Thank you very much!
To the Government, Parliament and the Dutch community
Via his Excellency the Governor of Aruba
Aruba September, 28th, 2020
Appreciated Council of Ministers, Members of the House of Representatives, and the Dutch community.
In the past 6 months, Aruba has been confronted with the consequences of the Covid19 pandemic, and as a result of the lockdown, tourism, the island’s only economic pillar, suffered a fatal collapse that reduced our economy by approximately 30%. Many people were at risk of losing their jobs, but fortunately, as partners in the kingdom of the Netherlands, Aruba was lucky to receive from the Netherlands, directly from the start of the pandemic, unconditional humanitarian aid and logistical support, especially in the area of public health.
Loans
Moreover, the Netherlands secured a no-interest loan for the island, as budgetary support, which allowed Aruba to cover its obligations to public employees and maintain important services. This also helped subsidize businesses, allowing them to hold on to their employees, as much as possible. This way SVB and AZV were able to meet their numerous obligations in benefit of the community. Without this humanitarian support in health and other areas, Aruba would have succumbed to its challenges, a long time ago.
Gifted Investments
Additionally, the Netherlands committed to help the CAS islands, Curacao, Aruba & Sint Maarten, in the form of investments in education and healthcare, to strengthen the economy’s resistance, creating sustainable public finances, and instituting much-needed reforms in all areas of government. This mostly concerned necessary investments which our own government failed to make during the last decades! The total amount that the Netherlands was prepared to give the three islands, amounted to 1 billion florins.
Long Term
In observation of the pandemic, we realize that aid will be required for a long time, possibly through the next 2 to 3 years, from 2020, well into 2022, and that budgetary aid will amount to a minimum of 2 billion florins, in addition to investments, which the Dutch government pledged to make. Aruba could never obtain this kind of financing on its own in the international market. Thus it is appropriate and timely, for the community of Aruba to thank the government of the Netherlands, its parliament and its people, for this immensely appreciated, much-needed helping hand, extended in friendship and goodwill, in these difficult times which are also difficult in the Netherlands. The Aruban community appreciates this very much indeed!
Supervision
To guarantee the efficient and effective use of all the money the Netherlands has loaned Aruba and will be loaning and donating to the island in the upcoming years, the Dutch will institute a reform and supervision entity, similar to ZBO, in the Netherlands. This Caribbean Organ of Reform, will guide Aruba on the needed road to extensive reform.
Incidentally, Aruba’s government itself admitted in the Reformation Note, June 15th, 2020, that reform is inevitable and unavoidable.
In the past, CAFT supervision and pressure from the Netherlands succeeded in lowering the budget deficit from more than Afl. 400 million in 2014, to more or less Afl. 0 in 2019. That means an average yearly deficit reduction of Afl. 80 million. This is very impressive against the Aruban political, traditional landscape! This shows that the Aruban government is perhaps ready for a guiding hand. Therefor we are convinced that, based on the Dutch conditions for new loans, the Aruba government will infuse more content, into its previously empty promises, to take concrete action.
Necessary Reform
Taking into consideration the disastrous financial situation of Aruba as a result of three decades of structural mismanagement, we agree that ‘government reform’ should be a first priority. We hope the non-negotiable terms of the Dutch aid agreement will bring many necessary changes, and drastic improvement in governance.
That’s why we also say: Thank you very much in advance!
Sincerely,
Signed
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