Financial Supervision Curacao and St Maarten Extended English Translation
Financial supervision of Curacao and Sint Maarten extended
News item | 18-10-2024 | 16:45
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The financial supervision for Curaçao and Sint Maarten, as regulated in the Kingdom Act on Financial Supervision Curaçao and Sint Maarten (Rft), will be extended. On October 4, the Kingdom Council of Ministers decided this based on the advice of the Rft evaluation committee 2024 for the period 2021-2023. State Secretary Szabó is sending a letter and the report of the evaluation committee to the First and Second Chambers today.
The evaluation committee, consisting of independent experts from Curaçao, Sint Maarten and the Netherlands, concludes in its report that the two countries do not yet structurally comply with the budgetary standards from the Rft. The committee states that the covid pandemic has contributed significantly to this. Despite the recovery of the economy after the covid pandemic, the committee does not consider it possible to end the supervision at this time. The supervision will therefore remain in force. A next evaluation will take place no later than 2027.
The committee makes three important recommendations: development of a testing framework, better use of the legal possibilities within the Rft and safeguarding independent institutions. For example, the evaluation committee states that the Financial Supervision Board (Cft) and the countries must jointly develop a framework with which it can be objectively determined whether the budgetary standards are being met. Furthermore, the committee points to the possibility for countries to make strategic investments within the standards of the Rft. Finally, the committee advocates further strengthening the basis of government finances by establishing strong, independent institutions.
State Secretary Szabó: “the aim of the law is and remains sustainable government finances and sound financial management. This is an important precondition for self-reliance of the countries. I am happy to continue working with the countries on this important path.”
The countries of Curacao and Sint Maarten have indicated that they want a perspective on a future without supervision. The Kingdom Council of Ministers has therefore invited both countries to continue working on sustainable government finances and sound financial management, together with the Cft and the Netherlands.
Supervision is exercised by the Council of Ministers of the Kingdom, with the Cft having a signalling and advisory role. The Rft came into effect in 2010 and had a term of five years. Supervision can be extended by 3 years each time after evaluation.