THE HAGUE, WILLEMSTAD – The Dutch government has decided to partially refinance expiring loans granted to Curaçao and Sint Maarten, easing pressure on the islands’ public finances. As a result, expected revenues in the 2025 budget for Kingdom Relations will decline by millions of euros, according to a revised budget note submitted to the Dutch Parliament on July 2. 

The move concerns two loans originally issued in 2010 as part of the debt relief program associated with the constitutional restructuring of the Kingdom of the Netherlands. Curaçao received XCG 139.7 million (approximately €69.9 million), while Sint Maarten was loaned XCG 73.5 million (around €36.8 million). Combined, the loans represent more than €106 million in repayments that had been projected as incoming revenue for the 2025 fiscal year. 

In a statement, Minister of the Interior and Kingdom Relations Judith Uitermark explained that the decision to refinance was based on advice from the Board of Financial Supervision (Cft). The Cft warned that requiring full repayment would push the liquidity positions of the countries below the threshold recommended by the International Monetary Fund (IMF), potentially endangering the continuity of public services. 

“For Curaçao, partial repayment is feasible,” said Minister Uitermark. “But for Sint Maarten, this is not the case, due to its more fragile financial situation.” She cited lingering effects from the COVID-19 pandemic and ongoing financial burdens linked to the pension insurer Ennia crisis as contributing factors. 

As a result of the refinancing, the estimated revenue for Article 5 of the Kingdom Relations budget—covering debt relief and loan repayments—has been revised downward from €205.3 million to €98.7 million for 2025. The postponed repayments are expected to be rescheduled for future years, though these figures have yet to be reflected in the national budget. 

The Dutch government’s decision is seen as a temporary financial lifeline for the Caribbean countries, allowing them to maintain essential government operations while continuing to recover from prolonged economic challenges.