WILLEMSTAD – The Central Bank of Curaçao and Sint Maarten examined three distinct scenarios for increasing the AOV, each with different implications for economic growth and government finances .
In the first scenario, the monthly AOV benefit would be increased to 1,086 guilders starting in 2026, with future indexation tied to real economic growth. This option delivers the strongest short-term economic stimulus but also places the heaviest burden on the Schommelfonds, causing deficits to emerge as early as 2027.
The second scenario raises the AOV to approximately 1,000 guilders per month and links future adjustments to inflation rather than economic growth. This approach reduces fiscal pressure compared to the first scenario while still partially restoring purchasing power for pensioners.
The third scenario takes a phased approach, increasing the AOV to 970 guilders in 2026 and to 1,033 guilders in 2027, followed by moderate indexation. This option limits immediate strain on public finances while still addressing part of the purchasing power loss experienced by retirees over the past decade.
In all scenarios, the Central Bank notes that restricting increases to pensioners residing in Curaçao and the former Netherlands Antilles territories significantly reduces fiscal risks compared to applying increases globally.
