Central Bank President calls for joint risk fund
PHILIPSBURG--The establishment of a joint risk fund among the Dutch Caribbean countries, once the authority to borrow is removed, was recommended by Central Bank of Curaçao and St. Maarten President Emsley Tromp in his presentation of the Bank’s Annual Report 2014 to the press, in St. Maarten on Thursday.
“Curaçao and St. Maarten are small open economies very susceptible to external shocks, including natural disasters,†Tromp said. “If they will have to finance capital investments through surpluses on the current account budget, creating extra fiscal buffers to mitigate the social and economic costs from external shocks will not be viable.â€
To provide for that buffer, “an insurance-type stabilisation fund†can be established for the Dutch Caribbean from which temporary funds can be obtained to mitigate the impact of such an external shock.
“Instead of burdening future generations with unsustainable debt, the standing subscription rule can be used to provide the initial resources for the suggested stabilisation fund Read more
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