http://www.aruba-bb.com/viewtopic.php?t=31814&sid=23b113e1f82a21ba8c1a513447171a50
Aruba's National Debt Is $1.1 billion Posted by Eddy: Thu Jun 01, 2006
ORANJESTAD-President of the Dutch Bank in The Netherlands, Nout Wellink says that government finances have entered the critical phase. In his speech during a meeting organised by the Aruba Chamber of Commerce, he called on the government to do its utmost best to win back the confidence of the public and associations on the island in regard to their policies.
Wellink advises the government to cut back on spending by lowering salaries of government employees and pension. If that does not happen there will be gigantic problems in the mid and long term says Wellink.
Wellink also showed understanding for the present situation on the island. Aruba is by far not the only country in the World facing difficulties in its finances. Governments of small countries are especially under constant pressure from those that have elected them. They want politicians to solve their problems, but they do not want to pay for the solutions says Wellink.
The national debt of Aruba has grown from
28 percent of the Gross Domestic Product (GDP) in
1999 to
46 percent of the GDP in
2005, approaching percentage levels of that of the U.S. and The Netherlands.
The national debt of Aruba equals an amount of little over $1 billion.
Wellink says that the growing number of people mainly the baby-boomers reaching retirement age, in combination with low growth rates in employee productivity and a lack of measures will lead to an explosive growth in national debt in the next 20 to 30 years.
