GREAT BAY--The Government of St. Maarten has commissioned a feasibility assessment into establishing a Development Bank for the country, Finance Minister Marinka Gumbs has confirmed in response to questions from Member of Parliament Sarah Wescot-Williams during Parliament's handling of the draft 2027 national budget.
The development represents a step toward exploring a financial institution intended to support economic development, improve access to financing and encourage investment in sectors that may not be adequately served by existing financial institutions. However, the Minister emphasized that the initiative remains under assessment and that no final decision has been made to establish the bank.
According to Gumbs, the Ministry of Finance commissioned the study to determine how a Development Bank could be structured, governed, financed and implemented in a manner that responds to St. Maarten's development needs. The assessment is intended to examine the financial and institutional requirements that would have to be addressed before such an institution could become operational.
The Minister provided the information after Wescot-Williams questioned whether Government should reconsider how it finances and executes major capital projects. The MP raised concerns about the repeated postponement of investments, with projects and their corresponding financing carried forward from one budget year to the next without sufficient progress.
Gumbs acknowledged the problem and disclosed that Government is also exploring a separate financing mechanism in the form of a dedicated multisector investment fund. Such a fund could provide more predictable financing for priority Government projects over several years, reducing reliance on annual budget allocations and individual financing arrangements.
The Minister explained that the proposed fund and Development Bank would serve different purposes. The multisector fund would primarily support public capital investments, while the Development Bank would have a broader economic development mandate, potentially assisting emerging and underserved sectors, improving financing opportunities, supporting economic diversification and facilitating strategic investments.
She stressed, however, that creating additional financing mechanisms would not automatically solve Government's difficulties in executing capital projects. Ministries would still have to strengthen project preparation, develop multiyear investment plans, establish priorities and demonstrate that projects are sufficiently prepared before financing is committed.
The Minister also recognized that financing and implementation must be considered together, particularly given Government's history of carrying forward investments that have not progressed according to schedule.
When asked how many projects in the 2026 and 2027 capital budgets were ready to proceed, Gumbs did not provide an overall number. She indicated that individual ministries are responsible for determining the readiness of their respective projects. For the Ministry of Finance, she identified the tax system, financial management ERP system and TelEm building as projects that were ongoing or ready to proceed.
Neither a completion date for the Development Bank feasibility assessment nor a timetable for deciding on the proposed multisector fund was provided.
The idea of establishing a Development Bank for St. Maarten had been raised as far back as 2016, when then MP Christophe Emmanuel called on the Social Economic Council (SER) to conduct a study into the potential benefits and economic impact of such an institution.
Emmanuel submitted his request to the SER through then-Chairwoman of Parliament Sarah Wescot-Williams on January 22, 2016, citing stagnant economic growth among small and medium-sized businesses.
He wanted the study to examine the viability of a Development Bank, its potential functions, gaps in the country's existing financial system and the financing needs of small and medium-sized enterprises. At the time, Emmanuel maintained that establishing such a bank would be important to St. Maarten's economic development.
He has maintained that position ever since.
