PHILIPSBURG, St. Maarten – The Board of Financial Supervision (Cft) has warned that several government-owned entities and social funds on St. Maarten pose major risks to the country’s public finances if urgent measures are not taken.
According to the Cft, companies including telecom provider TELEM, utility company GEBE and postal service PSS are under significant financial pressure and face governance and operational challenges. The supervisory body stressed the importance of establishing effective management and supervisory boards and implementing a clear government strategy to address the problems.
The Cft also expressed serious concern about the financial situation of the healthcare funds managed by social insurance organization SZV. Annual losses of approximately XCG 35 million are currently being covered by reserves from other social funds, mainly the AOV pension fund. However, the Cft warned that these reserves could be depleted within a few years, potentially placing healthcare and pensions under severe pressure.
In addition, the Cft criticized the continued delays in St. Maarten’s budget process. The 2026 budget is expected to be approved only halfway through the year, while preparations for the 2027 budget have already encountered setbacks because ministries are not submitting information on time.
Upcoming budget
According to the Cft, it is essential that St. Maarten addresses the financial risks in the upcoming 2027 budget and proceeds with planned reforms, including the proposed General Health Insurance (GHI), which the country hopes will reduce healthcare deficits starting in 2027.
