WILLEMSTAD – 1 Jan. 2007 -- The perspective of the public finances of Curacao is not at all rosy in the New Year.  The problems of liquidity remain critical, especially in the first months of 2007, while the debts continue to grow due to the persistent deficits. 

In 2006, the island government’s debts on treasury bills and bond loans have exceeded the one milliard guilders bounds.  They increased from 939.9 millions at the end of 2005 to 1002.2 millions at the end of December 2006.  The total debt has also increased and is currently 2.5 milliards.   This emerged from the transition document Comply or Explain of Eugene Rhuggenaath (PAR), who passed the Finance-commissaryship on to Ivan Strick (FOL) of the new Governing Body last week.  Besides, these figures do not include the annuity loans to Apna.   

The debt at the end of December 2005 was 2.416.7 million guilders. This was already 2.530.5 millions at the end of October of 2006, so an increase of 113.8 millions.

It includes the tax arrears to Apna and the Road fund.  The liquidity situation remains difficult in the coming months and year, states the document.  And the reason is a structural budget deficit, the falling short of planned collections, and the unforeseeable refinancing of treasury bills and bond loans since mid 2006.  About 336.9 millions in repayments that need to be paid off or refinanced will expire in 2007. 

The government is therefore pressing Rif Resort Hotel NV, the owner company of the Marriott Hotel to pay back the debt.   Eugene Rhuggenaath (PAR) says that Mayor Lisa Richards-Dindial and commissioner Charles Cooper (MAN) and the by now ex-commissioner Gerrit Schotte (MPK) and himself have agreed that Rif Resort will ask her bank to pay out an advance of 30 million guilders; this in anticipation of an appraisal that the island government will carry out.