Published On: Thu, Mar 13th, 2014

Jardim: “Financing new hospital from the capital market”

Minister Jose JardimWILLEMSTAD – The preparations for the construction of the new hospital in Otrabanda are continuing. Minister of Finance Dr. Jose Jardim announced recently that in the coming weeks the government will start looking for financing on the capital market.

The Minister explained that in April 2013, when 4 of the financial instructions were dismissed, the Committee for Financial Supervision (CFT) indicated that Curacao was able to get loans again. Specifically for the construction of the new hospital, it had to be analyzed if the project is in balance or not. Since the 2014 budget was evaluated, it was concluded that the operations of the new hospital will give enough guarantee to finance this project. Based on this conclusion, the government will go on the capital market for financing.

Investment climate

When a country like Curacao has a financial instruction it means that it is not doing its job. It means that it has a financial policy which is not the right one. When these instructions are dismissed, it means that the country is improving its investment climate. When those financial instructions were imposed on Curacao in 2012, the financial perspective was changed by Standard & Poor (S&P) from stable to negative. In 2013 it was reversed. Four of the instructions were dismissed and S&P changed their rating to stable again.

These are very important aspects to hold into account because it influences the investment climate, this is according to the Minister.

When S&P gives a country a negative perspective or when the country receives a financial instruction, this means that investors will sit and watch what direction the government will go to solve their problems.

The fact that there are no instructions means that the implemented policies were necessary and the right ones to solve the financial problems. “If we see the volume of investments in 2013 compared to the projection of 2014, it is clear that the whole community will be benefitted from the policies implemented by the government,” the Minister said.

“This is all possible because the government has followed three steps: Increase our income, cut down on expenses and stimulate the economy by investing in a social and educational infrastructure, especially in the hospital, which is a big project.”

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