step out of the monetary union out of concerns about possible devaluation due to current account imbalances in Curaçao. More recently, a study on the costs and benefits of dollarizing vs. continuing with the current exchange rate regime has been included in the reform country package ( landspakket ) agreed with the Netherlands. Real GDP Index (2010 = 100) Sources: The Curacao and Sint Maarten authorities, the IMF World Economic Outlook, and IMF staff calculations. Note: The shaded area represents the 10th-90th percentile range in a sample of 15 Caribbean
DISCUSSIONS March 30, 2020 COVID-19 . The staff report was prepared by a staff team of the IMF for the Executive Board’s consideration on March 18, 2020. The staff report reflects discussions with the Kingdom of the Netherlands—Curaçao and Sint Maarten authorities in November 2019 and is based on the information available as of March 3, 2020. It focuses on Curaçao and Sint Maarten’s near and medium-term challenges and policy priorities and was prepared before COVID-19 became a global pandemic and resulted in unprecedented strains in global trade, commodity and
FOR IMMEDIATE RELEASE WASHINGTON, DC – April 1, 2020 the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation 1 with Curaçao and Sint Maarten, two autonomous constituent countries within the Kingdom of the Netherlands, and considered and endorsed the staff appraisal without a meeting.2 These consultation discussions form part of the Article IV consultation with the Kingdom of the Netherlands. The analysis below reflects discussions with the Kingdom of the Netherlands—Curaçao and Sint Maarten authorities in
central government and social security funds (SVB). 3/ Includes teacher salaries. 4/ Mostly changes in deposits. 5/ The denominator is the average of total revenue in the previous three years. 6/ Defined as balance sheet liabilities of the central government except equities. Includes central government liabilities to the social security funds. Figure 3. Curaçao and Sint Maarten: Fiscal Developments 1/ Sources: Curaçao and Sint Maarten authorities; IMF WEO database, and IMF staff estimates. 1/ Overall balance excluding Trust Fund
2019 Article IV Consultation-Press Release and Staff Report; and Statement by the Executive Director for the Kingdom of the Netherlands-Curacao and Sint Maarten
/ Payroll subsidies to the private sector for 2020 and 21. 4/ Mostly changes in deposits. 5/ Consolidated table including the budgetary central government and social security funds (SVB). 6/ The denominator is the average of total revenue in the previous three years. 7/ Defined as balance sheet liabilities of the central government except equities. Includes central government liabilities to the social security funds. Figure 4. Curaçao and Sint Maarten: Fiscal Developments Sources: Curaçao and Sint Maarten authorities; IMF
) rate. A concrete recommendation about revenues and rates, however, is not possible, due to a lack of relevant taxpayer data. That said, the PT rate of 34.5 percent is quite high by international standards, and it is recommended that the rate be reduced as part of a package of reforms including base broadening. The mission sees two main tax instruments that could help the Sint Maarten authorities to increase revenue in the short to medium term: enforcement of the existing recurrent property tax and introduction of taxation on gambling . A recurrent property tax is a