WILLEMSTAD - The total outstanding public debt of Curaçao reached NAf.2.853 billion at the end of March 2020, a drop of NAf.47.8 million compared to the end of December 2019. The lower debt was caused by declines in both the domestic and foreign debt components by NAf.29.1 million and NAf.18.7 million, respectively. The domestic debt dropped because the government paid part of its short-term arrears towards its creditors, such as utility company Aqualectra.
However, the government’s arrears towards the public pension fund, APC, increased by NAf.7.8 million, mitigating the drop in domestic debt. Furthermore, the drop in the foreign debt can be explained by the payment of part of the arrears to the Dutch government related to the coast guard and a NAf.8.2 million amortization of a sinking bond issued in January 2015 for the financing of the new hospital.
Due to the effects of COVID-19 on the economy, Curaçao’s GDP is projected to decline in 2020. Based on estimates of the CBCS, the debt-to-GDP ratio rose from 52.2% at the end of December 2019 to 53.8% at the end of March 2020.
