Finance Minister Geoffrey Wever announced that Aruba will pay Afl. 294 million in interest on existing loans in 2025. In addition, the country will make Afl. 595 million in principal repayments (aflossing) on both local and international debt.
Under the financial supervision framework, Aruba’s public debt is targeted to reach 50% of GDP by 2040. For 2025, the debt level is projected at about 67% of GDP. Meeting interest and repayment obligations depends on the national budget and Parliament’s approval.
The government’s financing need (financieringsbehoefte) is determined by the required repayments and the statutory 1% surplus target. In the first approved 2025 budget amendment, with a projected surplus of Afl. 87.5 million and Afl. 595 million in repayments, the financing need is Afl. 508 million. Of this, Afl. 165 million has already been raised on the local market. To borrow internationally, approval from the Rijksministerraad is required; in July, Aruba received authorization to raise up to USD 150 million on international markets.
Because Aruba did not deliver the draft rijkswet to the Netherlands by May 1, 2025, the COVID loan interest rate rises to 6.9% instead of 5.1%, adding roughly Afl. 7 million per year. Current supervision rules do not allow Aruba to borrow via the Netherlands at the lower rates available to Curaçao (≈3.1%) and Sint Maarten (≈3.0%). As a result, Aruba must rely on local and international markets at prevailing rates. Geopolitical tensions, wars, and potential trade-war effects on the U.S. economy could push global rates higher, increasing Aruba’s interest costs—risks over which a small island has limited control.
Minister Wever noted that while financial supervision enforces budget discipline, accessing lower-cost Dutch financing would create room in the budget for investments in Aruba’s development. “Supervision remains, but we must secure more benefits so we can finance and implement our own management—guided by choices we make as an island,” he said.
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