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Netherlands Antilles: Economic and Financial Assessment

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Economic Overview

The Netherlands Antilles has experienced economic contraction since 1996, with real GDP declining by around 12% over this period. However, the economy showed a modest upturn from 2001, with estimated growth of around 0.5% over 2001-02 and projected growth of 1.2% in 2003.

Key Indicators

• Real GDP decline: 12% since 1996
• Estimated growth (2001-02): 0.5%
• Projected growth (2003): 1.2%

Financial Sector

The banking system shows some improvement in 2002, with a decrease in non-performing loans and an increase in provisions against these loans.

Challenges

• High exposure to the real estate market
• Continued slow growth
• Ongoing efforts to strengthen standards against terrorist finance

Regulatory Framework

The Netherlands Antilles have a well-developed and well-functioning legal and regulatory framework for financial sector supervision.

Key Players

• BNA (Bank of the Netherlands Antilles): responsible for financial sector oversight
• Supervision areas:
  • Banking
  • Insurance
  • Pension fund
  • Mutual fund

Transparency and Disclosure

Traditionally, the business environment in the Netherlands Antilles has operated under a regime of relatively little disclosure. However, increased international efforts to combat drug trafficking and money laundering, anti-terrorism efforts, greater awareness of the importance of better quality financial sector supervision, and less tolerance for excessively favorable tax regimes have changed this outlook.

Changes

• Increased transparency and disclosure requirements
• Greater scrutiny of financial institutions
• Improved cooperation with international authorities