Business in Curaçao and St. Maarten less safe

January 20, 2011 7:47 AM

ROTTERDAM--Curaçao and St. Maarten have been downgraded on the Political Risk Map 2011 of international financial and insurance broker Aon where it comes to doing safe business. The islands were placed in the risk category "medium-low."

Last year the Netherlands Antilles, then still a country, scored "low." Aruba's position remained unchanged: "medium-low." Puerto Rico and Barbados had a similar score.

The report makers called it "striking" that of the 19 countries placed in a higher risk group this year compared to the previous year, the majority were located in the Caribbean. Besides Curaçao and St. Maarten, these were: Antigua and Barbuda, the Bahamas, Barbados, Bermuda, the Cayman Islands, the Dominican Republic, Grenada, Haiti, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago.

The Dominican Republic and Jamaica were rated "medium-high," Cuba "high" and Haiti "very high," meaning that it is highly unsafe to do business in the latter country. Of all countries and islands in the Caribbean, only the US Virgin Islands and Guadeloupe scored better. They were placed in the risk category "low."

According to Aon, decreasing tourism numbers have an adverse effect on the economies of the Caribbean nations. Stricter credit conditions at commercial banks increase chances of default and national debts that cannot be paid.

"Political risks remain important influencing factors for companies looking for opportunities in upcoming markets in 2011," stated Marc van Nuland, management member at Aon Risk Solutions.

Aon Risk Solutions measured the political risk in 211 countries and regions using risk levels of exchanging currency, labour unrest, war, non-payment of national debt, political intervention, disruption of the supplier's chain and risks in the areas of legislation and regulation.

The worldwide Aon network comprises some 500 offices in more than 120 countries and has more than 59,000 employees. Aon Corporation specialises in financial and insurance services and is listed on the New York Stock Exchange (NYSE).

20 January 2011

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