THE HAGUE – A right-leaning majority in the Dutch House of Representatives has rejected a proposal to create a Kingdom Fund that would provide interest-free loans to Aruba, Curaçao, and Sint Maarten for major investments they cannot finance on their own.
The proposal was introduced earlier in the day by MP Mikal Tseggai (GroenLinks–PvdA) but failed to secure sufficient support during the evening vote.
Aim of the Proposal
In his motion, Tseggai argued that while a structurally sound financial position is essential for the Caribbean countries within the Kingdom, their relatively small economies make them particularly vulnerable to shocks such as pandemics or natural disasters. He noted that the islands face significant challenges that require substantial financial investments and stressed the importance of establishing clear agreements within the Kingdom on future financial relations and mutual assistance.
The motion called on the Dutch government to explore, together with Aruba, Curaçao, and Sint Maarten, whether a Kingdom Fund could be established to provide interest-free loans for large-scale investments, and to inform Parliament of the outcomes of that exploration.
Government Opposition
State Secretary for Kingdom Relations Eddie van Marum advised Parliament to vote against the motion. According to Van Marum, borrowing options already exist for the Caribbean countries and such loans must ultimately be repaid.
“Borrowing is already possible,” Van Marum said. “These loans also have to be repaid. Through the Kingdom Act, they already pay the lowest interest rate.”
Tseggai challenged that assessment, pointing to Aruba’s current borrowing conditions. “I understand that Aruba is currently borrowing at an extremely high interest rate,” he said. “Does the State Secretary really consider an interest rate of 16 percent to be so low that no alternative solutions are needed? In the long term, wouldn’t it be better to have a kind of revolving fund within the Kingdom, for major investments or emergency assistance?”
HOFA Legislation Cited
In response, Van Marum referred to ongoing work on the Kingdom Act on Sustainable Public Finances (Rijkswet HOFA). According to the State Secretary, this legislation will provide additional opportunities for the Caribbean countries to borrow at lower interest rates.
Despite the debate, the motion did not receive enough backing, leaving the existing financial framework between the Netherlands and the Caribbean countries unchanged for now.