WILLEMSTAD – The Board for Financial Supervision (Cft) has advised the government of Curaçao to establish a reserve of 140 million guilders to protect the country against future financial shocks. The recommendation comes amid concerns that the government will not be able to meet its obligations on an outstanding bond loan as previously agreed. 

The Cft also concluded that Curaçao’s 2025 budget does not meet the requirements of the Kingdom Act on Financial Supervision (Rft), primarily because it fails to present a balanced budget. The government has been given until Tuesday to submit a revised proposal. 

“Maintaining a monthly liquidity buffer is essential for financial stability,” the Cft stated. 

In addition to budgetary concerns, the Cft criticized the planned use of future investment revenues, noting that a significant portion is not being directed toward long-term, structural investments. 

The advisory body is urging Curaçao to demonstrate greater fiscal responsibility as the island continues to face mounting financial challenges. The failure to meet debt obligations and build up adequate reserves could have long-term consequences for economic stability and investor confidence.