The Council of Ministers of the Kingdom of the Netherlands has approved the draft Kingdom Act on Sustainable Public Finances for Aruba (HOFA), marking the start of an online consultation process. This law is aimed at ensuring Aruba’s public finances remain stable and sustainable in the long term, allowing the island to invest in its future responsibly.
The Kingdom Act will work alongside Aruba’s own National Ordinance on the Guarantee of Sustainable Public Finances (Lwho), which is based on International Monetary Fund guidelines to maintain balanced government spending.
Secretary of State Van Marum emphasized that this cooperation demonstrates how Aruba and the Netherlands can achieve results together while respecting each other’s positions. Prime Minister Eman added that the agreement strengthens Aruba’s credibility and lays the foundation for a durable relationship within the Kingdom, with a renewed focus on strategic cooperation.
The law introduces budgetary standards, financial supervision by the Aruba Financial Supervision Council (CAft), and eventually the creation of Aruba’s own Budget Chamber. Benefits include lower interest rates on loans, refinancing opportunities, and more financial space for domestic investments in education, healthcare, and economic growth.
The Kingdom Act will be evaluated every five years to ensure its effectiveness and to support Aruba’s financial resilience.
Photo Credits: NoticiaCla – Conseho di Minister di Reino a aproba ley pa finanzas publico duradero na Aruba
