THE HAGUE--Are St. Maarten's finances, long-term planning and fiscal structure sound enough to repay a long-term US $150 million bond issue for the harbour? With this question in mind, the liberal democratic VVD party sought clarity from the Dutch Government on the St. Maarten harbour bond issue on Thursday.
VVD Member of Parliament (MP) Andr� Bosman questioned whether it was "responsible" to organise a bond issue of this size considering St. Maarten's "shrinking economy and the unclear long-term durability" of the country's budget. He did not want the Netherlands to end up footing the bill if St. Maarten could not pay this debt.
In a series of questions to Dutch Minister of Home Affairs and Kingdom Relations Liesbeth Spies, Bosman wanted to know whether the Netherlands had been involved in some way in the US $150 million bond issue in conformity with the law on Financial Supervision. He asked whether the Netherlands had bought these bonds.
Bosman sought clarity on the possible role of the Committee for Financial Supervision CFT in the bond issue. He also enquired in what way the CFT had been involved and if it had not been involved, why not.
Bosman said in a reaction Thursday evening that a long-term bond issue like this one required a solid fiscal system, long-term financial planning and a budget that was in order. "After all, it is a loan and St. Maarten has to pay it back. If St. Maarten can't pay it back, who will end up footing the bill? The Netherlands? That cannot be true," he told The Daily Herald.
He pointed out that The Netherlands had the legal obligation to buy bonds of the newly-established countries in the Kingdom if there proved to be insufficient interest from investors and said that was why it was extra-important to obtain clarity from the minister on this bond issue.
Bosman further inquired about reports that Cura�ao was planning a bond issue of NAf. 250 million. He wanted to know if here too the Netherlands would be obliged to buy these bonds to conform to the Financial Supervision Law.
He asked the minister whether she agreed with the VVD that "the Netherlands could only lend money to Cura�ao if the CFT guarantees the Netherlands that Cura�ao's budget is in order in the short and long term."
Source: http://www.thedailyherald.com/islands/1-islands-news/25393-vvd-seeks-clarity-on-harbour-bond-.html
Classical music Energy bills Madagascar Milan Baros Economic policy European debt crisis
No comments:
Post a Comment