St. Maarten received first part Central Bank profits

POSTED: 06/22/11 12:04 PM

St. Maarten – Concerns over a post of 25 million guilders ($14 million) in projected revenue in St. Maarten’s 2011 budget seem to be unjustified. The revenue is listed as dividend from the Central Bank. The Board for Financial Supervision Cft said in answer to questions from this newspaper that the post refers to license fees and operational profits.

“Based on the information that is currently available, this amount is realistic in the opinion of the Cft,” spokeswoman Jefka Martha-Alberto wrote in an email to Today. “This amount will be paid in quarterly installments to St. Maarten and to Curacao. As far as the Cft knows, the first quarterly installment has already been paid.”

Based on article 40 of the Central Bank Charter the annual profit is divided between Curacao and St. Maarten based on the individual countries gross domestic product and their number of inhabitants, a technical and rather complicated formula that is also used to determine each country’s share in the bank’s equity capital.

The bank’s equity capital is 30 million Caribbean guilders (currently still Antillean guilders), or $16.75 million. This money is parked in a so-called reserve fund, designed to cover potential losses on the equity capital. When at any given moment the reserve-fund dips below the 30 million and there is no possibility to supplement it from other reserves, St. Maarten and Curacao have to make up for the difference based on the distributive code

 

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