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Aruba: Crisis assessment and management
In view of the coronavirus crisis, the Aruba government announced the following three steps (news bulletin):
Step 1. Calculation of the financial impact of the the crisis on Aruba.
Step 2. Search for funds on the international market to secure the continuation of AZV and SVB, as well as the Aruba government.
Step 3. Once the funds are in, proceed to reduce and adjust government costs.
Parliament had approved the 2020 budget and the government was awaiting the approval by the Council of Ministers of the Dutch Kingdom in order to start looking for funds on the international market.
Financial aid from the Netherlands
The decision of the Council of Ministers was made public on April 9th, 2020:
- An amount of Awg 42.8 Million will be made available to Aruba immediately, payable as a ‘bullet-loan’ at 0% interest.
- The Aruba government should present a proposal on wage subsidy and job preservation before May 1st, 2020.
- Aruba should lower its financial deficit by lowering among others the costs of government personnel (personeelslasten) and use these savings to finance the additional expenditures in connection with the emergency plan.
- The Financial Supervisory Committee will make further concessions with the Aruba government to guarantee an efficient management of the funds made available specifically focused on effectiveness and avoidance of bureaucracy.
Financial aid for Curacao and St. Maarten
Curacao and St. Maarten will also receive financial aid from the Netherlands under the same conditions, i.e. a two-year bullet-loan at 0% interest, as long as the Netherlands can also borrow at 0% interest. The loan will be subject to refinancing after two years.