PHILIPSBURG:---The Minister of Finance Ardwell Irion has requested the CBCS to suspend (cancel) the auction (bond). Sint Maarten is currently in discussions with the Netherlands regarding the refinancing of a loan, which is scheduled to mature on October 21st, 2020. Sint Maarten has opted to accept the proposal of the Netherlands as outlined in their letter of October 16th, 2020, which will result in the postponement of the maturity date and avoid a technical default. During the coming four weeks we will continue to work on the completion of the process to meet the conditions of the second tranche liquidity support, which can then lead to further discussions on the third tranche liquidity support as well as long-term solutions for expiring loans.
While it has always been the Minister of Finance' intention to deal with both the maturing loan as well as floating the bond to fund various social programs including the SSRP. It can only be assumed that the suspension of the bond by the Minster is of a direct result of the misrepresentation by CFT on their interpretation of the RFT. An interpretation that the CFT did not contact the Minister of Finance to brief him on but rather sent out a press release to scare away willing participants in the floating of the bond. It is disheartening to know the lengths in which the CFT will attempt to prevent the government from seeking alternative measures whilst negotiations between Kingdom Partners are ongoing.
On Monday, October 19th State Secretary Knops urged the Minister to suspend the bond to continue discussions for the next 4 weeks, finalize with CFT the second tranche conditions, and suspend the bond or he will Blackmail St. Maarten into default of the maturing bond that was issued in 2010. Knops and CFT are thwarting all efforts of St. Maarten. If St. Maarten complies he will then postpone redemption and refinance the bond while discussing the third Tranche.
Centrale Bank van Curaçao en Sint Maarten announces the cancellation of a bond on behalf of the government of the Country of Sint Maarten
Willemstad/Philipsburg - The Centrale Bank van Curaçao en Sint Maarten announces the cancellation of the Sint Maarten bond October 21, 2020 – 2045. The auction of this bond is cancelled by the
Minister of Finance of Sint Maarten in order to enable the Country to continue in negotiations
with the Netherlands after receipt of a recent proposal concerning the maturing government bond October 21, 2010 - 2020.
Willemstad, October 20, 2020
CENTRALE BANK VAN CURAÇAO EN SINT MAARTEN
