WILLEMSTAD — The budget of the island territory Curaçao shows a deficit of 16.5 million guilders over the entire year of 2010. However, Finance-deputy Mike Willem (PAR) emphasizes, that with this budget Curaçao complies with the conditions to qualify for debt reconstruction by the Dutch government.
NEWS ARTICLE TAKEN FROM WWW.AMIGOE.COM
The island territory is departing from the fact that Curaçao will also qualify for debt reconstruction in 2010 as stated in the General Regulation of National Government Temporary Financial Supervision.
It is up to the College financial supervision (Cft) to determine whether the Board of Governors has complied with the conditions for 2010. The conditions for debt-reconstruction depart from the fact that the usual service of the budget (revenues minus expenditures) should be in balance and that the budget complies with the interest burden norm. This implies that the interest burden should tally with 5 percent of the average realized mutual revenues of the collective sector of a land, over the three years preceding the year in which the budget is or will be submitted.
In conformity with the legal regulations, the budget should be submitted before October 1st of each year to the chairman of the Island Council. This will also be carried out this year. The budget for 2010 assumes a surplus of 6 million guilders on the general service. There is a question of a deficit of 22.4 million guilders on the capital service, by which the budget will end up with a deficit of 16.5 million.
For the next four years, the Board of Governors is assuming that the island, according to its own long-range estimate, will continue to comply with the conditions to qualify for the debt-reconstruction by the Netherlands. The budget for 2010 departs from a surplus of 6 million guilders. Up to and including 2013, this surplus will vary between the 20.6 million in 2011, and 19 million guilders in 2013. According to the Board of Governors, Curaçao will also stay within the determined norms regarding the interest burden norm.
NEWS ARTICLE TAKEN FROM WWW.AMIGOE.COM