September 5, 2023 –WILLEMSTAD – The General Pension Fund of Curaçao (APC) achieved a coverage ratio of 103.7% at the end of December 2022. This is stated in the 2022 annual report. The abbreviated consolidated annual report was already submitted to the Ministry of Finance at the end of July 2023.
The coverage ratio is a crucial indicator of the health of a pension fund. It indicates the extent to which the fund is able to meet its obligations. In other words, it measures how well the pension fund can pay the pensions of participants and retirees. A coverage ratio of 103.7% means that APC has more than enough resources to meet these obligations.
The year 2022 was a year that, according to APC, was characterized by global economic uncertainties, with factors such as the war between Russia and Ukraine and significant inflation affecting financial markets. Despite these challenges, APC claims to have maintained a solid coverage ratio.
Curaçao itself was in a similar economic context, with rising commodity prices and a resurgence in tourism, but also facing some challenges. “Despite these difficulties, local financial institutions remained stable and resilient, which is encouraging for the island’s future economic prospects,” according to APC.
As Curaçao takes steps towards economic recovery, APC says it remains vigilant about ongoing economic developments and their potential impact on its investment portfolio. The fund continues to commit to a prudent and sustainable investment policy, with the goal of protecting the interests of retirees and participants while promoting sustainable growth.