In a press conference on Tuesday, October 10, 2023, the Minister President of Aruba informed Aruba’s people on the first signed agreement for COVID bail from the Netherlands in a decade rate of 6.9%. Through a press release, ATIA indicates that this bail will cost Aruba Afl. 109 million guilders in 2024 and expressed some concerns.
The ATIA analysis is partially correct, but the information presented is not complete. In order to avoid a public debate in the coming days in which information is lacking, Minister Maduro of Finance brings the correct information to the attention of the local authorities regarding the costs of the COVID lockdown that the Netherlands is bringing to the people of Aruba.
The following is some information that ATIA has failed to properly inform the community.
It is information that could easily have been extracted from ATIA’s own analysis:
• It is correct that the first payment on the COVID debt will be AFL 109 million florins, but of this AFL 46 million florins is not a cost. This is a payment to reduce the debt and is not a cost. The Cost was made during COVID by lending money to help, among others, the members of the their own ATIA so that they can survive the pandemic. That’s when they made the cost. The government The cost was paid by bail and today the Netherlands demanded that we start paying the bail back.
• The first payment has an interest cost of AFL 63 million florins. In the linear system with Aruba has chosen, this cost will decrease annually and in a period of 20 years this will result in a The total interest is AFL 137 million less compared to the annuity system that the Netherlands required. What Aruba will pay 21% less in interest is in the calculation made by ATIA, but unfortunately ATIA has It’s hard not to mention this important information.
• To make a complete presentation ATIA could mention that not every year Aruba will need pay the AFL 109 million in the Netherlands, because in the linear system that Aruba has chosen, the cost of interest It’s going down faster.
• ATIA failed to explain that the agreement between Aruba and the Netherlands of October 10th, is not The final agreement and the 6.9% interest rate is not final either.
• In addition, in the event that the Netherlands refuses to lower the interest, Aruba has managed to include in the contract a clause that allows us to pay back at any time. That gives Aruba all the space for 20 years to get out of this agreement.
• What was the sign of the Passover? ATIA knows the answer to that, too. The date is October 10, 2023. It was the last day to sign to avoid a default and 6.9% was the only interest available. on the dates. There was no interest of 3.1%, nor 5.1% available on that date, for that reason. The places ATIA proposes are a false-choice
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• For a balanced presentation it would be good for ATIA to explain what the conditions are with the Netherlands This was done so that Aruba could one day qualify for a lower interest rate. It’s good to hear if ATIA It is believed that Aruba could have fulfilled all the conditions before the October 10, 2023 deadline.
• For example, it is good for ATIA to explain why in their opinion it is a good idea for Aruba to surrender and cancel their right to settle a future discharge of the COVID debt, because this is It’s just one of the conditions that the Netherlands put for Aruba to get a lower interest rate.
• The ATIA analysis also lacked a study of the scenario in which Aruba is left without sign. Compare the current agreement with the impact of a default in case Aruba does not sign. Lo It is good for ATIA to share with businesses in particular and the public in general the cost of such a default. to all merchants, investors and residents of Aruba.
If ATIA’s intention is to properly inform the community, then ATIA should provide full information and also give its opinion on what the cost would be if Aruba were to remain without an agreement with the Netherlands, and be in a default situation.
Clearly, it is not in Aruba’s interest to cause distress and discontent by sharing incomplete information about a negotiation that is not yet clear. Aruba’s team continues to make efforts to achieve a lower interest, but with fair conditions for the citizens of Aruba. ATIA as trade unions and stakeholders will receive all information when it is clear to them
and that they receive an invitation to a meeting as prescribed.