THE HAGUE, WILLEMSTAD - Undersecretary of Kingdom Relations Raymond Knops believes that the proposal of the new Pisas government to have financial-economic calculations made of the National Package by the International Monetary Fund (IMF) is a good idea.
Structuring the National Package into an adjustment program and the proposal to ask the IMF to draw up, guide and monitor a reform program can also count on the support of the Undersecretary. But he is "not amused" by the suggestion made by the intended Prime Minister Gilmar Pisas in his May 5 letter to Knops that he does not want to participate in the talks about the Caribbean Body for Reform and Development (COHO).
Knops writes about the IMF:
“The importance of the good financial-economic calculations you mentioned has my support and I see opportunities to give further substance to this within the context of the reform entity. The IMF could be a partner in this, for example for carrying out (macroeconomic) calculations.”
He points out that the IMF is already involved in the part of the financial sector and thinks the institute could also be involved in other issues.
Regarding not participating in COHO talks, the Undersecretary first points out that the writing Pisas and Ruthmilda Larmonie-Cecilia, leader of coalition partner PNP, has shown that the pair largely agree with the objectives of the National Package and the advice of the Council of State on the COHO Act. But if they do not want to participate, the Undersecretary states:
“If you do not participate in the discussions about the further COHO report, then, as stated, also the support from the Netherlands to Curaçao will lapse. This means that the liquidity support will be discontinued, as will the non-mandatory part of the one-off investments in educational housing and the economy (29.5 million euros and 20 million euros respectively).”
In addition, from April 2022, the liquidity loans provided must be repaid (as of 7 May 2021: 333.5 million euros) and the outstanding pre-Covid bullet loans must be repaid at the end of the term.
Knops therefore emphasizes the importance of participating in the discussions. He explains once more that the Netherlands and Curaçao have entered into a non-committal cooperation on the basis of which the Netherlands has provided extensive liquidity support.
"This was an optional offer, which Curaçao has agreed to," he emphasizes again. “The agreements made about this are and will remain the starting point for the Netherlands. Participation in the COHO Act is a condition for obtaining support from the Netherlands. From our first introductory meeting on April 1, I have not allowed any misunderstandings about this.”