PHILIPSBURG--The Government of St. Maarten has worked out a plan to settle the outstanding debts to Social and Health Care Insurances SZV and general pension fund APS that have built up over the years.
The debts are estimated to total more than NAf. 100 million between the two organisations. Prime Minister William Marlin told reporters on Wednesday that Government had come to an arrangement with SZV and APS whereby the two organisations would acquire ownership of the new Government Administration Building on Pond Island for NAf. 45 million as a special arrangement to offset Government’s debts to the two organisations.
“With the outstanding debt to SZV and the pension fund APS and budgets not being balanced, Government had to ensure that debts for SZV and APS are settled and some sort of agreement has to be reached,” Marlin said in response to questions from The Daily Herald at the Council of Ministers weekly press conference on Wednesday.
“Government had to bring some structure to show that Government was serious about a solution. So we’ve come up with a formula where the new Government Administration Building will be sold for NAf. 45 million and they [APS and SZV – Ed.] in return would finalise the building and equip the building with … furniture and IT, etc. and would rent the building back to Government. The amount that the building is sold for will be deducted from what Government owes them.”
In addition, Marlin said the entire amount of funds from the division of assets of the former Netherlands Antilles, estimated to be around NAf. 60 million for St. Maarten, had been pledged to go towards the reduction of the debts to SZV and APS.
On top of this, the savings Government will accrue in rent after moving into the new Government Administration Building will be used to further reduce the debts to APS and SZV.
“So, rather than having a 30-year agreement with them [SZV and APS – Ed.], we will have a much shorter period and will buy back the building after a number of years, but the possibility is there to have them own the building longer,” Marlin said.
He said Government was providing the details of its plans to settle the APS and SZV debts as part of Government’s open and transparent policy. He said there was a basic agreement with the two organisations.
Marlin was scheduled to meet with SZV as a follow-up on the matter on Wednesday.
