No split up CBCS without The Hague

THE HAGUE--A split up of the Central Bank of Curaçao and St. Maarten CBCS is not solely a decision for Willemstad and Philipsburg to take. The Netherlands must be consulted, stated Dutch Minister of Home Affairs and Kingdom Relations Liesbeth Spies on Friday.

The Minister stated in a letter, dated April 12, which she sent to the Second Chamber and which was released on Friday, that a Central Bank for Curaçao and a separate one for St. Maarten was not an option without involving The Netherlands.

"I remind both governments that decision-taking on this has to take place in a tripartite consultation," she stated, while referring to the November 2006 Final Declaration, which clearly states that Curaçao and St. Maarten will have a joint Central Bank. Curaçao and St. Maarten have indicated that they want their own Central Bank.

Spies is "very concerned" about the developments surrounding the CBCS. She has taken note of the negative reports in the media about the CBCS, especially its President Emsley Tromp, and the alleged failing in executing its supervisory task. "I will keep a keen eye on the developments and when it is befitting, I will keep expressing my concerns to both governments (of Curaçao and St. Maarten, ed.)."

In Spies' opinion, the Central Bank must be able to function independently, without interference of members of government, government institutes or government owned companies. "It is evident that the Central Bank has to be able to assume an independent position."

The Minister stated that the Bank Charter forbids the Bank's Management Board or the Board of Directors to ask or accept directions from institutes or organs of Curaçao and St. Maarten or from the governments of these two countries.

On the other hand, it is also important that there is a good cooperation and working relation. "The financial economic vulnerability of both small countries, the image that both countries have an international financial world and the vulnerable government budget demand good teamwork between the Central Bank and the governments."

According to Spies, it is important for the monetary and economic stability of both countries to respect the Bank's independent position. She said she would keep this issue on the agenda in her talks with the governments of Curaçao and St. Maarten.

Spies mentioned the initiative of St. Maarten's Minister of Finance Hiro Shigemoto to organise a meeting with his Curaçao colleague and CBCS' Management Board on neutral ground on April 16.

"The Minister of Finance of St. Maarten has indicated that in his opinion the back and forth accusations are damaging to the functioning of the CBCS and that its President should be given the opportunity to defend himself," she stated. She promised to keep the Second Chamber informed about the outcome of the April 16 meeting, during which an independent international mediator might be deployed.

Spies noted that the Board of Directors was now complete with the appointment by the Court of Robert Pietersz in early April. The Board should be meeting soon to take a number of "crucial" decisions. The annual account of the former Central Bank, the Bank of the Netherlands Antilles, needs approval, the investment policy has to be set and the 2012 budget of the CBCS has to be authorised.

Source: http://www.thedailyherald.com/islands/1-islands-news/27064-no-split-up-cbcs-without-the-hague-.html

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