ORANJESTAD (AAN) – The Government of Aruba recently finalized a $160 million international loan through United States capital markets, a decision confirmed by official documents that may result in tens of millions of dollars in additional interest costs over the next decade.
According to the Decree of Financing Necessity 2026-I, the financing is supported by Citigroup Global Markets Inc. and carries a 10-year term with a fixed interest rate of 6.29%. Financial calculations indicate the country will pay over $10 million annually in interest alone. By the end of the loan term, the total interest paid will surpass $100 million, excluding the repayment of the original principal.
The agreement has generated political and economic debate, as the secured rate is significantly higher than those obtained by Curaçao and Sint Maarten under the Kingdom Law of Financial Supervision, known as HOFA. In previous cases involving those nations, interest rates varied between 3% and 3.5%. Experts estimate that had Aruba obtained a rate near 3.4%, the country could have saved approximately $46 million, equivalent to over 82 million Aruban Florins.
Analysts note that international markets evaluate financial risk strictly, often imposing higher interest rates on small economies with high debt levels that lack Dutch government backing. This situation has also renewed concerns regarding financial management, transparency, and budgetary control within the government, issues recently highlighted by financial supervision instances.
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