basic health insurance (BVZ), the situation is again on the mend. End of this year, the equity will be 462 million.

Next year there will be, through a reduction in income and profit taxes, a relief, said the minister. Also, there is a positive development in the liquidity position. This was in September this year, 284 million guilders. The end of 2012 it was only 186 million, 250 million less compared to the balance of the end of 2010, which was 437 million.

After two years of the Schotte-cabinet, the AOV pension reserve has been severely drained. This is the reason why the retirement age was raised from 60 to 65 years. Nevertheless, the fund remains in a precarious situation, in part because a relatively large number of people choose to retire earlier and take a 30 percent reduction on their retirement.

On the bonds issued by this government, Jardim said that by 2018, the government will have outstanding 2.9 billion in bonds, but it will have a new hospital, a better road network, refurbished schools, community centers and sports facilities and nursing homes for the care of the elderly.

“This in contrast with the situation in which our reserves were used up without us getting anything in return,” Jardim said. In addition, the minister said that it was Schotte’s intention to borrow on the financial market. However, this was blocked by the financial instruction of the Kingdom Council of Ministers in The Hague.

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