Here is the converted article in Markdown format:

Merchandise Experts Decline by 12% Over Two Years

Amidst concerns over government debt and real estate values, traditional merchandise experts have seen a decline of 12 percent in the past two years. Despite this setback, the growth rate remains strong at 11¾ percent for 2002, largely driven by foreign exchange inflows.

Banking Sector Shows Improvement

The banking sector has shown some signs of improvement in 2002, following a period of weakening conditions. The quality of loan portfolios has deteriorated due to the decline in real estate values, but non-performing loans have decreased slightly and provisions against these loans have increased. A more flexible inspection schedule has been introduced, and special administration has been imposed on one undercapitalized bank.

Strengthened Regulations and Supervision

The Netherlands Antilles boasts a well-developed and functioning legal and regulatory framework for financial sector supervision. The Bank of the Netherlands Antilles (BNA) is responsible for overseeing banking, insurance, pension funds, and mutual funds, and has implemented strict bank licensing policies.

Strong Legal Framework and Professionals

The financial sector benefits from a strong general legal and judicial framework, as well as the presence of well-trained professionals in law, taxation, accounting, auditing, and company management. The civil code and companies laws are based on European continental systems, and loan contracts, enforcement, and security mechanisms function well.

Changes in Business Environment

Traditionally, the business environment has operated under a regime of limited disclosure. However, international efforts to combat drug trafficking, money laundering, and terrorism have led to increased awareness of the need for better financial sector supervision and greater transparency. The authorities and private sector now recognize the importance of more disclosure to comply with international standards.

OECD Commitment and Supplementary Measures

The Netherlands Antilles has committed to eliminating harmful tax practices under the Organization for Economic Cooperation and Development (OECD). In August 2001, company service providers were placed under supervision by the Supervisory Board for Fiduciary Business, requiring them to apply Know Your Customer (KYC) rules and report unusual transactions.

Other International Assessments

The Netherlands Antilles has been subject to other assessments of its Anti-Money Laundering (AML) policies and practices and financial sector supervision. The Financial Stability Forum (FSF) classified the jurisdiction as “generally perceived” in April 2000, and other international organizations have also assessed the country’s AML policies and practices.

Conclusion

While traditional merchandise experts have declined by 12 percent over the past two years, the banking sector is showing signs of improvement, and the financial sector benefits from a strong legal framework and well-trained professionals. However, more disclosure is needed to comply with international standards, and supplementary measures are being implemented to combat money laundering and terrorist financing.