Cft gives Minister of Finance Javier an insufficient grade: Curaçao’s budget is not valid

April 17, 2023  –WILLEMSTAD – The Board of Financial Supervision (Cft) has given a failing grade to the Minister of Finance, Javier Silvania, for the budget that was approved by the Curaçao Parliament. According to the Cft chairman, the budget does not provide a reliable, realistic, and up-to-date picture and is not in compliance with the Financial Supervision Kingdom Act. 

The Cft has notified Silvania in a letter that he has until April 28 to bring the budget in order. The letter also reveals that the Pisas government has refused to implement the recommendations made by the Cft on February 6. It appears that the government is trying to delay the legally mandated compensation of previous deficits as long as possible. Moreover, Minister Javier seems to be banking on the possibility that the Netherlands is willing to refinance Curaçao’s state loans on favorable terms. 

The Cft is an independent financial supervisor appointed by the Dutch government to oversee the financial management of the Caribbean islands that are part of the Kingdom of the Netherlands, including Curaçao. The Cft is responsible for ensuring that the financial management of these islands is sound and in accordance with the applicable legislation. 

The Cft’s letter to Silvania highlights the urgent need for the government of Curaçao to take action to bring the budget in order. A budget is a crucial tool for any government to plan and allocate resources, and an unreliable budget can lead to a host of financial problems, including deficits, increased borrowing costs, and potential default on loans. 

The government of Curaçao now has a few weeks to respond to the Cft’s letter and take the necessary steps to address the deficiencies in the budget. The Cft will continue to monitor the situation and take further action if necessary to ensure that the financial management of Curaçao is in line with the law and sound financial practices.