The NAf. 26 million sinking bond issue by the Central Bank on behalf of the Government of St. Maarten (see related story) is obviously welcome. The former island territory had not been allowed to borrow even after becoming an autonomous country within the Dutch Kingdom when the Netherlands Antilles
was dismantled per 10-10-10, due mostly to budgetary problems.
It’s no doubt especially good news for Windward Roads Infrastructure and MNO Vervat that pre-financed work on district beautification and infrastructural improvements. They should in turn be able to comply with whatever outstanding amounts may be owed to their subcontractors and suppliers, so the money is likely to be spread out a bit within the community too.
The bond loan has favourable conditions, but will have to be repaid eventually. That’s why the smart thing to do is focus on projects that either directly produce income or facilitate economic growth leading to higher tax revenues.
As Finance Minister Richard Gibson has stated on numerous occasions, one can only spend what one earns. Local politicians announcing all kinds of grand development plans ahead of next Monday’s election would do well to take this into account.
Moreover, there is still quite some important unfinished business such as the stalled prison expansion. Before dreaming up new ways to spend public funds it would seem advisable to first fully meet already existing commitments.
