THE MINISTRY OF FINANCE SENDS REMINDER LETTER TO HOLLAND
Government of Sint Maarten
25 May 2020
Holland hasn’t subscribed to the bond sent in 2019
The Country of Sint Maarten has made preparations in the past year to finance part of its capital expenditure by issuing a public bond for an amount of NAƒ 40 million. The Kingdom Act Financial Supervision Curacao and Sint Maarten (Kingdom Act) regulates the supervision of the public finances of the Country Sint Maarten and the Country Curacao. As usual, prior advice was obtained from the Board of Financial Support (Cft). In its letter dated 2 September 2019, the Cft advised positively on this bond to cover capital expenditure.
According to the Kingdom Act, Sint Maarten can finance its expenditure on the ‘kapitaaldienst’ by issuing a bond, once the relevant conditions are met. Sint Maarten sent their issuance of a bond to be subscribed to by The Netherlands in October 2019. When all of the conditions are met, it is not a matter of The Netherlands agreeing or not but “subscribing”. The Netherland’s Ministry of Finance has no discretionary or decisive role in the current subscription process, they are only obligated to subscribe.
The issuing of the bond has been made public. Although the Cft has advised positively on the issuance of the bond, The Netherlands has not yet subscribed to this bond. It is clear that the actions of The Netherlands are not in accordance with the Kingdom Act and violate the agreements found in the Kingdom Act agrees upon by all Kingdom partners.
St. Maarten’s Ministry of Finance has sent another letter reminding The Netherlands to subscribe.