News item | 06-03-2026 | 4:00 PM
The proposal for a Kingdom Act on Sustainable Public Finances Aruba (HOFA) will be submitted to the Council of State of the Kingdom for advice. The Kingdom Council of Ministers agreed to this today. After completion of the consultation, a next step has been taken in the creation of this joint bill by Aruba and the Netherlands.
The HOFA Consensus Kingdom Act sets out the guidelines for achieving and maintaining healthy public finances in Aruba. A responsible budget and good financial management contribute to this. The consensus Kingdom Act goes hand in hand with the ‘National Ordinance on Safeguarding Sustainable Public Finances (Lwho)’. This is a law of the country of Aruba itself. The standards in the Kingdom Act and the national ordinance are based on recommendations from the International Monetary Fund.
Lower interest charges
Once the law is in effect, Aruba can use a loan facility from the Netherlands. This way, the country can borrow money for public investments under the same favorable conditions as the Netherlands. In addition, the Netherlands is prepared to refinance part of the Aruban loans on the American capital market. It has also been agreed that Aruba will pay a lower interest rate on the loan it took out from the Netherlands during the Covid pandemic. All these agreements ensure that Aruba’s interest costs decrease. The interest that Aruba saves can be used for investments in your own country, such as in education, healthcare and the economy.
State Secretary for the Interior and Kingdom Relations Eric van der Burg: “Another important step has been taken towards healthy public finances for Aruba. The Netherlands and Aruba have been working together on the bill since mid-2024 so that the Aruban government can also make more investments in the longer term that are good for the residents and the economy. This will regulate sustainable public finances, supervision and the loan facility in a government law, just like for Curaçao and Sint Maarten. I am pleased that we put our shoulders to the wheel on this together.”
Prime Minister of Aruba Mike Eman: “This is an important moment of peace for Aruba and for the Kingdom. Especially in a world that is becoming increasingly restless and unpredictable, it is of great importance that there is trust, stability and cooperation within the Kingdom. When we work together, we can better meet the challenges of our time and work on investments that serve the Common Good of Aruba and the Kingdom.”
