PHILIPSBURG:---  Five inmates have been arrested as suspects in the ongoing investigation into the fire that broke out at Pointe Blanche Prison on May 14, 2025.

The five individuals were questioned on Wednesday, June 25, 2025, at the Philipsburg Police Station in connection with the incident. Following their hearing, the suspects were returned to Pointe Blanche Prison to continue serving their existing sentences while the fire investigation continues.

The fire occurred during a disturbance in the prison, where inmates refused to return to their cells. Emergency services—including the police, fire department, and military support—were deployed to contain the situation. The fire was brought under control the same evening, and no fatalities were reported.

Following the incident, some inmates were relocated temporarily to ensure safety, and assessments of the facility began almost immediately. The Ministry of Justice has since confirmed efforts to repair damages and restore normal operations at the prison.

The investigation is being led by the police under the direction of the Prosecutor’s Office. The authorities continue to assess evidence and conduct interviews to determine who is criminally responsible for the fire.

The Prosecutor’s Office emphasized that the suspects will remain in custody, and no further details will be disclosed at this time to avoid interfering with the investigation.

THE NETHERLANDS (THE HAGUE):--- Recently, Minister Plenipotentiary Drs. Gracita R. Arrindell welcomed Dr. Ann Derwin, the Irish Ambassador to the Netherlands.

Derwin is the 15th Ambassador to the Netherlands, at a time when more than 50 percent of Irish diplomatic missions around the world are led by women.

Ambassador Derwin extended a visit to Minister Plenipotentiary, Drs. Gracita R. Arrindell, and during her visit the Ambassador highlighted the warm and dynamic relationship between Ireland and Sint Maarten. This sentiment was echoed in her conversation with Minister Arrindell.

The meeting focused on potential areas for collaboration in the future, particularly in the fields of food security, educational exchange, and tourism market access.

The agri-food sector is Ireland’s oldest and largest indigenous exporting sector. In 2020, the sector accounted for over 6% of GNI (Gross National Income) and 9% of exports in terms of value. The sector accounts for 38% of total indigenous exports and over 60% of indigenous manufactured exports. The sector employed 163,600 people or 7.1% of total employment in 2020; outside of Dublin and the mid-east region, the sector provides between 10% and 14% of employment.

There are 137,500 farms producing over €8.2 billion in output, and over 2,000 fishing vessels and aquaculture sites producing fish with a value of €700 million. In Ireland, agri-food is an integral part of the economy and society, and especially so for the rural and coastal communities.

Opportunities were explored to expand student exchange initiatives, such as those available through the European Union (EU) Erasmus Programme.

In addition, the Ambassador highlighted Ireland’s vast expertise in the cultivation of potatoes and the embassy’s willingness to explore opportunities for knowledge exchange on this subject.

Ireland and the Netherlands have enjoyed diplomatic ties since 1945, and the embassy was opened in The Hague in 1950 when Josephine McNeill – the first female diplomat to represent Ireland abroad in a Ministerial capacity – presented her credentials to Her Majesty Queen Juliana.

~To sustain growth and build resilience~

Willemstad / Phillipsburg – Following their full recovery from the COVID-19 pandemic, Curaçao and Sint Maarten remain on a positive growth trajectory over the medium term. According to the Centrale Bank van Curaçao en Sint Maarten (CBCS) president Richard Doornbosch in the June 2025 Economic bulletin, growth is driven by major investments, particularly in tourism-related sectors. “To ensure growth is sustainable, additional policy measures are needed, particularly in labor market reform, public finance, and economic resilience”. Both countries must accelerate structural reforms to prepare for ongoing global uncertainties and the increasing risks posed by climate change.

Labor market reforms are needed to unlock growth.

A key area of attention in both Curaçao and Sint Maarten is the labor market. Both countries would benefit from greater investments in human capital, not only in formal education but also via adult training programs and on-the-job learning. “By strengthening human capital, the mismatch between labor market demand and supply can be reduced, allowing more people to benefit from economic growth through greater employment opportunities”, Doornbosch explained. As small economies, Curaçao and Sint Maarten face limitations in developing and retaining specialized skills. This makes the role of foreign labor in certain sectors critical. “The current procedures for attracting foreign workers are often cumbersome and time-consuming, which negatively affects the business climate by fostering illegal employment and growth of the informal sector, undermining the tax base and social security systems”, Doornbosch noted. Reforming work permit procedures, especially in areas where specific skills and expertise are lacking, is therefore crucial. “The recently announced removal of the moratorium of work permits for foreign workers in specific sectors facing urgent labor shortages, specifically the construction and hospitality sector in Curacao, is a step in the right direction”, said Doornbosch.

Fiscal sustainability through responsible refinancing and structural reform

Doornbosch also emphasized the critical role of fiscal sustainability in supporting medium-term growth. In particular, he highlighted the urgency of refinancing the bullet loans that Curaçao and Sint Maarten received from the Dutch State, which are set to mature in October 2025. “Given the current fiscal constraints in both countries, full repayment of these loans is not feasible, making it necessary to negotiate refinancing terms”, Doornbosch stated. However, refinancing conditions must be carefully designed. Simply rolling over debt without a clear and sustainable repayment plan risks increasing the debt burden and placing undue strain on future generations. Moreover, stricter refinancing conditions could raise borrowing costs and limit the government’s capacity to build fiscal buffers needed to absorb future shocks”, he cautioned.

In addition, Doornbosch urged policymakers to address long-term structural challenges that threaten public finances, most notably demographic changes such as an aging population. These dynamics place increasing pressure on healthcare and social insurance systems, which could lead to unsustainable fiscal burdens if left unaddressed. “Comprehensive reforms in these areas will be essential. Given the complexity and sensitivity of such reforms, active engagement from key stakeholders is critical to developing and implementing effective, equitable, and sustainable solutions”, he concluded.

Global headwinds and trade vulnerabilities

Due to their small size and trade openness, Curaçao and Sint Maarten are highly vulnerable to external shocks. Recently, global volatility has increased amid heightened trade and geopolitical tensions. Though not major global players, both countries depend heavily on imports from and are routed through the United States. This also includes goods manufactured elsewhere and distributed via U.S. wholesalers, often through the Port of Miami. Therefore, increased U.S. tariffs and port fees, as recently announced for Chinese-built vessels, would increase import costs for both countries, leading to higher inflation and reduced consumer purchasing power. To mitigate these vulnerabilities, the CBCS’ president recommends diversifying supply chains and trade routes. “By expanding supplier networks to include Latin American countries, CARICOM, and the broader Caribbean region, Curaçao and Sint Maarten can build more resilient supply chains capable of withstanding external shocks,” Doornbosch explained.

Energy and climate resilience

Climate change poses a growing and serious threat to both islands, given their geographic vulnerability to hurricanes, sea-level rise, and flooding. While awareness of climate-related risks has grown in recent years, Doornbosch stressed the need for concrete action. “The next step is to translate that awareness into concrete actions through clear policy measures and an overarching strategy that is not only well-developed on paper but also effectively executed and monitored,” he said. He noted that National Adaptation Plans (NAPs) offer an opportunity to connect existing efforts, set clear priorities, and ensure long-term coordination. Notable initiatives include Curaçao’s Routekaart Klimaatstrategie Kòrsou na kaminda, and KlimaKorsou climate atlas, and in Sint Maarten, the Nature Policy Plan Sint Maarten 2021-2025 and the Coastal Resilience Needs Assessment (CORENA). “These represent important components of future NAPs,” said Doornbosch. “The critical next step is operationalizing them by establishing clear and actionable measures, implementation timelines and monitoring frameworks. In doing so, Curaçao and Sint Maarten can benefit from lessons learned within the broader Caribbean region and draw from partnerships within the Dutch Kingdom”. The complete text of the June 2025 Economic Bulletin is available on the CBCS website at https://www.centralbank.cw/publications/economic-bulletins/2025.

Willemstad, June 25, 2025

CENTRALE BANK VAN CURACAO EN SINT MAARTEN

~Amid heightened global uncertainties~

WILLEMSTAD/PHILIPSBURG:---  According to the June 2025 Economic Bulletin of the Centrale Bank van Curaçao en Sint Maarten (CBCS), economic growth across the monetary union is expected to continue in 2025, despite a worsening external environment marked by heightened trade and geopolitical tensions. Real GDP in Curaçao is projected to grow by 3.1%, while Sint Maarten’s economy is expected to expand by 2.4%. However, the outlook remains subject to significant global and domestic risks, which are tilted to the downside. Moreover, the likelihood of the global risks materializing has increased due to the deteriorating international environment and rising uncertainty. The pace of expansion in both Curaçao and Sint Maarten in 2025 will be more moderate than in 2024, when Curaçao recorded a real GDP expansion of 5.0% and Sint Maarten grew by 3.0%. Nonetheless, tourism will remain the main driver of growth, spurring activity in related sectors such as accommodation & food services, transport, storage & communication, and real estate, renting & business activities. Additionally, the construction sector is expected to continue expanding, supported by both public and private investment.

On the expenditure side, Curaçao’s real GDP growth in 2025 will be driven by domestic demand, with both private and public spending contributing positively, moderated by a slight decline in net foreign demand. The increase in private demand is primarily the result of ongoing investment projects in the utilities, real estate, and tourism sectors. Private consumption is expected to grow marginally, constrained by the still-elevated inflation. Public demand will rise due to higher government investment and consumption. Meanwhile, net foreign demand is expected to decline, as the increase in imports will surpass the higher exports. In Sint Maarten, real GDP growth will also be led by private demand, supported primarily by new large-scale investments, particularly in the utilities sector and continued airport development. Public demand will contribute positively through increased government investment, including the construction of a new prison and a mental health facility, along with higher spending on wages and salaries. Net foreign demand will make a modest positive contribution, as export growth is expected to exceed the increase in imports. Maintaining growth momentum in the medium term . Looking ahead, real GDP growth will moderate across the monetary union over the medium term. In 2026, Curaçao’s economic growth is projected to ease to 2.4%, while Sint Maarten’s is expected to slow to 2.2% in the same year. Private demand, and to a lesser extent, net foreign demand, will be the main drivers of growth. By 2029, growth in both countries is expected to continue softening, as their economies transition to a more sustainable pace. Real GDP growth is projected to converge to 2.0% in Curaçao and 1.9% in Sint Maarten, primarily driven by private demand.

Outlook influenced by intensifying global uncertainties. Risks to the outlook remain tilted to the downside, although the likelihood of global risks materializing has increased due to recent developments. Global risks include the escalation of (retaliatory) trade measures and prolonged trade policy uncertainty driven by high U.S. tariffs and new port fees targeting Chinese-linked vessels. These developments pose a significant risk to import-dependent economies like Curaçao and Sint Maarten, where inflation closely follows U.S. price trends. Another global risk is the slower-than-expected monetary policy easing or even the potential reversal in monetary policy by the Fed which may trigger increased capital outflows and reduce foreign direct investment in Curaçao and Sint Maarten, impacting key sectors like tourism and real estate. In addition, intensified geopolitical tensions in Eastern Europe and the Middle East could disrupt global supply chains and raise energy and other commodity prices while renewed or expanded U.S. sanctions on Venezuela could further hinder the country’s economic growth, potentially triggering social unrest and another wave of migration. On the domestic side, extreme weather events due to climate change can damage crucial infrastructure in Curaçao and Sint Maarten, while increased concerns on the medium-term financial sustainability of the healthcare and social insurance systems on both Curaçao and Sint Maarten also pose a significant downside risk to the outlook of the monetary union. Delays or uncertainty surrounding the refinancing of maturing government bonds in Curaçao and Sint Maarten could increase fiscal vulnerabilities and weaken investor confidence, putting pressure on overall economic stability. Tighter financial conditions could raise borrowing costs, limit fiscal buffers, and strain public finances if favorable terms with the Dutch State are not secured. The June 2025 Economic Bulletin is available on the CBCS website at https://www.centralbank.cw/publications/economic-bulletins/2025.

Willemstad June 25, 2025

CENTRALE BANK VAN CURACAO EN SINT MAARTEN