Published On: Thu, Feb 13th, 2014

Jardim: “Government will finance the construction of the new hospital”

Minister Jose JardimWILLEMSTAD – According to the coalition party PAIS, the emission of bonds with a low interest rate for the construction of the new hospital will be more favorable for Curacao. The Minister of Finance, Dr. Jose Jardim proposed to finance the construction with the emission of bonds. The coalition supports the Minister’s proposal for a 100% financing with bonds. The Council of Ministers still has to discuss and make a decision on this proposal.

Other options on the table to finance the construction of the new hospital will costs the Curacao tax payer millions more. Initially, local banks expressed their interest in financing 30% of the needed funds to construct the hospital, but compared to the low interest rate offered by the Netherlands, they cannot offer a more favorable option for Curacao. The local banks did not expect a 100% financing by the government. The Central Bank required them to invest 60% of their capital in the local market. The Government hoped that the local banks could come with a more favorable interest rate, but this was not the case.

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