There is growing uncertainty in St. Maarten about the immediate socioeconomic future that cannot be ignored. The lack of an agreement with the Netherlands on continued COVID-19 liquidity support is creating doom-scenarios for not only businesses and their personnel, but also government and its employees were the money to run out in October as feared.
Unless there is a viable alternative, that stark reality should be weighed against whatever objections – justified or not – exist against conditions for the zero-interest Dutch loans with a grace period. That kind of financing is simply not readily available elsewhere and while floating bonds could provide a short-term fix, new Central Bank of Curaçao and St. Maarten (CBCS) President Richard Doornbosch clearly told Parliament recently that the “needs are too great, and the local capital market does not have enough depth.”
Furthermore, approval of the Committee for Financial Supervision CFT is required and only when the Netherlands declines to subscribe will the bonds go on the open market. How long that process could take and to what extent it would be successful under coronavirus-related crisis circumstances are not known, but according to CBCS this would address the problem for one or maybe two months when it seems obvious help will remain necessary until at least the end of the year.
Curaçao’s new party “Vishon” is ready to accept the strongly-opposed Caribbean Reform Entity (CRE), reasoning that it will be a mostly controlling rather than executing body. In any case, reasoned political leader Miles Mercera, this is a direct consequence of The Hague losing confidence in the island’s politicians who have not been able to give content to its status of autonomous country within the kingdom obtained per 10-10-10. Some of the restructuring measures mentioned have been discussed for a decade, but little tangible action was ever taken, he added.
Prime Minister Eugene Rhuggenaath (PAR) believes the Dutch offer on the table is the best option and Economic Development Minister Steven Martina of coalition partner MAN suggested that if “development” and accompanying investments are given a bigger role, such an entity could work. Even Aruba is still seeking a deal with the Netherlands, despite taking steps to get cash from other sources.
This is no longer just a matter of principles, but of sheer survival for about 300,000 Dutch subjects. Both sides must keep that in mind and make an earnest effort to resolve their differences in a reasonable fashion, with the interest of the people who stand to suffer immensely through no fault of their own in mind.
Everybody involved must understand that it is not about them.
