Curaçao’s debt position declines in first quarter of 2023
June 13, 2023 –WILLEMSTAD – Curaçao has witnessed a decrease in its total debt position during the first quarter of 2023. At the close of 2022, the debt amounted to 4,347 million guilders, which decreased to 4,248 million guilders by the end of the first quarter in 2023.
Consequently, the debt-to-GDP ratio now stands at 72 percent, as indicated by the latest report from the College of Financial Supervision. The debt ratio demonstrates a modest downward trend, primarily attributed to the growth of economic activity in Curaçao following the COVID-19 pandemic.
Nevertheless, the comprehensive reporting of figures pertaining to the public sector for 2023, 2024, and previous years has not yet been finalized. As a result, the assessment of the interest burden norm, in compliance with Article 24 of the Kingdom Act on Financial Supervision, remains unattainable.
The interest burden norm serves as a financial benchmark, determining the maximum portion of a government’s budget that can be allocated to interest payments on the debt.
In response, Curaçao emphasizes that the available budgetary resources should be primarily utilized to enhance investment levels rather than solely focusing on further reducing the debt position. Such a strategic approach has the potential to contribute to a stronger and more sustainable economic foundation in the long run.
