WILLEMSTAD – A key warning in the Central Bank’s AOV report concerns the Schommelfonds, the reserve mechanism that absorbs deficits in social security schemes .
Under most AOV increase scenarios, the fund turns negative within a few years. Once that happens, the government is legally obligated to step in with budgetary transfers. In the most expansive scenario, the Schommelfonds deficit could exceed 450 million guilders by 2030.
While government budgets remain in surplus in several scenarios through 2029, those balances shrink sharply once Schommelfonds compensation is taken into account. In the highest AOV scenario, Curaçao risks breaching fiscal rules that require a balanced ordinary budget.
The Central Bank emphasizes that failing to address these looming deficits would shift the financial burden from the pension system directly onto taxpayers.
