Kingdom of the Netherlands-Curacao and Sint Maarten: 2019 Article IV Consultation-Press Release and Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands-Curacao and Sint Maarten

April 1, 2020

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Kingdom of the Netherlands-Curacao and Sint Maarten: 2019 Article IV Consultation-Press Release and Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands-Curacao and Sint Maarten, (USA: International Monetary Fund, 2020) accessed September 19, 2024

Summary

This 2019 Article IV Consultation focuses on Curaçao and Sint Maarten’s near and medium-term challenges and policy priorities and was prepared before coronavirus disease 2019 became a global pandemic and resulted in unprecedented strains in global trade, commodity and financial markets. The fiscal position in Curaçao improved in the past two years, in part due to implemented fiscal measures. Both Curaçao and Sint Maarten would benefit from introducing a Fiscal Responsibility Framework. It could incorporate a central government debt ratio as a long-term anchor and operational rules calibrated to meet it. The report suggests that risks in the financial sector need to be addressed as a matter of priority. The authorities should develop a strategy for addressing financial sector vulnerabilities with the objective of preserving financial stability while minimizing fiscal costs. Significant strengthening of supervision and a complete overhaul of the bank resolution framework are also urgently needed. An across-the board improvement in the governance framework should be a key priority in both countries. Vulnerabilities in the financial system point to the need to strengthen governance in the financial sector.

Subject: Economic sectors, Extra-budgetary funds, Fiscal policy, Fiscal stance, Public debt, Public financial management (PFM), Tourism

Keywords: Article IV consultation discussion, CAD in Curaçao, Capital expenditure, Caribbean, Consultation discussion, CR, Curaçao payroll process, Current account, Economy of Sint Maarten, En Sint Maarten, Extra-budgetary funds, Financial system, Fiscal stance, Global, IMF staff estimate, ISCR, Labor market, Liability positions vis-à-vis nonresident, Recovery in Sint Maarten, Sint Maarten authorities, Sint Maarten authority, Tourism, Trust fund, Union GDP

Publication Details

Pages:

85
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/094
Stock No:

1CUWEA2020001
ISBN:

9781513539362
ISSN:

1934-7685

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