The Aruba Trade & Industry Association (ATIA) has emphasized the importance of lowering the interest rate on Aruba’s national debt, stressing that the benefits would extend to the entire community.
ATIA has consistently focused on the financial aspects of the proposed Rijkswet, pointing out that Aruba could secure a much lower interest rate on its COVID loan of approximately Afl. 916 million.
Because Aruba failed to submit the Rijkswet to the Dutch Parliament before the May 1, 2025 deadline, the Netherlands raised the interest rate from 5.1% to 6.9%. This decision will cost Aruba nearly Afl. 7 million extra in interest payments in 2025 — money that ultimately comes from taxpayers.
ATIA noted that if the governments of Aruba and the Netherlands reach a new agreement, the interest rate could drop to between 3.2% and 3.4% — less than half of the current rate. This would save Aruba millions in interest. In addition, the Netherlands has the option to refinance other international debts, valued at roughly Afl. 1 billion, at the same lower rate when those debts mature in the coming years. Currently, Aruba pays 5.5% to 6.5% on its international obligations.
Since interest payments are one of the largest expenses in Aruba’s annual budget, a reduction would free up significant funds. These savings could be used to pay down the national debt more quickly, reduce future interest costs, and invest in critical areas such as infrastructure, education, technology, and social programs. Over time, this could even make it possible to ease the tax burden on citizens.
ATIA also urged the government to clearly explain to the public the difference between the current financial supervision system, in place since 2015, and the proposed Rijkswet. Lower interest rates on the national debt would not only relieve the government but also stimulate commerce and improve the cost of living for everyone in Aruba.
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