Prime Minister Wescot-Williams addresses statements made about CBCS

Statements have been made over the last days in the media to the effect that Sint Maarten, for her share in the assets of the Central Bank of Curacao and Sint Maarten (CBCS), is entitled to less say with regard the CBCS.

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The Prime Minister’s statement on behalf of the Government of Sint Maarten:
“In the final agreement of November 2006, the two countries, Curaçao and Sint Maarten signed a political agreement by which they have voluntarily chosen to enter a monetary union with one central bank.

The role a central bank plays, focuses on the health and stability of the financial system in a monetary union and as such there is no distinction in terms of policy, relative to for example the size of the countries forming the union. There is one policy for the entire union.
As an example, one can look at the policy of the European Central Bank for the European Monetary Union states.
In its policy-making and implementation, the central bank executes this task autonomously in relation to the governments of the countries.
This also ensures that none of the countries can influence the monetary policy in its favor and to the detriment of the other country.
The relative size of the respective country’s shareholding in the joint central bank as cited is therefore a concept that has no meaning in the context of the monetary and prudential policy that is executed by the joint central bank as regards the union as a whole.
That said, the relative size of the shareholding of the countries in the central bank is related exclusively to the division of possible profit. No-where in the central bank statute – or in any other law – is any indication to be found justifying that as a result of the relative size of the shareholding, Sint Maarten is entitled to less control rights.

On the contrary, both with regard to calling of meetings by the beneficiary countries and voting in those meetings, Sint Maarten has full and same rights as Curaçao (Article 32 central bank statute).
That equality in the area of control is also apparent in the important issue of appointing members to the Board of Supervisory Directors (BOD) of the CBCS. Of the total seven members of the BOD, each country proposes three members, and appointment of all members occurs by the countries jointly.
In addition, the Chairman of the BOD is -in summary- proposed by the countries jointly and is appointed and dismissed by joint resolution. (Article 25 central bank statute).
Finally, as a red line throughout the bank statute is the notion that Sint Maarten, except for its share in the bank’s assets, is in an equal position as Curaçao.
Thus it has been stipulated in Article 8 of the central bank statute that the CBCS exercises the supervision of the financial institutions according to rules which are adopted by harmonized national ordinances.

Any remarks to the contrary of what is stated above, has no grounds to stand on.”