Banking and Finance

Deposit guarantee coverage for BES Islands to increase to $25,000 starting 2025

THE HAGUE – From January 1, 2025, the coverage limit of the deposit guarantee scheme (DGS) for Bonaire, Sint Eustatius, and Saba will be increased to 25,000 dollars. This means that bank customers on these islands will be able to recover up to that amount of their savings if a bank goes bankrupt. Until now, this amount was 10,000 dollars per client.

The Dutch Council of Ministers made this decision on the proposal of Minister Van Weyenberg of Finance. The goal of the increase is to ensure that at least ninety percent of all savings on the BES islands are covered.

In addition to raising the coverage limit, there are two other important changes. First, the residency criterion will be eliminated. This means that all account holders on the BES islands will fall under the DGS BES, regardless of where they live. Second, the financing of the fund will change. From now on, banks will contribute to the fund’s buildup in advance, similar to the approach in European Netherlands.

The decision is now being submitted to the Council of State for advisory. The new deposit guarantee scheme for the BES islands will come into effect on January 1, 2025.

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