Debt claims government increased on BNA balance

July 27, 2008 1:31 PM

In the month of June the combination of the increased debt claims on the government  and the decrease of the obligations to the government (7.8 million guilders) resulted in a deterioration of the net position of the government at the Bank.

During the month of June the debt claims of the Bank of the Netherlands Antilles (BNA) increased by 20.2 million guilders. This increase was on the one hand caused by the advance payment of royalties for the year 2008 to the central government (11 million guilders) and on the other hand by payments to amongst others Apna and the SVB by the central government incurred by the account ‘Gouvernement speciaal’ (9.2 million guilders).

The post ‘liabilities to other inhabitants’ decreased by 22.4 million. This decline is explained through the transfer of assets by Usona for the implementation of development projects. In June there was a balance shortage of 28.9 million guilders. The BNA applied her policy focused on foreshortening the space on the money market by auctioning off more Certificates of Deposit (CD’s). The outstanding amount subsequently increased by 11.8 million.

Growth reserves
The liable reserves grew by 13.6 million guilders through an increase of national liabilities of commercial banks. The liable reserve percentage remained unaltered at 13.25 percent. The basic money amount declined by 26.0 million guilders in June, primarily due to the decline of the current account debts of the commercial banks at the Bank (25.6 million guilders). The commercial banks went into the current account debt for the net purchase of the CD’s, the increase of the liable reserves, and the net purchase of foreign exchange assets at the Bank. The latter resulted in a decline of the post ‘Foreign Exchange Assets’ by 49.8 million guilders on the assets side of the balance.

(Source: National Newspaper Amigoe)

July 23, 2008