Willemstad- The governments of Curaçao and the Netherlands have reached political agreement on the third tranche of liquidity support 2020. The agreement lays out the details of a multi-year cooperation between the two countries.

In exchange for reforms in Curaçao, the Dutch cabinet will offer new liquidity support, but will also invest in several areas in the development of Curaçao. For example, the Netherlands will support Curaçao with the agreed structural reforms.

In addition to continuing budget support for the deficits that have arisen as a result of the Corona crisis, this is also done with knowledge and expertise. To this end, the Caribbean reform and development body, in short the COHO, will be set up to further develop the reforms together with the ministries in Curaçao and in consultation with stakeholders. This entity will also help with its implementation.

The COHO will not take over powers from Parliament, the Government and the responsible government bodies; this has been expressly agreed and recorded in the consultations. However, the COHO will be enabled to supervise the implementation of the structural reforms and to attach the consequences to insufficient cooperation.

Funds

By reaching this agreement, the Netherlands is making funds available for educational housing, a total of 30 million euros, strengthening the rule of law, a total of 25.3 million euros and strengthening the entrepreneurship and investment climate, with a maximum of 20 million euros as a guarantee- instruments are feasible and effective.

All investments that contribute to sustainable economic development, employment. In particular, strengthening the business and investment climate and improving access to finance are important for business.

“The situation in Curaçao is challenging, but at the same time offers perspective. We take our responsibility and accept the sacrifices that come with it, but especially focus on the opportunities that are offered to us. Curaçao has enormous socio-economic potential. It is in our hands to make the most of this potential. However, Curaçao cannot do it alone and on its own, but of course we want to work towards that”, said PM Ruggenaath.

Structural

According to State Secretary Knops the agreement will ensure structural reforms. “With this package of measures we are working on structural reforms that should make the economy and society of Curaçao more sustainable. In addition to the reforms, there is also room for investment for the island. Curaçao must emerge stronger from this crisis and be able to stand on its own two feet, because the people on Curaçao deserve a social and economic perspective. This political agreement is an important first step in this. This will require continuous effort from all parties in Curaçao.”

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