Member of Parliament Xiomara Maduro has called on the Minister of Finance to provide greater clarity regarding the future use of the financial surpluses accumulated by Aruba’s social funds, SVb (Social Insurance Bank) and AZV (General Health Insurance).
For several years, both social funds have recorded strong financial results, resulting in structural surpluses. Under the previous MEP government, the vision was for these extra funds to remain within SVb and AZV in order to safeguard the long-term sustainability of the funds. The financial supervisory body CAft, however, has suggested that these surpluses should be transferred to the government to help reduce Aruba’s national debt.
According to the former MEP government, keeping the surplus within the social funds was essential to avoid future measures such as raising the retirement age or cutting back on AZV health coverage. In contrast, the current AVP–Futuro government appears to be taking a different approach, which could significantly impact the reserves of SVb and AZV.
This concern follows announcements by Prime Minister Mike Eman regarding an increase in AOV pensions and a reduction in AZV premiums for senior citizens. Both measures carry substantial financial implications and are expected to affect the existing surpluses of the social funds.
Additionally, Finance Minister Geoffrey Wever reportedly informed the Advisory Council (Raad van Advies) that the government intends to use the social fund surpluses to help reduce Aruba’s debt, in line with CAft recommendations. This potential use of funds has raised further concerns about the long-term financial stability of SVb and AZV.
For this reason, MP Xiomara Maduro submitted formal questions to Finance Minister Wever, requesting clear explanations about the intended destination and use of the surpluses held by the social funds.
Minister Wever indicated that in 2025, the government will not yet use the social fund surpluses to reduce national debt through treasury banking (schatkistbankieren). However, he did not explain how Prime Minister Eman’s proposed pension increases and AZV premium reductions would be financed, referring the matter back to the Prime Minister for clarification. This response was described as unusual, as such financial explanations typically fall under the responsibility of the Minister of Finance.
MP Maduro emphasized that it is essential for the public to understand how these decisions will affect the future of Aruba’s social funds. She stressed the importance of ensuring that future generations are not faced with higher retirement ages or reduced healthcare coverage as a result of today’s policy choices.
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