Cft puts St. Maarten debt at Xcg 1.44 billion, GEBE, Telem and PSS highest-risk entities

GREAT BAY--The College financieel toezicht (Cft) has raised concern over St. Maarten’s debt position and the financial condition of three government-related entities, identifying GEBE, Telem and Postal Services St. Maarten (PSS) as the participations with the highest risk in its review of the country’s fourth execution report for 2025. According to the Cft, St. Maarten’s government debt stood at XCG 1.4395 billion at the end of 2025, resulting in a debt ratio of 45 percent.

The findings were outlined in the Cft’s March 27, 2026 response to the fourth execution report, in which the council said the risks tied to key government-linked companies deserve attention within the broader context of St. Maarten’s public finances. While the country recorded a preliminary surplus of XCG 21 million on the ordinary service in 2025 and remains, for now, in compliance with the central budget norm, the council made clear that important financial vulnerabilities remain.

Among the entities highlighted, GEBE was cited for a lack of financial reporting. The Cft stated that GEBE has not produced annual financial statements for 2023, 2024 and 2025. The absence of those statements limits clear insight into the company’s financial position and raises concern about transparency and oversight at one of the country’s most important government-related entities.

Telem was identified as facing continued operating and financing pressure. According to the Cft, the company has been posting losses year after year and is experiencing difficulty meeting its obligations to lenders. The council further noted that Telem has requested a government guarantee, but that such a guarantee has not been granted.

PSS was flagged for its weak balance sheet position. The Cft reported that the company had negative equity of XCG 6 million at the end of 2024 and is expected to remain in negative territory at XCG 5 million by the end of 2025. Although that reflects a slight projected improvement, the company is still expected to remain financially impaired.

The Cft’s remarks place the spotlight on more than just central government debt. They also underscore the fiscal relevance of state-linked entities whose financial weakness, reporting gaps, or financing problems can add pressure within an already constrained public finance environment. With government debt at XCG 1.4395 billion and a debt ratio of 45 percent, the condition of major public entities carries added significance for the country’s overall financial stability.

The council’s concerns about the three companies were included in a wider assessment of St. Maarten’s financial management. In the same report, the Cft expressed serious concern about the country’s liquidity position, noting that the projected free liquidity balance for the end of 2026 is just XCG 5 million. It also pointed to structural delays in budget adoption and execution, as well as the continued absence of collective sector reports needed to assess compliance with the interest burden norm.

The Cft said these underlying issues continue to affect the quality of financial management and the country’s ability to maintain firm control over public finances. Against that backdrop, the council’s identification of GEBE, Telem and PSS as the highest-risk participations adds another layer to ongoing concerns about financial resilience in the public sector.

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