Curaçao’s Financial Challenges and Progress Highlighted in Kingdom Relations Report

THE HAGUE, WILLEMSTAD The Dutch government has published its official response to parliamentary questions about the 2024 Annual Report on Kingdom Relations, revealing key developments and concerns affecting Curaçao, especially in areas of financial management, economic recovery, and public debt. 

One of the most pressing issues raised in the report is Curaçao’s public finances. The Kingdom Council of Ministers and the Financial Supervision Board (Cft) have repeatedly urged Curaçao’s government to address its repayment obligations for a bond of 140 million Antillean guilders due in October 2025. Although Curaçao previously had a strong liquidity position, that buffer has significantly declined in 2025 due to large expenses related to the ENNIA insurance crisis, the troubled Girobank, and financial pressures at the Curaçao Medical Center (CMC). 

As a result, the Cft now considers full repayment of the loan infeasible, recommending partial refinancing. The Cft also confirmed that Curaçao had been aware of the upcoming repayment obligation for years but chose not to allocate sufficient funds for it in the most recent budgets. 

In 2024, Curaçao repaid nearly 68 million guilders in other debts and saw its COVID-19 emergency loans restructured for long-term financing. However, despite these repayments, the island’s overall debt burden remains high, with its debt-to-GDP ratio now around 65%. 

The report also details the continued challenges Curaçao faces in improving its financial administration. Although some progress has been made, including regulatory reforms and improved financial oversight, limited human resources and capacity constraints have slowed many reforms. The Dutch government, through the so-called “landspakket” (country reform package), continues to provide technical and advisory support to assist Curaçao in modernizing its financial systems. 

On the economic front, the Netherlands is working with Curaçao to transform its free zones into more competitive and sustainable economic hubs. A new revolving fund is also being established to provide low-interest loans and support small and medium enterprises (SMEs) in Curaçao, Aruba, and Sint Maarten. This fund is expected to be operational by early 2026. 

Regarding integrity and governance, the Dutch Ministry of the Interior and Kingdom Relations (BZK) emphasized the importance of anti-corruption measures and transparency. Curaçao is currently planning to establish its own integrity bureau, while continuing efforts to strengthen institutional frameworks and accountability mechanisms. 

As part of broader regional cooperation, Curaçao also benefits from shared justice sector support, with dedicated funding to combat organized crime and corruption through agencies like the RST and the Joint Court of Justice. 

With elections behind them, the governments of the Dutch Caribbean are expected to accelerate the pace of reform. However, the report underscores the urgent need for continued cooperation, financial discipline, and structural improvements if Curaçao is to maintain its fiscal stability and unlock long-term economic potential. 

The Dutch parliament will further discuss the status of Kingdom-related dossiers—including Curaçao’s loan refinancing—on June 18, when it meets to determine which files will be marked as “controversial” in light of the recent fall of the Dutch government.




Share