WILLEMSTAD – The government of Curaçao has officially informed the Dutch State that it is unable to repay a maturing bond loan worth XCG 140 million (approximately 70 million euros) that comes due on October 15, 2025. This is the stark finding in an official advisory issued by the College financieel toezicht (Cft), the kingdom’s financial oversight body for Curaçao and Sint Maarten.
The loan, part of a series of debt packages issued by the Netherlands in 2010 to help stabilize Curaçao after gaining autonomous status within the Kingdom of the Netherlands, is now coming due. In a letter dated April 29, 2025, the Cft confirms that Curaçao does not have sufficient liquid funds to fulfill its debt obligation and recommends a partial refinancing through a new loan.
“Curaçao has insufficient liquid assets to fully repay the XCG 140 million and a partial refinancing is therefore unavoidable,” the Cft stated.
Budget Fails to Meet Oversight Standards
Compounding the situation, the Cft also criticized Curaçao’s 2025 budget, which it says does not meet the standards of the Rijkswet financieel toezicht (Kingdom Financial Supervision Act). Despite being asked to respond by April 1 with a corrective plan, the government has not yet provided the required adjustments, further raising concerns over financial governance.
Liquidity Crisis Looms
According to the Cft’s analysis, Curaçao’s liquidity position has deteriorated significantly. The country had just XCG 213 million in liquidity at the beginning of October 2025. Without refinancing, repayment of the full loan would bring reserves well below the IMF-recommended minimum buffer of XCG 140 million, putting the country at risk of a fiscal shock.
More Debt on the Horizon
Even more troubling is the looming timeline of additional massive debts. Between 2030 and 2040, Curaçao faces three more bullet loans maturing—worth XCG 370 million, XCG 475 million, and XCG 582 million respectively. The government has not made any provisions to repay these debts, which could lead to a deeper financial crisis if left unaddressed.
The Cft is urging both the Curaçao government and the Dutch Ministry of the Interior and Kingdom Relations (BZK) to stop issuing so-called "bullet loans"—loans that must be repaid in full at maturity—and instead move toward linear or annuity repayment structures, which allow for gradual debt reduction.
Cft Calls for Immediate Action
The advisory also includes a call to action: Curaçao should finance all its 2025 investment projects (XCG 204 million) through a new bond issue instead of using its own reserves. This would free up enough funds to at least partially repay the XCG 140 million loan, with a proposed repayment of XCG 60 million.
Conclusion
Curaçao’s inability to repay its maturing debt without new borrowing reflects a deepening fiscal vulnerability, worsened by weak financial planning and unaddressed budget shortfalls. With billions more due in the coming years and no repayment strategy in place, the island's financial stability is in jeopardy. The Cft's recommendation to refinance and restructure future loans is now critical to preventing long-term debt entrapment.
