The HagueL--- Curaçao and Sint Maarten have officially informed the Netherlands that they cannot meet their repayment obligations for loans taken out in 2010, which are due in October 2025. The two Caribbean countries, both part of the Kingdom of the Netherlands, now face mounting financial pressures due to a lack of budgetary planning for these debts.
Financial Shortfall
Curaçao owes 140 million guilders, while Sint Maarten’s debt is 73.5 million guilders. Despite the looming deadlines, neither country included provisions for these repayments in their national budgets, drawing criticism from the Dutch government.
Both governments have requested that the Netherlands refinance these loans, citing their inability to meet the financial obligations. However, Dutch State Secretary for Kingdom Relations, Zsolt Szabó, expressed skepticism about the necessity of refinancing and has asked the College of Financial Supervision (Cft) for advice on the matter.
Supervisory Body Recommends Refinancing
The Cft, which oversees financial compliance in the Caribbean countries of the Kingdom, concluded that refinancing is unavoidable. Without it, Curaçao and Sint Maarten would have to draw heavily from financial reserves intended for unexpected setbacks, compromising their economic stability.
However, the Cft has recommended strict conditions for any future loans. Unlike the current agreements, where repayment is expected in a lump sum at the end of the term, the Cft has urged that future loans be repaid in annual installments to encourage better financial planning and accountability.
Statement from St. Maarten’s Finance Minister
The Minister of Finance of St. Maarten, Marinka Gumbs, has confirmed the country's financial challenges. She stated that the Government of St. Maarten initially informed the Cft about the debt situation and requested the body advocate on St. Maarten’s behalf with the Ministry of the Interior and Kingdom Relations (BZK). Her comments reflect the government’s active engagement in addressing the issue while seeking support from higher authorities.
Broader Debt Challenges
The financial challenges facing Curaçao and Sint Maarten extend beyond these loans. Both countries have other large debts to the Netherlands maturing in the coming years. Curaçao owes over 1.3 billion guilders, while Sint Maarten’s outstanding debt is 178.6 million guilders. Here too, no provisions have been made in their budgets for repayment, raising concerns about their long-term fiscal management.
Compliance Issues in Curaçao
Adding to the strain is Curaçao’s apparent unwillingness to comply with financial oversight norms. Earlier this year, the Cft flagged that Curaçao’s 2025 budget did not meet the standards set by the Kingdom Act on Financial Supervision. The island was required to submit a revised budget plan by April 1 but failed to do so. The Cft has since issued a final deadline of May 13 for a draft amendment to the budget, but compliance remains uncertain.
Next Steps
It remains unclear whether the Netherlands will agree to refinance the existing loans under the terms recommended by the Cft. If refinancing is approved, it is expected to come with stringent conditions to ensure that both Curaçao and Sint Maarten improve financial planning and avoid similar crises in the future.
The unfolding situation highlights the ongoing challenges of economic stability and fiscal responsibility within the Kingdom, raising important questions about governance and accountability across the Dutch Caribbean territories.
