Annual Report 2002 Bank van de Nederlandse Antillen

1
Annual Report 2002Bank van de Nederlandse
Antillen

• Willemstad, June 26, 2003

2
Developments in the real sector
3
Macro economic figures of selected countries
4
General developments in 2002

• External demand generated economic growth in
  2002
• Sectors tourism, international financial
  business services, harbor activities, and
  telecommunication
• Domestic demand deteriorated, due to less private
  investment and consumption
• The general strike in Venezuela affected growth
  in the fourth quarter

5
General developments in 2002 (contd)

• Lack of confidence in the economy resulting in
• Migration
• No major investment
• Slow recovery of the economy

6
Economic development in 2002

• Slight increase in real GDP(0.3)
• Low inflation of 0.4

7
Developments in consumption( changes, real)
8
Developments in investments(NAf mln.)
9
Labor market development

• The labor market remained weak due to
• Mismatch between demand and supply
• Migration
• Slow economic recovery

10
Labor market of the Netherlands Antilles
11
Public sector developments
12
Budgetary development General Government (NAf
mln)
13
Overview cash operations General Government (NAf
mln.)
14
Composition of revenuesGeneral Government
15
Composition of expendituresGeneral Government
16
Budgetary development Central government (NAf
mln.)
17
Budgetary development Curacao (NAf mln.)
18
Development in total public debt (NAf mln.)

• Total debt over 3.84 billion
• 81 of GDP

19
Development in total public debt (cont.)(NAf
mln.)
20
Net borrowing of the governments

• Net borrowing up to June 18, 2003 NAf 110
  million
• Central government NAf 67 million
• Curacao NAf 43 million

21
Government bonds maturity scheduleAs per June
18, 2003
22
The external sector
23
Balance of payments Transaction basis (NAf mln.)
Diff.
2001
2002
Current account Capital account Financial
account, of which Change in
reserves1 Statistical discrepancies
Current account
-388.7
-90.3
298.4
Capital account
66.5
49.7
-16.8
Financial account of which
214.5
-32.4
-246.9
-Change in reserves 1)
-415.1
-135.2
-279.9
Statistical discrepancies
107.7
73.0
-34.7
1) A - sign means an increase in reserves.
24
Current account balance (NAf mln.)
Improvement current account mainly as result of
lower imports and improved service balance
25
Foreign exchange revenues from services(NAf mln.)
26
Tourism revenues by islandCash basis (NAf mln.)
27
Foreign exchange contribution international
financial and business services sector(NAf mln.)
28
Composition foreign exchange revenues from
services
2002
29
Development in international reserves
30
Monetary
developments
31
Development in the money supply(NAf mln.)

• Strong increase in NDC
• Further expansion in NFA

32
Changes in domestic demand for money by
sector(NAf mln.)

• Substantial increase in demand for local
  government securities
• Net credit to private sector increased moderately

33
Development in credit extension Leeward Islands
Turnaround in private loans extended on the
Leeward Islands
34
Development in credit extension Windward Islands
Slight acceleration in growth total loans
35
Development in domestic interest rates
Pledging rate and marginal lending rate are 2.50
and 3.50, respectively, as per May 19, 2003.
36
Interest rates in international
perspective(averages)
Interest rates Netherlands Antilles compare
favorably with the region
37
The financial sector
38
Macro-prudential indicators
39
Balance sheet development domestic banks(NAf
mln.)

• Assets increased by 3.8 in 2002
• Investment in government paper more than
  doubled.
• Slight increase in lending.
• Funding primarily by demand deposits.
• Capitalization remained adequate.

40
P L development domestic banks(NAf mln.)

• Net operating income before taxes declined
  slightly to NAf 65.8 million.
• Net income after taxes and extraordinary items
  improved considerably to NAf 46.0 million as no
  extraordinary losses were incurred in 2002.

41
Balance sheet development international
banks(NAf bln.)

• Assets increased by 11 owing to
• loans to uncons. affiliates
• investments in uncons. subsidiaries
• Funding primarily through borrowings.
• Capitalization above international standard of 8.

42
Institutional investors
43
Balance sheet domestic life insurance sector(NAf
mln.)

• Growth in total assets slowed to 3.0.
• 67 of total assets comprises investments.
• Equity position more than three times the amount
  required.

44
Balance sheet domestic nonlife insurance
sector(NAf mln.)

• 27.7 decrease in total assets related to decline
  in demand for insurance.
• Capitalization declined but remained well above
  the required solvency margin.

45
Net income domestic insurance companiesBefore
taxes (NAf mln.)

• Net result life insurance industry improved to
  NAf 20.3 million (19.4) owing mainly to strong
  increase in net investment income.
• Substantial increase to NAf 37.2 million in net
  result nonlife insurance industry
• decline in net claims incurred
• underwriting profit
• strong improvement in net investment income

46
The End