At the initiative of Curacao International Financial Services Association ( “CIFA”) the DCSX (represented by CEO Mr. René Römer) was invited to co-present with Curacao Growth Fund ( “CGF” represented by Managing Director Mr. Justus Martens) at the CIFA lunch event of April 6, 2017. At this sold out event a closer look was taken at and topics were discussed related to the latest developments in our local capital market. The lack of actively deployed capital to grow the economy was looked at.
While there are certainly several difficulties to develop a well functioning capital market in a small open Island economy Curaçao is one of the few of its kind that could achieve that because of among others its strong professional pension funds.
Mr. Martens from CGF, which invests in well managed local companies: unlike popular believe private equity investing has shown to work in Curaçao. It is new but it works. In order to grow the capital market the financial services sector as a whole should:
- Support capital market initiatives;
- Don’t confuse prudence with inaction (no decision is a decision);
- Be a catalyst for business growth, development and innovation;
- Help companies reach their potential.
Mr. Römer from DCSX: a thriving capital market can also be stimulated by the the Government, by creating tax incentives and removing red tape for local and foreign investors seeking to invest in local businesses and projects:
- No income tax / capital gains taxes on income from DCSX listed entities (including private equity funds);
- Reduced corporate income tax for DCSX listed companies;
- No FX fees when investors repatriate earnings from investments in DCSX listed securities;
- Granting tax holidays to projects that allow for local investment participation from the market by issuing securities on the DCSX;
- Qualifying DCSX listed securities as local investments for (also institutional) investors under certain conditions;
- And more.
Mr. Römer ended the presentation with a sincere thank you to CIFA for their initiative and stating: “Curaçao still has great potential but everyone here at this event has to do their part and government support is required”.
From left to right: Steven Martina (CEO Guardian Group), Anuschka Cova (President CIFA), Evelyn Kruithof (Director APC) Renè Römer (CEO DCSX) and Justus Martens (Curaçao Growth Fund)