WILLEMSTAD--The monetary union has not entered the danger zone, Central Bank of Curaçao and St. Maarten (CBCS) President Emsley Tromp told the Central Committee of Curaçao's Parliament in connection with the credit freeze for commercial banks.
However, the worsening situation of the balance of payments and foreign exchange reserve does demand preventive action, hence the measure precisely to avoid any devaluation risk, Tromp explained.
Practically all members present showed understanding for the restriction. The MFK fraction did not attend the meeting.
Chairman of Parliament Ivar Asjes (PS) said Dean Rozier of coalition party MFK had excused himself from the meeting scheduled at the last minute, as had Pedro Atacho of the main opposition party PAR. In addition to the other members of the MFK fraction, PS leader Helmin Wiels and MAN fraction leader Eunice Eisden also were absent without notice.
Tromp reported that he had met with Finance Minister George "Jorge" Jamaloodin (MFK), who is very critical of the decision, to provide clarity and at least had received the impression that government understood the need for the steps to limit consumptive spending and thus imports.
Although the foreign currency reserve is still above the international minimum regarding import-coverage, CBCS believes action is needed now to ensure the stability of the Antillean guilder. The bottom line is that the imports are exceeding exports of goods and services by far on both islands, with all consequences thereof.
The economic growth is insufficient. Private loans have increased enormously in Curaçao, while – to the contrary – in St. Maarten they actually have decreased in recent years.
Source: http://www.thedailyherald.com/islands/1-islands-news/26487-no-need-to-panic-tromp-tells-mps-.html
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