WILLEMSTAD - Without the possibility of a gift, which former Secretary of State Raymond Knops created the repayment of 911 million guilders keeps Curaçao's national debt with the Netherlands intact. After 25 years at 5.1%, Curaçao will pay a total of 1.6 billion florins, giving the Netherlands 700 million guilders in profit.
The Netherlands is doing business with the CAS islands.
As reported before, Van Huffelen announced that the Netherlands is willing to refinance the COVID debts. These loans, totaling €1.17 billion (2.3 billion guilders), fell due on October 10. If the CAS islands accept the Dutch proposal, they will have the opportunity to distribute the payment over an extended period, contrary to the proposed interest rate, which ultimately turned out to be different for each island. For Curaçao, this would mean that the debt to the Netherlands remains at 3.5 billion guilders. Until the Dutch proposal, Curaçao owed the Netherlands 3.5 billion guilders, including Corona support (911 million). At the time the financing for Ennia was needed, the amount would have increased to 4.2 billion guilders.
Now that the Netherlands has mentioned its willingness to pre-finance the CAS islands (Curaçao, Aruba, St. Maarten), it can be inferred that Curaçao's debt to the Netherlands will remain at 3.5 billion florins. According to the Dutch government website, overheid.nl, which is the official government website of the Netherlands, Alexandra van Huffelen confirmed the Netherlands' "willingness" to finance the Ennia debacle. This was previously rejected.
Despite current discussions involving damages of less than 300 million, the Ennia debacle is estimated to become one of 300 to 500 million florins. Although it is unlikely that the amount will exceed 500 million guilders. The Netherlands has made clear what its conditions for refinancing will be. Apart from the general conditions, there are specific conditions for each country. For Aruba, it applies that they must accept a Kingdom Act, in which financial supervision remains regulated and sustainable. Because there is no government agreement with Aruba regarding a Kingdom Act, Aruba will receive the loan at a higher interest rate (6 - 8%). This is in line with the interest rate that the Netherlands will request from countries with a similar credit. Aruba has not yet presented a refinancing calculation. If Aruba eventually accepts a Kingdom Act, they also qualify for a lower interest rate of about 3.1%. If they can also present a calculation, specific arrangements can be made in the loan plan.
For Curaçao and St. Maarten, a government agreement is required regarding a realistic financial rescue plan for Ennia. Currently, these insurers are in a tremendous capital deficit, risking 30,000 policyholders in Curaçao and St. Maarten. The Netherlands is willing to provide a loan to both countries to enable recovery and provide security to policyholders in Curaçao and St. Maarten. Curaçao rejected the Ennia option and chose a 25-year repayment at 5.1%, which will cost 1.6 billion guilders in liquidity.
The Kingdom Council of Ministers estimated last year that, due to the amount of the loans and taking into account the government's financial recovery, the countries would not be able to fully repay the loans on the final due date. For that reason, the Dutch government decided at the beginning of this year to offer the countries complete refinancing. To qualify for beneficial refinancing and a low-interest rate, the countries must meet several conditions. These conditions are naturally stipulated in the Kingdom packages. Curaçao's total debt to the Netherlands is at 3.5 billion guilders, distributed across various loans, the latest being the 911 million from COVID.