Recently, the Minister of Finance Xiomara Maduro and the Secretary of State of the Interior and Kingdom Relations, Raymond Knops signed a loan agreement for Aruba to cover the payments of the external debt of 2021 and 2022.
It entails an amount of 177.1 million to cover debt maturity in 2021 and 346 million in 2022.
These debts totaling 523.1 million were made 10 years ago at an interest rate of 5 to 6%. The Netherlands agreed to refinance these debts at a lower interest rate of 2.64%. The debt refinancing at a reduced interest saves Aruba 82 million in debt interest rate in the next 7 years. The new loan does not increase our national debt.
The debt refinancing through the Netherlands is essential for investors to have the guarantee that Aruba will continue to comply with its financial obligations in 2021 and 2021.
Debt refinancing brings confidence among investors and rating agencies, for example, Standard and Poor’s. In so doing, the government can guarantee a good standing among investors.
