Political tension and instability created by the National Alliance led Government is bad for business confidence and can negatively impact the sovereign credit rating of the country. Moody’s Credit rating agency says that political instability is credit negative for a country.
The current new parliamentary majority has brought stability back to the country at the parliamentary level. The current National Alliance led Government should do the honourable thing and resign. A National Alliance standoff by refusing to accept political reality in a parliamentary democracy is detrimental to investor confidence and could force a credit rating downgrade for country Sint Maarten.
We are hoping that Country Sint Maarten does not find itself on Moody’s Weekly Credit Outlook due to the current National Alliance standoff. Political risks are one of the key factors that are taken into account when rating a country.
The parliamentary majority has taken steps to bring order to the governance of the country and bring back stability. A new Council of Ministers is to be appointed within short which will complete the governance process.
Article 33.2 of the Constitution of Sint Maarten says: If a minister no longer enjoys the confidence of the Parliament, he shall surrender his office.
The UP-led Government from October 2010 to May2012 was successful in building the country’s economy to a level at that point in time which led to Moody’s assigning the country a first time Baa1 rating with a stable outlook six months after the UP lost its majority support.
Our International Airport also has a favourable rating resulting in a credit rating of Baa2 with an outlook of stable.
The current political climate being created by the irresponsible actions of the National Alliance and its Independent coalition partners are doing more harm to the country than good. A down grade makes it harder for Sint Maarten to borrow on the international market and decreases foreign investor confidence in the economy.
The country can be rest assured that the current parliamentary majority will bring order and restore confidence due to the irresponsible actions of the National Alliance/Independents standoff.
Drs. Gracita Arrindell
United People’s (UP) Party
Member of Parliament