Deposit Guarantee Scheme explained in more detail in SER Curaçao

Willemstad, June 20, 2023 – At the invitation of the Social and Economic Council (SER) of Curaçao, the Minister of Finance, Mr. drs. J. Silvania, last Friday, June 16, 2023, gave a detailed oral explanation of his proposed request for advice, which concerns a concept of a national decree, containing general measures, to implement article 39 of the National Ordinance on the Supervision of Banking and Credit System, also known as the National Decree on the Deposit Guarantee System.

The purpose of this proposed draft national decree is to compensate account holders in the event that a credit institution cannot meet its financial obligations. These obligations in this case concern claims from deposits, as described in Article 39 of the National Ordinance on Banking and Credit. Article 39 states that the Central Bank of Curaçao and St. Maarten (CBCS) shall consult with the representative organizations concerned about the introduction of a guarantee on claims from account holders. This guarantee applies up to a certain maximum amount and concerns a registered credit institution, not being an international credit institution. This is intended to protect account holders against the risk that such a credit institution cannot meet its obligations.

These obligations are essentially the guarantee of claims, with the nature of the claims to be guaranteed, the types of account holders and the maximum amount to be guaranteed being determined by national decree, containing general measures. If no agreement is reached during the discussions, as described in Article 39 of the National Ordinance on Banking and Credit Supervision, the Minister is obliged to introduce such a regulation.

The current draft national decree, which is now before the SER for advice, provides for these measures. It provides a guarantee for account holders’ claims up to a certain maximum amount with a registered credit institution, and establishes binding rules for all registered credit institutions, except for international credit institutions.

Due to the significant socioeconomic implications of this draft country decree, it was decided to seek the opinion of the SER.

The explanation by the Minister of Finance and the subsequent discussion with the SER were characterized by their constructive nature.