An interview with MinFec

NoticiaCla conducted an interview with the Minister of Finance and Economic Affairs in which she confirmed GOA is offering Awg and USD bearer bonds – within the Kingdom, outside Aruba entities and individuals may also participate.

GOA is attempting to raise Awg 60 Million and USD 60 Million, in multiples of Awg 1,000, paying 5.3% annually, for 7 years. Hurry up, that offer expires Sept 27th, after that funds raised would be available for GOA to spend, as it sees fit, no one watching over its shoulders.

Those millions will get burnt up, consumed before December, by operational expenses. We are not buying anything new with this money. But we will have to cough it up when paying it back. This decision to issue junk bonds, without any controls or conditions, will burden us further, and be added to the national debt.

Compliments to Tito Lacle, who endured the avalanche of words and repetitions, he even helped MinFec figure out the Buraco, the gap, the deficit: If we get Awg 204M for three months, then a two-month deficit would be Awg 204M:3×2 = Awg 136M. Thank-you, Tito.

That famous Buraco, gap, deficit, started the whole hoopla, where GOA claimed the Dutch government left it hanging, which ‘forced’ the island to seek financing in the local market – read: As a business opportunity for the local banks.

In yesterday’s press conference the Dutch secretary of state reiterated: All you had to do is ask, through the proper channels, and your wish will be granted.

So, why didn’t MinFec ask? Aren’t they talking to each other? She insists she did not know, he did not say, how could she tell she could ask for more?! Do you believe that?

It is also very upsetting to hear how MinFec vilifies the Dutch – sure it’s zero percent interest now, but two years down the road, conditions will change and we should expect the worse.

How can she say that?

Is that a valid argument?

I will not eat breakfast now, because I will be hungry again, in two hours?

She also insinuates the Dutch abuse the situation, and threaten the island’s autonomy.  What autonomy? GOA’s license to spend our money without recourse, while the Dutch are actually willing to invest in our growth?

As expected, the MinFec’s Pre-K-teacher tone was more sing-songy than ever, as she was talking to her audience of 3 year olds.

She must have repeated half a dozen times that she will not let the country ‘kibra,’ as if it’s under her control.

A country doesn’t ‘Kibra,’ it defaults!

Meaning, it fails to honor some or all of its debt obligations, something not uncommon, countries do default, when their national economies weaken, says Wikipedia, or when they issue bond denominated in a foreign currency, or a political unwillingness to service debts, arises.

So please find a word in Papiamento that would mean default, and another that would mean deficit, and use the proper terminology to describe the economic threats, you’re not only talking to three-year-olds, there are some intelligent adults in your audience.     



Share on:

September 18, 2020
Rona Coster