WILLEMSTAD – The government has written off Cg 44.8 million in expired student loan debt after concluding that decades of inadequate collection practices rendered the amounts legally uncollectable, the Financial Management Report reveals.
An additional Cg 3.0 million in outstanding student loans, largely consisting of accumulated interest, is also set to be forgiven following a joint decision by the ministers of Education and Finance. The decision aims to clean up government accounts and correct past practices, including the charging of interest on interest.
According to the report, the absence of consistent collection efforts led to disproportionate interest accumulation, conflicting with the social objectives of Curaçao’s student financing policy.
The write-offs will be executed through a ministerial decision that was still pending signature at the time of reporting.