WILLEMSTAD – The Dutch government has indicated it is willing to explore restructuring options for so-called “10-10-10 loans” held by Curaçao and Sint Maarten, acknowledging that large end-of-term repayment obligations pose financial risks.
According to the cabinet’s response to the Article 5 policy review, several loans issued around the constitutional reform of October 10, 2010, require substantial lump-sum repayments at maturity. International experience with small island economies shows that such repayment structures can threaten liquidity and financial stability.
The cabinet confirmed that refinancing has already been allowed in specific cases, based on advice from the College for Financial Supervision (Cft), to prevent negative economic consequences. It now plans to explore whether a formal hardship clause could be introduced, allowing future restructuring within legal limits.
Under such an approach, bullet loans could be replaced by linear or annuity-based repayment structures to spread financial pressure more evenly over time.