WILLEMSTAD - Curaçao and the Netherlands are in talks about long-term refinancing and repayment of liquidity support from the Netherlands. Before October 10, 2023, Curaçao's assets will be reassessed, and a decision will be made.
Initially, the liquidity loans had to be repaid before April 10, 2022. “Curaçao's financial and economic resilience has been lacking for some time now,” the national government writes about the issue in the Assessment Framework for Risk Regulations. “The Covid-19 pandemic has only exacerbated the problems that existed.”
In total, an amount of 911 million guilders has been provided to Curaçao. The refinancing extends the maturity of the loans by merging all the liquidity loans provided. In addition, the end date has been moved to October 10, 2023. Before that date, the island's solvency will be reassessed.
“Given the fragile state of the government finances and the high debts of Curaçao, there is a real risk whether the loans can be repaid at the end date,” the central government said. “We have now opted for a short-term refinancing of eighteen months, because the effects of the pandemic are still significant.”
Although developments are slowly moving in the right direction, the financial support of the islands is still insufficient for interest and repayment obligations, according to the national government. “Talks about long-term refinancing, from October 10, 2023, will therefore be started in good time.”