WILLEMSTAD - Curaçao’s public finances showed signs of recovery in the first half of 2025, but progress on key fiscal and administrative reforms remains slow. That is the conclusion of the latest half-year report (January–June 2025) by the College financieel toezicht (Cft) — the financial supervisory board for Curaçao and Sint Maarten — presented to the Dutch State Secretary for Kingdom Relations and Parliament.
Surplus Expected, but Investment Lags Behind
Curaçao’s 2025 budget was adopted on time and forecasts a budget surplus of 62 million Caribbean guilders, equivalent to about 1 percent of GDP. In the first quarter alone, the island recorded a preliminary surplus of 161 million guilders, higher than the 103 million reported in the same period last year.
However, the Cft expressed concern over the low level of investment: during the first quarter, only 1 million guilders was spent, compared to the 204 million guilders budgeted for the full year. Planned projects include road repairs, building renovations, and the acquisition of new Coast Guard equipment. The Cft advised Curaçao to review which projects are realistically achievable this year and to adjust the budget accordingly.
The Board also noted that Curaçao plans to borrow from the Netherlands to finance some of these investments, making it vital to demonstrate solid execution capacity.
Slow Progress in Financial Management Reform
The Cft highlighted persistent weaknesses in Curaçao’s financial administration. Many steps outlined in the government’s Roadmap to Financial Improvement — aimed at securing an unqualified audit opinion and modernizing fiscal management — remain delayed.
Given the country’s limited administrative capacity, the Cft urged the government to prioritize essential reforms first, focusing on accurate, transparent reporting. The Cft did commend Curaçao for improving the quality of its quarterly financial reports, which now provide greater insight into the country’s fiscal position.
Tax Department Under Scrutiny
The Cft reiterated its concerns about the governance problems within Curaçao’s Tax Administration, calling for urgent modernization and professionalization. While tax revenues have been rising since 2021 — largely due to compliance measures introduced by the Ministry of Finance — wage tax revenues remain below expected levels.
The IMF recently noted that, despite economic growth, formal employment has declined in Curaçao — a worrying sign that could undermine long-term tax revenue growth.
During its February visit, the Cft pressed the government to prioritize the reorganization of the Tax Department, noting that a fair, transparent, and efficient tax system is essential for fiscal stability.
Healthcare Funds and CMC Pressure
Curaçao’s healthcare funds (SVB) are projected to show a small surplus of 3 million guilders this year, but only thanks to substantial government contributions totaling 293.5 million guilders. This amount increased by 13 million compared to 2024 — with 10 million earmarked for Curaçao Medical Center’s (CMC) operations and 3 million for staff salary improvements.
The Cft warned that the structural financial issues of the CMC have yet to be resolved and remain a risk to the national budget. The government has promised to present a formal long-term solution later this year.
Refinancing of Dutch Loans
Curaçao also requested Cft advice on the refinancing of a 140-million-guilder bond maturing in October 2025 — one of five loans issued by the Netherlands as part of the 2010 debt relief program.
Because Curaçao lacks sufficient liquidity to repay the full amount while maintaining a financial buffer, the Cft recommended refinancing 80 million through a linear loan and repaying 60 million outright. It also urged Curaçao and the Netherlands’ Ministry of Interior and Kingdom Relations (BZK) to begin early talks on future repayments for the remaining bonds, which mature in 2030, 2035, and 2040.
Outlook: Stability but Caution
Despite positive signs — including improving revenues and tighter fiscal discipline — the Cft stressed that Curaçao’s financial health remains fragile. The government must strengthen its administrative capacity, modernize tax collection, and implement long-term solutions for healthcare and the CMC.
The report concludes that Curaçao’s economy is recovering steadily, but warns that “only consistent reforms and better financial governance will secure sustainable growth and autonomy in the years ahead.”
