Now that the Central Bank has received 50.2 million Antillean guilders in liquidity support on its behalf, the local government is to begin executing its St. Maarten Support Relief Plan (SSRP). This already expected amount from 2019 is not directly related to the proposed coronavirus-related stimulus package with a three-month price tag of NAf 254 million.
The Kingdom Council of Ministers did not make any firm commitments towards the latter on Thursday, except that it “will be looked at.” Nevertheless, Finance Minister Ardwell Irion had earlier clearly stated they would start with the money now coming in because the need is pressing and great.
In addition to NAf 89.2 million to shore up public finances and NAf 56.28 million for extra medical expenses due to the COVID-19 crisis, NAf 108.44 million was earmarked for assistance to the private sector, among other things through a payroll subsidy in case of 20 per cent or more revenue decline, just like in the Netherlands. That is of the utmost importance to prevent mass layoffs and widespread loss of all income that would spiral the country into a sudden deep socioeconomic plunge with dire consequences.
The programme is for three months, which comes down to about NAf 35 million per month. This should be used so workers get at least 80 per cent of their salary at the end of April to pay their immediate bills and survive, leaving NAf 15 million for other purposes.
In such a scenario, even if the requested extra help does not come or only partially, businesses will get some breathing space as they hopefully reopen. It won’t be near enough mind you, with tourism not expected to significantly resume until the second half of the year.
There can be little doubt that more assistance will be required, and the island is headed for some tough times regardless. For now, the current unprecedented situation will have to be addressed one step at a time.
