Coordination economic policy Curaçao and St. Maarten more difficult than expected

January 21, 2011 9:41 AM

The coordination of the economic policy of the two countries Curaçao and St. Maarten appears to be more difficult than expected.

Alberto Romero, financial director of the Central Bank of Curaçao and St. Maarten said this yesterday during the first monthly information lunch of Adeck, the association for small entrepreneurs. St. Maarten finds it difficult to balance the budget for 2011. According to Romero, this could form a threat for the stability of the monetary union between Curaçao and St. Maarten. During his presentation ‘The challenges for the country Curaçao in 2011’, Romero presented an economic prospect for 2011. He also elaborated on the expected risks. Although Curaçao will progress economically, the growth is estimated at a meager 0.6 percent. Romero sees many opportunities for the new country Curaçao. The country will be more attractive for foreign investors now that the government indicated it would decrease the bureaucracy and red tape. The prospect of a lower tax on profits will also make the country more attractive for investors. According to Romero, one should expand the collaborations with companies on the BES-Islands.

Now that Curaçao has an acceptable national debt of 34 percent of the gross national product (bbp), there are more funds available to invest in the infrastructure and social-economic project. For example, he referred to the necessary improvement of the bad roads, and a drainage system for the roads. Romero expects a surplus of fifty million guilders on the budget of Curaçao. The balance of payments of 2011 will also show a surplus even though one expects this will be lower than the one of 2010. However, there are matters that will be less promising. The meager economic progress is reflected in a higher unemployment figure of 10.5 percent – compared to 9.9 percent in 2010. Several decisions have not been taken either. It remains to be seen whether one will introduce the Caribbean guilder or the dollar as the legal tender. The realization of the new administrative organization (nbo) is also still pending. Romero also referred to the lack of policy that is aimed at stimulating the economic growth. Moreover, the tax reformations have not been implemented yet. He advised the government to look across the borders and see what the sister islands are doing to attract investors. According to him, Curaçao must take a competitive position in order to improve the investment climate.

(Source: national Newspaper Amigoe)

21 January 2011