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Economic Performance in the Netherlands Antilles
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Key Statistics
- The Netherlands Antilles experienced a prolonged recession in 1997, with real GDP declining by 12% since 1996.
- Economic contraction led to sharp inflation (5.0% in 2000) and high unemployment (14.1% in 1999).
- However, the economy showed modest improvement starting in 2001, with estimated growth of ¾ percent over 2001–02.
Rebound from Recession
After a prolonged recession, the Netherlands Antilles began to see signs of economic recovery in 2001. This marked a positive turn for the country’s economy and set the stage for continued growth.
Financial Sector Environment
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Overview
The Netherlands Antilles have a well-developed and well-functioning legal and regulatory framework for financial sector supervision.
Key Players
- The Central Bank of Aruba (BNA) is responsible for financial sector oversight, combining banking, insurance, pension fund, and mutual fund supervision.
- The laws and regulations are largely compliant with international standards on banking supervision, insurance supervision, AML/CFT, and investment institution supervision.
Other Key Points
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Business Environment
The business environment in the Netherlands Antilles operated under a regime of relatively little disclosure until recent years. However, increased international efforts to combat drug trafficking, money laundering, anti-terrorism, and better quality financial sector supervision have changed this outlook.
Need for Disclosure
- The authorities and private sectors agree that more disclosure is needed to comply with growing international standards.
- This shift towards greater transparency will help the Netherlands Antilles maintain its commitment to sound economic practices.
International Assessments
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FSF Classification
The Netherlands Antilles were classified as a jurisdiction “generally perceived as having adequate measures in place” by the Financial Stability Forum (FSF) in 2000.
Other Assessments
- They have been subject to other assessments of their AML policies and practices and financial sector supervision.
- These assessments demonstrate the country’s commitment to maintaining high standards in its financial sector environment.