HOW IS THE MONETARY RELATIONSHIP BETWEEN THE NETHERLANDS AND CURACAO?
By: JJosephaNews
Reading Time: 3:30 mins.
Twitter: @JJosephaNews
![HOW IS THE MONETARY RELATIONSHIP BETWEEN THE NETHERLANDS AND CURACAO? By: JJosephaNews Reading Time: 3:30 mins. Twitter: @JJosephaNews Willemstad, Curacao. 26th March, 2022. Before the pandemic, Curacao had experienced major economic shocks. According to the The International Monetary Fund (IMF), "Curacao suffered spillovers from the crisis in Venezuela, leading to a decline of the oil refining sector—a major economic pillar—and contributing to a protracted recession." The IMF predicted that by 2021, Curacao's government debt will have risen from 55 percent of GDP in 2019 to around 100 percent. The country's debt position climbed to 85 percent of its GDP due to budget deficits in 2020 (765 million guilders, or 16.5 percent of GDP) and the transfer of the Girobank debt to the Central Bank (267 million guilders, or 5.8 percent of GDP). The government of Curacao had a budget deficit of more than 16 percent of GDP. There was another loan associated with the Girobank (170 million or 3.5 percent of GDP). The government's debt appears to be at least 100 percent of GDP today. CURACAO DEBT Curacao's government debt climbed by 184 million guilders by the end of 2021. (in the third quarter of 2021). The Netherlands now has a total debt of 4.2 billion guilders, according to the Financial Supervision Board (CFT) (College Financieel Toezicht). The supply of the sixth tranche of financial support by the Netherlands contributed to the growth in debt. Below the 2018-2020 Gross Domestic Product, according to the Central Bureau of Statistics Curacao (CBS): Gross Domestic Product 2018 2019 2020 GDP at market prices, nominal (Mln ANG) 5406.5 5361.4 4468.2 Nominal GDP growth (in%) 0.4 -0.8 -16.7 GDP at market prices, real (Mln ANG) 4914.3 4748.6 3873.0 Real GDP growth (in %) -2.2 -3.4 -18.4 GDP per capita at market prices, nominal (ANG) 3393.2 3405.3 2883.7 Annual growth rate of nominal GDP per capita (%) 0.9 0.4 15.3 GDP per capita at market prices, real (ANG) 3084.2 3016.1 2499.6 Annual growth rate of real GDP per capita (%) -1.7 -2.2 -17.1 Annual growth rate of nominal GDP per employed person (%) 3.8 -2.2 -10.1 Annual growth rate of real GDP per employed person (%) 1.2 -4.7 -12.0 Gross National Income Gross National Income, market prices (Mln ANG) 5449.3 5458.7 4481.1 Gross National Income per capita, market prices (ANG) 34200 34671 28920 Annual growth rate National Income per capita (%) 0.5 1.4 -16.6 During an interview, Curacao lawyer, Mr. Rutsel Martha commented on the debt issue, regarding Curacao paying the Netherlands, among other things Martha said: “Good, in my opinion, we don't need to worry with the one billion debt. Why? Because, it is known that, according to basic law principle, nobody can be required to do something that are impossible and it is known that the Curacao economy, did not grow sufficiently, where it could generate 1 billion in the upcoming months, where we can pay that debt.” Martha continued: “With other words, we would not be able to pay that debt and then, Netherlands will need to accept the reality that we can't pay one billion at once. Then, the only solution that is there is, either Netherlands cancel the debt or Netherlands renegotiate with us for a payment plan. Where it would allow us to pay that debt in quotes.” IF NETHERLANDS DO NOT WANT TO NEGOTIATE, WHAT WILL HAPPEN? Martha continued: “Then it is Netherlands problem! Because, it is known that the money we are generating in our community is for us to guarantee the governance of our country. It can not be, that instead of us governing our country we would take the money and give it to the Netherlands!” Martha showed that he was not worried by stating: “So, for me, it is a not a problem. It is not something I worry about. Because, I don't think it is realistic that, that will become a problem because, simply our economy does not generate that kind of money!” Among other things Martha also said: “With or without COHO, the Curacao governance is the responsibility of the Government and the Parliament. Which means that, with or without COHO, must come with a plan to rescue the country, to govern the country, to make sure we get out of our problems. Which means, it is not so, that we must sit and wait on COHO, for us to govern the country. The responsibility to govern the country is of the government and that must be done immediately!” TRANSLATION: [Felicity: 08% - Fidelity: 92% ] OVERALL TRANSLATION: FELICITY:08% / FIDELITY:92% PAPIAMENTU/DUTCH : ENGLISH Fact Check: We strive for accuracy and fairness. If you should read or see something that doesn't look right, Contact Us! To read more from JJosephaNews: Subscribe to Our YouTube Channel Follow us on Twitter Like us on Facebook Stay tuned for more news @JJosephaNews! #FinancialSupervisionBoard #CFT #CollegeFinancieelToezicht #InternationalMonetaryFund #IMF #GiroBank #CentralBureauofStatisticsCuracao #CBS #RutselMartha #CuracaoEconomy #CentraleBankvanCuracaoenSintMaarten ©2022 JJosephaNews. All rights reserved.](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5ZstqSDbfnIMJoRR8Sz9AgGk9lzIFI7SR6_4KM6q5Wl4NeXAzEXT-SN-bgAoB_hqrnfcz9KNVlkAKQosEJ4FV9KQrNT7mhMM7pUoVP3ImvzU05GsUSt0ChCv4asJ68LELaApPkbCFyEz6gC-N5h1cajO9hQD1lW_VVUU3ZAZf9ixjQDmsubdbTf57Mw/s960/PLAY%20OR%20PAY%20THE%201%20BILLION%20GAME.png "HOW IS THE MONETARY RELATIONSHIP BETWEEN THE NETHERLANDS AND CURACAO? By: JJosephaNews Reading Time: 3:30 mins. Twitter: @JJosephaNews Willemstad, Curacao. 26th March, 2022. Before the pandemic, Curacao had experienced major economic shocks. According to the The International Monetary Fund (IMF), \"Curacao suffered spillovers from the crisis in Venezuela, leading to a decline of the oil refining sector—a major economic pillar—and contributing to a protracted recession.\" The IMF predicted that by 2021, Curacao's government debt will have risen from 55 percent of GDP in 2019 to around 100 percent. The country's debt position climbed to 85 percent of its GDP due to budget deficits in 2020 (765 million guilders, or 16.5 percent of GDP) and the transfer of the Girobank debt to the Central Bank (267 million guilders, or 5.8 percent of GDP). The government of Curacao had a budget deficit of more than 16 percent of GDP. There was another loan associated with the Girobank (170 million or 3.5 percent of GDP). The government's debt appears to be at least 100 percent of GDP today. CURACAO DEBT Curacao's government debt climbed by 184 million guilders by the end of 2021. (in the third quarter of 2021). The Netherlands now has a total debt of 4.2 billion guilders, according to the Financial Supervision Board (CFT) (College Financieel Toezicht). The supply of the sixth tranche of financial support by the Netherlands contributed to the growth in debt. Below the 2018-2020 Gross Domestic Product, according to the Central Bureau of Statistics Curacao (CBS): Gross Domestic Product 2018 2019 2020 GDP at market prices, nominal (Mln ANG) 5406.5 5361.4 4468.2 Nominal GDP growth (in%) 0.4 -0.8 -16.7 GDP at market prices, real (Mln ANG) 4914.3 4748.6 3873.0 Real GDP growth (in %) -2.2 -3.4 -18.4 GDP per capita at market prices, nominal (ANG) 3393.2 3405.3 2883.7 Annual growth rate of nominal GDP per capita (%) 0.9 0.4 15.3 GDP per capita at market prices, real (ANG) 3084.2 3016.1 2499.6 Annual growth rate of real GDP per capita (%) -1.7 -2.2 -17.1 Annual growth rate of nominal GDP per employed person (%) 3.8 -2.2 -10.1 Annual growth rate of real GDP per employed person (%) 1.2 -4.7 -12.0 Gross National Income Gross National Income, market prices (Mln ANG) 5449.3 5458.7 4481.1 Gross National Income per capita, market prices (ANG) 34200 34671 28920 Annual growth rate National Income per capita (%) 0.5 1.4 -16.6 During an interview, Curacao lawyer, Mr. Rutsel Martha commented on the debt issue, regarding Curacao paying the Netherlands, among other things Martha said: “Good, in my opinion, we don't need to worry with the one billion debt. Why? Because, it is known that, according to basic law principle, nobody can be required to do something that are impossible and it is known that the Curacao economy, did not grow sufficiently, where it could generate 1 billion in the upcoming months, where we can pay that debt.” Martha continued: “With other words, we would not be able to pay that debt and then, Netherlands will need to accept the reality that we can't pay one billion at once. Then, the only solution that is there is, either Netherlands cancel the debt or Netherlands renegotiate with us for a payment plan. Where it would allow us to pay that debt in quotes.” IF NETHERLANDS DO NOT WANT TO NEGOTIATE, WHAT WILL HAPPEN? Martha continued: “Then it is Netherlands problem! Because, it is known that the money we are generating in our community is for us to guarantee the governance of our country. It can not be, that instead of us governing our country we would take the money and give it to the Netherlands!” Martha showed that he was not worried by stating: “So, for me, it is a not a problem. It is not something I worry about. Because, I don't think it is realistic that, that will become a problem because, simply our economy does not generate that kind of money!” Among other things Martha also said: “With or without COHO, the Curacao governance is the responsibility of the Government and the Parliament. Which means that, with or without COHO, must come with a plan to rescue the country, to govern the country, to make sure we get out of our problems. Which means, it is not so, that we must sit and wait on COHO, for us to govern the country. The responsibility to govern the country is of the government and that must be done immediately!” TRANSLATION: [Felicity: 08% - Fidelity: 92% ] OVERALL TRANSLATION: FELICITY:08% / FIDELITY:92% PAPIAMENTU/DUTCH : ENGLISH Fact Check: We strive for accuracy and fairness. If you should read or see something that doesn't look right, Contact Us! To read more from JJosephaNews: Subscribe to Our YouTube Channel Follow us on Twitter Like us on Facebook Stay tuned for more news @JJosephaNews! #FinancialSupervisionBoard #CFT #CollegeFinancieelToezicht #InternationalMonetaryFund #IMF #GiroBank #CentralBureauofStatisticsCuracao #CBS #RutselMartha #CuracaoEconomy #CentraleBankvanCuracaoenSintMaarten ©2022 JJosephaNews. All rights reserved.")
Willemstad, Curacao. 26th March, 2022. Before the pandemic, Curacao had experienced major economic shocks. According to the The International Monetary Fund (IMF), "Curacao suffered spillovers from the crisis in Venezuela, leading to a decline of the oil refining sector—a major economic pillar—and contributing to a protracted recession." The IMF predicted that by 2021, Curacao's government debt will have risen from 55 percent of GDP in 2019 to around 100 percent. The country's debt position climbed to 85 percent of its GDP due to budget deficits in 2020 (765 million guilders, or 16.5 percent of GDP) and the transfer of the Girobank debt to the Central Bank (267 million guilders, or 5.8 percent of GDP). The government of Curacao had a budget deficit of more than 16 percent of GDP. There was another loan associated with the Girobank (170 million or 3.5 percent of GDP). The government's debt appears to be at least 100 percent of GDP today.
CURACAO DEBT
Curacao's government debt climbed by 184 million guilders by the end of 2021. (in the third quarter of 2021). The Netherlands now has a total debt of 4.2 billion guilders, according to the Financial Supervision Board (CFT) (College Financieel Toezicht). The supply of the sixth tranche of financial support by the Netherlands contributed to the growth in debt.
Below the 2018-2020 Gross Domestic Product, according to the Central Bureau of Statistics Curacao (CBS):
Gross Domestic Product | 2018 | 2019 | 2020 |
| GDP at market prices, nominal (Mln ANG) | 5406.5 | 5361.4 | 4468.2 |
| Nominal GDP growth (in%) | 0.4 | -0.8 | -16.7 |
| GDP at market prices, real (Mln ANG) | 4914.3 | 4748.6 | 3873.0 |
| Real GDP growth (in %) | -2.2 | -3.4 | -18.4 |
| GDP per capita at market prices, nominal (ANG) | 3393.2 | 3405.3 | 2883.7 |
| Annual growth rate of nominal GDP per capita (%) | 0.9 | 0.4 | 15.3 |
| GDP per capita at market prices, real (ANG) | 3084.2 | 3016.1 | 2499.6 |
| Annual growth rate of real GDP per capita (%) | -1.7 | -2.2 | -17.1 |
| Annual growth rate of nominal GDP per employed person (%) | 3.8 | -2.2 | -10.1 |
| Annual growth rate of real GDP per employed person (%) | 1.2 | -4.7 | -12.0 |
Gross National Income | |||
| Gross National Income, market prices (Mln ANG) | 5449.3 | 5458.7 | 4481.1 |
| Gross National Income per capita, market prices (ANG) | 34200 | 34671 | 28920 |
| Annual growth rate National Income per capita (%) | 0.5 | 1.4 | -16.6 |
During an interview, Curacao lawyer, Mr. Rutsel Martha commented on the debt issue, regarding Curacao paying the Netherlands, among other things Martha said: “Good, in my opinion, we don't need to worry with the one billion debt. Why? Because, it is known that, according to basic law principle, nobody can be required to do something that are impossible and it is known that the Curacao economy, did not grow sufficiently, where it could generate 1 billion in the upcoming months, where we can pay that debt.”
Martha continued: “With other words, we would not be able to pay that debt and then, Netherlands will need to accept the reality that we can't pay one billion at once. Then, the only solution that is there is, either Netherlands cancel the debt or Netherlands renegotiate with us for a payment plan. Where it would allow us to pay that debt in quotes.”
IF NETHERLANDS DO NOT WANT TO NEGOTIATE, WHAT WILL HAPPEN?
Martha continued: “Then it is Netherlands problem! Because, it is known that the money we are generating in our community is for us to guarantee the governance of our country. It can not be, that instead of us governing our country we would take the money and give it to the Netherlands!”
Martha showed that he was not worried by stating: “So, for me, it is a not a problem. It is not something I worry about. Because, I don't think it is realistic that, that will become a problem because, simply our economy does not generate that kind of money!”
Among other things Martha also said: “With or without COHO, the Curacao governance is the responsibility of the Government and the Parliament. Which means that, with or without COHO, must come with a plan to rescue the country, to govern the country, to make sure we get out of our problems. Which means, it is not so, that we must sit and wait on COHO, for us to govern the country. The responsibility to govern the country is of the government and that must be done immediately!”
TRANSLATION: [Felicity: 08% - Fidelity: 92% ]
OVERALL TRANSLATION: FELICITY:08% / FIDELITY:92%
PAPIAMENTU/DUTCH : ENGLISH
Fact Check:
We strive for accuracy and fairness. If you should read or see something that doesn't look right, Contact Us!
To read more from JJosephaNews:
Subscribe to Our YouTube Channel
Follow us on Twitter
Like us on Facebook
Stay tuned for more news @JJosephaNews!
#FinancialSupervisionBoard #CFT #CollegeFinancieelToezicht #InternationalMonetaryFund #IMF #GiroBank #CentralBureauofStatisticsCuracao #CBS #RutselMartha #CuracaoEconomy #CentraleBankvanCuracaoenSintMaarten
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