DP wants dollarization and new Central Bank building

POSTED: 07/22/14 1:54 PM

St. Maarten – The Democratic Party is a proponent of dollarization and the construction of a new building for the Central Bank in St. Maarten, the party states in a press release that highlights its stance on the monetary union with Curacao and on local government-owned companies.

It is the first time that the DP takes a position on the choice between a joint Central Bank and a future without one, whereby St. Maarten would dollarize. The discussion about dollarization goes back to at least 2006, but successive governments refrained from taking a decision against the background of the discussions about autonomy for St. Maarten and Curacao. Part of those discussions was the establishment of a joint Central Bank.

That bank became a reality, but it has never really worked well, due to the differences between the board members from the two countries and because of political infighting in Curacao.

The DP states in its press release that it accepted the monetary union “on the basis of parity” but that parity soon proved to be non-existent. “Having the union function is such a fashion has proven elusive at best,” the DP states diplomatically. The release furthermore states that cooperation has improved over the past couple of months. “While both governments are desirous of making the best of the monetary union it is clear that political views have changed.”

These “changed political views” are now the reason for the DP to declare itself a proponent of dollarization, but apparently the party is not ready to give up the Central Bank. “The DP will work with the Government of Curacao to ensure immediate upgrading of the Central Bank branch on St. Maarten in the areas of training, human resources and a new bank building.”

The Democratic Party furthermore wants government-owned companies to focus on their core business. “The government should ensure more transparency within these companies,” the press release states.

The DP also wants more cooperation between government-owned companies in areas like automation, finances and purchasing. The party proposes the establishment of “an overarching (holding) company that “could offer a beneficial relationship between companies and facilitate investments.”


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