THE HAGUE–The Kingdom Council of Ministers on Friday approved St. Maarten’s request for liquidity support for the year 2018.
“The financial situation of St. Maarten has worsened considerably after Hurricane Irma,” the Council of Ministers said in a statement. St. Maarten already received liquidity support from the Dutch government for the year 2017.
St. Maarten received 24.6 million euros (NAf. 51.7 million) in liquidity support in 2017. The amount of liquidity support St. Maarten is going to receive this time was not announced.
St. Maarten sent a request for liquidity support to the Kingdom Council of Ministers in April, but to receive any aid St. Maarten first needed to present an approved budget. The request for support also required a positive advice from the Committee for Financial Supervision CFT.
As St. Maarten has met both requirements, the request for support was granted. The Netherlands can offer liquidity support based on Article 36 of the Kingdom Charter, in which it is stated that the countries of the Kingdom provide each other with aid and assistance.
State Secretary of Home Affairs and Kingdom Relations Raymond Knops is to make further agreements with the World Bank for more liquidity support to St. Maarten for this year and, possibly, for subsequent years. CFT will also be involved in this.
The approved budget for 2018 has a deficit of NAf. 197 million. Given the current financial situation, St. Maarten expects that the shortage of liquidity in 2018 is almost equal to the country’s deficit, then-Minister of Finance Michael Ferrier said in February.
Source: The Daily Herald https://www.thedailyherald.sx/islands/78358-liquidity-support-for-st-maarten-approved
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