Chamber of Commerce: "Without debt construction: doom-scenario-threat"

May 15, 2009 6:20 AM

“Without debt reconstruction, Curaçao will experience a true doom-scenario with serious social-democratic consequences”, the Chamber of Commerce (Kamer van Koophandel) states in a press release, reverting to the referendum coming Friday. The press release contains an advice to the Board of Governors from the Chamber as an advisory body of the local business, trade and industry.

The Chamber is of the opinion that with a debt construction and debt take-over, as reported in the Yes-option, provisions are enhanced to propel the economy in the right direction. Curaçao is confronted with two huge challenges, according to the Chamber of Commerce. On the one hand, how to cope with the consequences of the worldwide economical crisis, of which the initial effects are already tangible according to the Chamber, and on the other hand, how to strengthen the economical structure with growth potential and defensibility to remain far outside the danger zone. In this context, the Chamber refers to the recent comments of the Costa Rican President and Noble Prizewinner Oscar Arias, who stated that ‘where governments refrain from investing in education, public health care, and the social and physical infrastructure, the coming generations will be saddled with gigantic problems’.

In the press release, the Chamber pleads to break out of the current vicious circle on the island. “The structure of the economy on Curaçao is increasingly becoming more subverted by the height of the national debt and the linked interest burdens. There was no room for investments.” However, with the announced debt reconstruction, this circle will be broken, says the KvK. “There will be a balance in the budgets and the interest charges will be manageable, so that Curaçao can concentrate on looking towards a positive future”.

According to the Chamber, the debt reconstruction does require adequate follow-up. The Chamber considers more investments by the government in social output, such as in education and infrastructure, while expenditure must be limited. On the long term, it will be beneficial, while this also offers the best opportunities to combat the consequences of the economical crisis.

(Source: National newspaper Amigoe)

May 12, 2009