Theo: "We will also go it on our own with Central Bank"

June 10, 2011 6:54 AM

PHILIPSBURG--It is very clear that the issue of a joint Central Bank with Curaçao and a joint currency has become "a lame duck, making it extremely important for each country to go it on their own," said Deputy Prime Minister Theo Heyliger in response to the Curaçao Parliament adopting a motion on Wednesday evening to instruct its government to establish its own Central Bank.

While there is still some controversy concerning the motion, Heyliger told The Daily Herald it was a clear signal from the Curaçao coalition Members of Parliament to move away from a joint Central Bank. "It's simply [that] we will also go it on our own with the Central Bank."

The way forward with possibly the country's own Central Bank was discussed within the Council of Ministers more than a week ago before the motion was tabled, he added. "Now, with the motion, it's crystal clear what we have to do."

Heyliger and Finance Minister Hiro Shigemoto head to Curaçao on Monday to meet with Curaçao Prime Minister Gerrit Schotte and Finance Minister George Jamaloodin to talk about the Central Bank and the motion.

"Of course we will also have to have discussions with the Dutch Government, as this idea for this joint Central Bank was born in the negotiation for country status and they will have their views, but it's clear that construction cannot work."

Important for the way forward is the division of assets of the Central Bank the two countries inherited from the former Netherlands Antilles. St. Maarten owns 26 per cent of the bank's assets – assets that would be critical in establishing a properly functioning and staffed bank.

"It is better to have learnt early that desire to not work together than for this matter to have festered and cause more problems in the future for St. Maarten," Heyliger said. "Looking after our financial supervision ourselves would lessen hassle and dependence on another country. This would also finalise the break-up of the Netherlands Antilles. After all, what added benefit has this union with Curaçao brought us? They have never helped us or issued bonds on our behalf. We have had to find our own way over the years."

Heyliger also saw another stalemate looming had this motion not been passed. That stalemate would have had to do with the appointment of the chairman of the Supervisory Board of the Central Bank. This post has to be filled by a jointly proposed candidate of the two countries. So far only St. Maarten has named its candidate – tax consultant Martin Hassink – and Curaçao is to put forward its candidate by June 16.

"Curaçao would want to appoint the chairman and later a new bank president and who knows what new philosophy that new president might bring to the table and whether it would be someone with St. Maarten's interest as well at heart."

As for the idea of a joint central bank, Heyliger said, "This government is interested in using the [US] dollar so what work is there left for a Central Bank other than some supervision? And the supervision we are very capable of doing ourselves."

Lessening dependence was the key factor when Shigemoto informed Central Bank of Curaçao and St. Maarten President Emsley Tromp last week that government wanted the St. Maarten branch to become fully functional and independent from Curaçao by January 2012. That reference letter was used by Curaçao politicians as the springboard for their motion.

"Now that the Curaçao Parliament has made its position clear, St. Maarten will not sit around and wait. We will begin the process for our own central bank as well," said Shigemoto, mirroring Heyliger's comments.

It is expected that Shigemoto will be questioned on the central bank issue when he appears before the Central Committee of Parliament today, Friday, for the continuation of the debate on amendments to the 2012 budget.

Democratic Party (DP) Member of Parliament Roy Marlin also believes St. Maarten should start discussions on establishing its own Central Bank, in accordance with the original intentions of the constitutional change process.

Marlin said that at least the discussion should start, nothing rushed, taking into consideration that the initial discussion in 2006 was for separate banks for the territories. He said the idea of a joint entity had not surfaced until after negotiations had progressed with Kingdom partners.

He said St. Maarten should not start these discussions based on the feelings of Curaçao, but it also should not think twice about looking at the possibility for obvious reasons, including the recent drama involving the Central Bank President, which could have been handled differently, in his opinion.

"It should not be rushed and we should go through all the right procedures and involve stakeholders on all levels, but it should be seriously considered," Marlin said.

(Source: The Daily Herld Sint Maarten)

10 June 2011.