Published On: Wed, Aug 28th, 2019

Government debt of NAf 91 million to SZV one step closer to resolve

SZV MinFin Signing Letter Of Intent LOI Debt - 28082019

PHILIPSBURG — Director of SZV Glen A. Carty and Minister of Finance Perry Geerlings signed a letter of intent on Friday August 23rd regarding the outstanding social & health insurances premiums owed by Government to SZV.

The letter of intent outlines a structured approach to address the repayment of the outstanding amount of approximately 91 million guilders, accumulated over many years by the Sint Maarten Government. Both Carty and Geerlings are eager to start this new chapter and permanently resolve the financial backlog.

“While we have always had a good understanding with Government regarding the repayment of the debt, we are now one step closer to a structural resolve. This agreement is good for the country, for the people of Sint Maarten and their social & health insurances.” – Glen A. Carty, Director SZV

Government’s outstanding to SZV primarily includes premium contributions for its civil servants and ‘PP’ card holders, premium contributions for the unemployed under the sickness insurance ordinance and division of assets outstanding. As per December 31st, 2018 the outstanding amount was recorded to be NAf 91.622.287,-. While corrections may be applicable, both SZV and Government will commence with the necessary planning to introduce feasible agreements to Government’s payment plan.

“The Government of Sint Maarten intends to pay off its debts to SZV, within reasonable means. We have been working on this for months and it was a complicated exercise. One of the major contributors to the debt has been our liquidity issue due to the annual deficits in our budget. The 2017 hurricanes are also contributors to the debt. The Government of Sint Maarten is close to complying with the Kingdom instruction of 2015, to settle the outstanding arrears. This letter of intent allows us to move forward based on realistic agreements that Government can meet.” – Minister Perry Geerlings

Photo caption: L to R: Minister Perry Geerlings and Mr. Glen A. Carty during signing of letter of intent on Friday August 23rd, 2019. Photo provided by SZV.