Starting May 1st, the interest rate on Aruba’s COVID-19 loan from the Netherlands will increase from 5.1% to 6.9%, according to Dutch State Secretary for Kingdom Relations Zsolt Szabó.
The increase stems from conditions set in an administrative agreement signed on June 4th, 2024, by Szabó’s predecessor, Alexandra van Huffelen, and then Prime Minister Evelyn Wever-Croes. In that agreement, the Netherlands agreed to lower the interest rate on a 900 million florin loan to 5.1%, contingent on Aruba fulfilling certain obligations.
A key condition was the timely submission of a new Consensus Kingdom Act to parliament, focused on financial supervision. This legislation has yet to be introduced. As a result, the agreement stipulates that the interest rate will automatically revert to 6.9% if the act is not submitted by May 1st, 2025.
According to Dutch officials, this provision was included to incentivize the Wever-Croes cabinet to move swiftly and diligently in drafting and presenting the new legislation.
The interest hike marks a setback for Aruba, which had briefly benefited from more favorable loan terms. The development underscores ongoing tensions in Aruba–Netherlands financial relations and the importance of meeting administrative deadlines tied to international agreements.
