Willemstad/Philipsburg – The COVID-19 liquidity support loans issued to Curaçao and Sint Maarten during the pandemic will have to be refinanced by October 2023. “These loans are significant and amount to approximately 22% of the GDP of Curaçao and 11% of the GDP of Sint Maarten. Under the current circumstances, both countries will have to reach an agreement with the Netherlands on the refinancing,” cautioned President of the Centrale Bank van Curaçao en Sint Maarten (CBCS) Richard Doornbosch in the Bank’s March Economic Bulletin. “In an environment of increasing interest rates in the international financial markets, having a public debt management strategy in place will be crucial to manage financing costs,” Doornbosch added. “It is currently assumed that both countries will be able to refinance the maturing loans. However, if no agreement is reached with the Netherlands on the refinancing or if the refinancing conditions are less favorable, this could worsen the public finances and affect the countries’ economic prospects,” the CBCS president further cautioned.