St. Maarten, the Netherlands reach accord
THE HAGUE--St. Maarten and the Netherlands signed an accord on Tuesday with regard to the conditions for liquidity support, Dutch State Secretary of Home Affairs and Kingdom Relations Raymond Knops announced.
Knops and St. Maarten Prime Minister Silveria Jacobs put their signature under the political agreement in a virtual setting around 10:00am St. Maarten time, 3:00pm Dutch time after several weeks of talks. St. Maarten was the last Dutch Caribbean country to reach an agreement with The Hague. Curaçao and Aruba already signed a deal on November 2 and 13 respectively.
The urgency is high because St. Maarten is in dire needs of liquidity so it can comply with its basic financial obligations. Under this agreement, St. Maarten will immediately receive NAf. 61.2 million (30.6 million euro) in liquidity support for the third tranche, covering the period July 1 until December 31. The agreement will also pave the way for future tranches.
The agreement further secured a refinancing of the NAf. 50 million loan for 15 years. The extension of the repayment of this loan averted a default from the side of the St. Maarten government. The Netherlands is further making 30 million euro available for the construction of a new prison and improvements to existing detention facilities.
In the accord, the two countries made agreements for a “voluntary, but not free of obligations multi-annual cooperation,” it was stated in a Dutch government press release shortly after the signing.
In return for structural reforms in St. Maarten, the Dutch government will not only offer new liquidity support, but also invest in several areas of the island’s development. Through the Caribbean Development and Reform Entity COHO, the Netherlands will offer expertise and know-how.
Together with the St. Maarten ministries, the COHO will work out the details of the reforms and assist in the implementation of these measures in consultation with the stakeholders. The COHO will not take over the authorities of the St. Maarten Parliament, government and responsible government entities. This aspect has been explicitly stated in the agreement. The COHO will be able to supervise the execution of the structural reforms and implement consequences in case of insufficient cooperation.
“After Curaçao and Aruba, we now have a political accord with St. Maarten. With this accord, we will work on the necessary structural reforms which should make St. Maarten’s economy and community more resilient in a sustainable manner. Aside from reforms, there is also room for investments,” said State Secretary Knops.
“Having achieved this political agreement is an important step. However, this does not mean that the trajectory has been completed. The reforms included in the country package must be executed. Only then prosperity can be achieved for the St. Maarten people. This will require a continuous commitment of everyone carrying responsibility in St. Maarten,” he stated.
