WILLEMSTAD - The governments of Curaçao and the Netherlands have reached political agreement on the third tranche of liquidity support 2020. In this agreement, accords have been reached for a voluntary, but not without obligation, multi-year cooperation between the two countries.
In contrast to reforms on Curaçao, the Dutch cabinet will offer new liquidity support, and will also invest in the development of Curaçao. For example, the Netherlands will primarily support Curaçao with the agreed structural reforms. In addition to continuing budget support for the deficits that have arisen because of the Corona Crisis, this is done with the use of knowledge and expertise. To this end, the Caribbean reform and development body, in short the COHO, is being set up, which will further develop the reforms together with the ministries in Curaçao and in consultation with stakeholders. This entity will also help with its implementation. The COHO will not take over powers from Parliament, the Government and the responsible government bodies; this has been expressly agreed and recorded in the consultations. However, the COHO will be enabled to supervise the implementation of the structural reforms and to attach the consequences to insufficient cooperation.
By reaching this agreement, the Netherlands is also making additional financial resources available; education (in total 30 million euros), strengthening of the rule of law (in total 25.3 million euros), strengthening the entrepreneurship and investment climate, and a set of guarantee instruments (maximum 20 million euros). In particular, strengthening the business and investment climate and improving access to finance are important for the business community and for the economic recovery of Curaçao.
Prime Minister Rhuggenaath: “The situation in Curaçao is challenging, but at the same time offers perspective. We take our responsibility and accept the sacrifices that come with it, but especially focus on the opportunities that are offered to us. Curaçao has enormous social economic potential. It is in our hands to make the most of this potential. However, Curaçao cannot do it alone and on its own, but of course we want to work towards that.”
Undersecretary Knops: “With this package of measures we are working on structural reforms that should make the economy and society of Curaçao more sustainable. In addition to the reforms, there is also room for investment for the island. Curaçao must emerge stronger from this crisis and be able to stand on its own two feet, because the people on Curaçao deserve a social and economic perspective. This political agreement is an important first step in this. This will require continuous effort from all parties in Curaçao.”