WILLEMSTAD - The Curaçao Business Association (VBC) assumes that the NOW scheme will remain available at least until the end of this year. Many companies on the island are still struggling financially.
VBC director Daniel Hodge points out that the Central Bank of Curaçao and Sint Maarten (CBCS), assuming a NOW arrangement until the end of 2021, predicts an economic growth of 0.1 percent. “Without NOW, that forecast will most likely turn into a contraction,” Hodge said. Because the corona pandemic is far from over, and neither is the economic crisis that it caused.
Hodge cites the entertainment world, nightlife and the hospitality industry as examples of sectors where companies are still struggling financially. "We therefore believe that the NOW scheme should remain until the end of this year."
The VBC was not heard before the adjustments to the support package were implemented. “It's a shame,” said Hodge. Both schemes, the Emergency Measure Bridging for Employment (NOW) wage subsidy and the Temporary Assistance for Self-employed Entrepreneurs (TBZO) affect many sectors in the business community.
Hodge says it is always better if there is broad support for these kinds of decisions. The VBC does not think it is correct that the government has decided to cancel June for applications. Companies have assumed a certain amount of support, but now they receive nothing or less than expected. The association would have preferred to see the changes implemented from July.
“Then, slowly economic activity picked up again,” Hodge says. The last lockdown lasted until sometime in May. That has put a lot of companies at a disadvantage, for example shops in Punda and Otrobanda.”
Recently, the Pisas cabinet announced in a press release that the government will continue with an adapted form of the NOW and the TBZO. The Fixed Charges Allowance (TVL) has been discontinued. The portal for the two grants was reopened after the second part of the sixth tranche of liquidity support from the Netherlands had been received (92.5 million guilders).
Business owners can submit applications for the two subsidies for the months of July, August and September and will receive the awarded amounts this month, the government promises. This includes the outstanding grants awarded for the month of May. As for June, the portal cannot be opened because there are "no more funds available for that month," the government said in a press release last week.
Under the new conditions, an average loss of turnover of at least 25 percent over a period of three months is assumed to be eligible for the NOW subsidy. The wage subsidy has been reduced from a maximum of 100 to 80 percent of the loss of income. The subsidy amount of the TBZO scheme has been reduced from a maximum of 1,335 guilders to 1,000 guilders per month.