Central Bank posts record profits

GREAT BAY--The Centrale Bank van Curaçao en Sint Maarten (CBCS) has published its 2024 Annual Report, revealing a record net profit of Cg 46.6 million and highlighting a year of major progress in financial supervision, regulatory reform, and monetary stability across the monetary union. The report also details specific developments affecting Sint Maarten, including economic performance, fiscal policy shifts, and CBCS-led initiatives aimed at safeguarding depositors and modernizing the financial system.

Despite global economic turbulence in 2024, the CBCS attributes its financial success to a sharp rise in net interest income, up by over Cg 33 million, and investment returns, which increased by nearly Cg 18 million. These gains were driven in part by the reinvestment of gold reserves into long-term U.S. government bonds. The value of gold rebounded later in the year, helping restore reserve levels while improving overall returns.

The Bank’s leadership, comprised of President Richard Doornbosch and Executive Directors Leila Matroos-Lasten and Jose Jardim, also reported major strides in achieving core mandates. These include reinforcing financial supervision, enhancing monetary policy frameworks, preparing for the Caribbean guilder launch, and concluding critical resolution actions related to Ennia and Girobank.

𝐒𝐢𝐧𝐭 𝐌𝐚𝐚𝐫𝐭𝐞𝐧’𝐬 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐒𝐧𝐚𝐩𝐬𝐡𝐨𝐭

Sint Maarten's real GDP growth slowed slightly to 3.5% in 2024, compared to 3.8% in 2023, reflecting the completion of major public infrastructure projects. Inflation rose from 2.1% to 3.6%, driven in part by a surge in imports that outpaced export growth, despite increases in tourism activity.

The CBCS projects Sint Maarten’s economy will expand by 2.6% in 2025, buoyed by private investment in utilities and harbor infrastructure and major public projects, including a new prison and mental health facility. However, the island’s net foreign demand is expected to decline further due to continued import growth.

Fiscal policy remains a concern. The country posted a current budget deficit of 0.2% in 2024, slipping from a 0.6% surplus in 2023. This was largely due to rising expenditures, particularly on wages and public services, which outpaced revenue. Still, the CBCS expects Sint Maarten to recover to a 0.3% surplus in 2025 on the back of improved tax revenue collection. Public debt also rose, increasing to 44.2% of GDP due to a NAf 132 million bond issuance. This ratio is projected to decline slightly to 43.9% in 2025.

𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐎𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭

The CBCS continues to roll out its multi-year Risk-Based Supervision (RBS) methodology, now covering 400 financial institutions across Curaçao and Sint Maarten. In 2024, the focus shifted to lower-significance institutions. Simultaneously, ongoing assessments were updated for higher-tier institutions, including compliance with anti-money-laundering (AML) and anti-terror financing standards.

Sint Maarten received particular focus in 2024. The CBCS conducted seven examinations on the island, three of which were follow-ups, and conducted thematic reviews assessing AML compliance using the Systematic AML Risk Assessment (SARA) framework.

The CBCS also launched its IT Security Strategy 2025–2027, emphasizing cybersecurity and business continuity planning. Institutions were tested on their ability to respond to cyber threats, and training was provided to strengthen internal controls, especially in light of rising digital threats across the sector.

𝐂𝐚𝐫𝐢𝐛𝐛𝐞𝐚𝐧 𝐆𝐮𝐢𝐥𝐝𝐞𝐫 𝐑𝐨𝐥𝐥𝐨𝐮𝐭

Preparations for the introduction of the Caribbean guilder continued throughout 2024, with the new currency officially set to replace the Netherlands-Antillean guilder on March 31, 2025. The CBCS finalized the design of the new banknotes and coins and began stakeholder engagement and public awareness campaigns in both Curaçao and Sint Maarten.

A key motivation for the new currency, according to the CBCS, is the end of production for the outdated Netherlands-Antillean guilder and the comparable costs involved in updating it versus introducing a new currency. The guilder will maintain its peg to the U.S. dollar at a fixed rate of Cg 1.79 per USD.

In December 2024, commercial banks in Sint Maarten completed readiness testing for the new currency’s rollout, including updates to electronic payment systems. Public education efforts included a mobile app and extensive media engagement to ensure smooth adoption.

𝐄𝐧𝐧𝐢𝐚 𝐚𝐧𝐝 𝐌𝐮𝐥𝐥𝐞𝐭 𝐁𝐚𝐲 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬

One of the year’s most significant milestones was the finalization of a resolution plan for Ennia, which includes the creation of a solvent and independently functioning insurance group operating under a new structure. The governments of Curaçao and Sint Maarten, along with CBCS, endorsed the Outline Agreement in December 2023 and completed its implementation by the end of 2024.

In Sint Maarten, the long-dormant Mullet Bay property, considered a key asset in the Ennia portfolio, is now under new management after CBCS removed Hushang Ansary as director. The new board is exploring sale and development options for the property, which has languished unused for decades. Legal proceedings in the U.S. related to Ennia’s former directors are expected to resume in 2025 following a court-ordered appraisal of the property.

𝐃𝐞𝐩𝐨𝐬𝐢𝐭 𝐆𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐒𝐜𝐡𝐞𝐦𝐞 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐈𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧

The CBCS expects to operationalize the Deposit Guarantee Scheme (DGS) for both Curaçao and Sint Maarten by mid-2025. The law has been approved by the Minister of Finance of Curaçao and is awaiting finalization. The DGS aims to protect depositors and bring the banking sector in line with international norms.

The Bank’s Innovation Office, launched in late 2024, is another step toward fostering financial inclusion. The office is designed to help entrepreneurs introduce innovative financial services and navigate regulatory requirements. Parallel efforts to develop new payments legislation, including oversight for virtual asset service providers and payment systems, are also underway, with some laws already passed and others pending parliamentary approval.

𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐚𝐧𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞𝐬

Recognizing the growing risks posed by climate change, the CBCS has integrated climate risk assessments into its supervisory agenda. It conducted a baseline climate risk survey in 2024 and became a member of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The CBCS also co-hosted the annual Curaçao Climate Change Platform and was appointed chair of the Caribbean Group of Banking Supervisors’ technical working group on climate risk.

The Financial Stability Report released in early 2024 was hailed by regional peers at a CARTAC seminar as a model for the Caribbean. Benchmark reports for local commercial banks were also updated to enhance transparency.

A Strategic Financial Sector Review is underway in collaboration with Nyenrode Business University, with results expected in 2025. The goal is to define a more resilient and inclusive financial future for both Curaçao and Sint Maarten.

𝐋𝐨𝐨𝐤𝐢𝐧𝐠 𝐀𝐡𝐞𝐚𝐝

As the CBCS looks to 2025, its focus will remain on ensuring a stable exchange rate, enhancing financial resilience, and introducing systems that support inclusive growth. Despite mounting global uncertainty and the risk of trade-related inflationary pressures from the U.S., the CBCS continues to position itself as a forward-looking institution capable of weathering change while safeguarding the monetary union.

For residents of Sint Maarten, this year’s developments, from the Caribbean guilder to oversight of dormant assets like Mullet Bay, signal a more assertive and engaged central bank, one increasingly involved not only in monetary policy but also in broader economic development and institutional reform.

‍