The Dutch Caribbean countries must have balanced budgets in 2023, the Kingdom Council of Ministers confirmed (see related story) by rescinding exemptions granted due to the COVID-19 pandemic. That won’t be easy and in all three cases to a large extent depends on how their respective dominant hospitality industries do.
The current global inflation crisis and supply chain disruptions caused by war in Europe were apparently not considered enough reason to extend suspension of the no-deficit rule longer than planned. However, that option remains open in case of a new calamity.
While the tourism economies of Curaçao, Aruba and St. Maarten are indeed rebounding well, there is growing concern about the liquidity loans that start maturing in October next year and The Hague’s refusal so far to discuss any refinancing. This matter came up again during the recent Inter-Parliamentary Kingdom Consultation IPKO.
Various members of parliament (MPs), including St. Maarten’s George Pantophlet of National Alliance (NA), have repeatedly requested forgiveness of related debts altogether by turning the monetary assistance provided into grants, while others called for more time to settle them. This is something the Netherlands should seriously reconsider to offer the governments in Willemstad, Oranjestad and Philipsburg a bit of breathing space under still-difficult circumstances as they work to get their public finances in order.
These are very uncertain times, when making ends meet is hard enough without having to start repaying loans taken under emergency conditions. It would at least give the islands a fighting chance.
