Government reports Cg 46 million liquidity, expects cushion to fall to Cg 18.5 million by September

GREAT BAY--Government had Cg 46 million in available liquidity spread across eight bank accounts as of August 12, 2026, but expects that position to decline to approximately Cg 18.5 million by the start of September after remaining income and expenses for August are taken into account.

The figures were provided to Parliament as part of government’s responses to questions submitted by Members of Parliament in preparation for the 2026 budget debate.

Government expects to collect approximately Cg 20 million in additional income during the remainder of August. At the same time, expenditures for the month are projected at approximately Cg 47.5 million.

Those expenses include waste management, interest payments, salaries, OZR, subsidies, financial aid, tax returns, rent and payments to other creditors. Based on the Cg 46 million liquidity position recorded on August 12, together with projected remaining revenue and expenses, government expects to enter September with approximately Cg 18.5 million in liquidity.

Government has also projected year-end free liquidity of approximately Cg 5 million, underscoring the relatively limited financial cushion expected to remain at the end of 2026. In its response to Parliament, government disclosed that the Ministry of Finance currently does not have an overview available of all outstanding payments.

Payments are initiated by the individual ministries and subsequently forwarded to the Ministry of Finance in the form of an advice to pay. However, Finance explained that it does not maintain a separate record or file showing the total value of those outstanding payments.

Government said this type of information should become available following implementation of the new financial system. Despite that limitation, government reported that the 90-day payment period for financial commitments related to goods and services rendered in 2026 is being met.

Questions were also raised about the country’s debt position, with government debt now exceeding Cg 1 billion, and what level of debt relative to the size of the economy should be considered sustainable. Budget 2026 does not establish a specific maximum sustainable debt-to-GDP ratio.

According to government, the budget calculated the 2026 debt-to-GDP ratio at approximately 31.3% when using International Monetary Fund GDP estimates and approximately 40.9% based on estimates from the Central Bank of Curaçao and St. Maarten. More recent CBCS projections place the 2026 ratio at approximately 42.7%.

Government said neither the IMF nor CBCS currently considers St. Maarten’s baseline debt trajectory unsustainable. Both institutions, however, recognize the country’s exposure to external shocks, particularly natural disasters.

Parliament also questioned how long government could continue operating following a major hurricane before emergency financing would become necessary, particularly with projected free liquidity of only approximately Cg 5 million at year-end.

Government said Budget 2026 does not provide sufficient information to determine how long operations could continue after a major hurricane before additional financing would be required.

The budget does, however, contain several allocations for disaster preparedness, emergency response and climate resilience.

These include Cg 2.9 million for disaster and calamity response, Cg 200,000 for National Disaster Management Organization staffing and training, Cg 250,000 for the Climate Resilience Program, Cg 144,000 for emergency generators and Cg 902,000 for specialized disaster-response equipment and supplies.

An additional Cg 68,000 has been allocated under the Ministry of Public Health, Social Development and Labor for ESF-7 disaster preparedness training and equipment.

Government also pointed to the SPEAR project, which provides for establishment of a Disaster Reserve Fund intended to strengthen the country’s financial capacity to respond more rapidly to future disasters.

Government identified structural revenue insufficiency, delays in structural reforms, capacity constraints and insufficient transparency and reporting by government-owned companies among the principal risks facing implementation of Budget 2026.

Measures identified to address those risks include revenue reforms, institutional capacity building, implementation of structural reforms and stronger financial oversight of government-owned companies.

The liquidity figures are expected to form part of Parliament’s examination of Budget 2026, particularly as MPs consider government’s ability to meet regular obligations while maintaining sufficient reserves to respond to unexpected economic or natural shocks.

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