St. Maarten’s Budget ordinance signed into law

POSTED: 07/11/11 12:56 PM

St. Maarten – Governor Eugene Holiday and Finance Minister Hiro Shigemoto signed the country’s 2011 budget into law on July 7, 2011. The 420.9 million guilder budget is 23.526 million less than the one that was approved by Parliament on December 23, 2010. The amount at that time was 444.4 million guilders.

Out of the 420 million guilder budget, close to 120 million guilders (119.435.771) will be capital investments. Government will be allowed to borrow 117.3 million guilders for 2011.

According to the Minister of Finance, the Committee on Financial Supervision (Cft) was waiting on two developments in order to finalize the handling and approval of any loan requests from the Government of St. Maarten. The first condition was that the 2011 country budget had to be passed in Parliament and signed into law. The second condition was that the SOAB had to present a report about the collective sector of St. Maarten as well as the calculation of the interest norm for Government and its collective sector. The collective sector includes the government, the Foundation Upkeep Sports Facilities, Foundation of Government Buildings, the SZV and two other foundations.

The interest norm for 2011 has been calculated at approximately 27.9 million guilders, of which the collective sector has interest costs to date totalling 12.9 million guilders which, in essence, means that there is room for 15 million guilders in interest costs within the collective sector.

“The SOAB finalized its report on July 4, 2011, and this should have been directly sent to the Cft. The Government of St. Maarten is now waiting to hear how much longer it will take for the Cft to finalize the loan requests that Government has submitted for approval. There must be clear rules and regulations between all members of the collective sector and government (Minister of Finance). Any borrowing of monies will require the prior approval of the Minister of Finance and this matter will be addressed by my person with the various foundations and entities which fall under the collective sector of St. Maarten,” Shigemoto said on Sunday.

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