The proposal for a Kingdom Act Sustainable Public Finances Aruba (HOFA) is
heading to the Council of State of the Kingdom for an opinion. The Council of
Ministers of the Kingdom consented to this today. Thus, after conclusion of the
consultation, another step has been taken in the realisation of this joint
legislative proposal of Aruba and the Netherlands.
The Consensus Kingdom Act (HOFA) establishes the guidelines for the realisation
and preservation of healthy government finances of Aruba. A responsible budget and
good financial management contribute to this. The Consensus Kingdom Act goes
hand in hand with the 'National Ordinance Safeguarding Sustainable Public
Finances' (Lwho). This is legislation of the country Aruba itself. The standards in the
Kingdom Act and the National Ordinance are based on recommendations of the
International Monetary Fund.
Lower interest burden
Once the Act has come into force, Aruba can rely on a borrowing facility with the
Netherlands. For instance, the country can borrow money for making public
investments at the same favourable conditions of the Netherlands. In addition, the
Netherlands is willing to refinance a part of the Aruban loans on the American capital
market. It was also agreed that Aruba is going to pay a lower interest rate on the loan
that it took out with the Netherlands during the Covid-19 pandemic. All these
arrangements ensure that the interest burden of Aruba is lowered. The interest saved
by Aruba can be used for investments in the country itself, e.g. in education, health,
and economy.
State Secretary of the Interior and Kingdom Relations Eric van der Burg: "Another
important step has been taken towards healthy public finances for Aruba. The
Netherlands and Aruba have collectively been working on the legislative proposal
since mid-2024 in order that the Aruban government can also make more
investments in the longer term that benefit the residents and the economy. Thus,
sustainable public finances, supervision, and the borrowing facility are, just as in the
case of Curacao and St. Maarten, regulated in a Kingdom Act. I am glad that we are
all pulling together on this."
Prime Minister of Aruba Mike Eman: “This is an important moment of calm for Aruba
and the Kingdom. Especially in a world that is becoming increasingly turbulent and
unpredictable, it is crucial that trust, stability, and cooperation exist within the
Kingdom. Through cooperation, we can better meet the challenges of our time and
work on investments that serve the Common Good of Aruba and the Kingdom.”
Consensus Kingdom Act Sustainable Public Finances Aruba another step closer
