Curaçao Implements Deposit Guarantee Scheme
As of July 1, 2025, Curaçao has officially implemented its Deposit Guarantee Scheme (DGS)—a transformative step toward strengthening the resilience and reliability of the island’s financial sector. Enacted under national decree P.B. 2025 no. 53 and spearheaded by the Centrale Bank van Curaçao en Sint Maarten (CBCS), this scheme establishes a safety net for depositors in the event of a bank failure. It is not just a regulatory update; it is a critical instrument for economic stability and public trust.
Under the DGS, individual depositors are protected up to XCG 50,000 per bank and XCG 25,000 per credit union, with guaranteed payouts to be made within 20 business days of an account being affected. The Deposit Guarantee Fund (DGF), financed through annual contributions by licensed domestic credit institutions, ensures that these obligations can be met swiftly and without burdening taxpayers. The scheme does not apply to foreign institutions, reinforcing the strength of Curaçao’s regulated domestic financial sector.
A Lesson Learned from GIRO Bank
The urgency and relevance of the DGS are underlined by recent history—most notably the collapse of GIRO Bank in 2019. Thousands of customers were left in limbo as years of mismanagement and weak oversight culminated in the institution’s failure. The resulting public frustration, financial insecurity, and loss of trust highlighted a glaring gap in Curaçao’s financial safety framework: there was no guarantee that people would get their money back.
The new DGS directly addresses this shortcoming. It ensures that depositors at licensed institutions can now bank with confidence, knowing they have a layer of protection in place. This marks a significant shift from reactive crisis management to proactive risk mitigation.
Building Confidence and Economic Resilience
Deposit guarantee schemes are not just about refunding money—they’re about preserving confidence in the financial system. When people believe their deposits are secure, they are less likely to panic during times of economic uncertainty. This, in turn, prevents destabilizing bank runs and supports a healthy, functioning financial system—critical for sustained economic growth and investor confidence.
In aligning Curaçao with international best practices, the DGS represents a long-term investment in financial stability, good governance, and public trust. It also sends a signal to domestic and international stakeholders that Curaçao is committed to maintaining a sound, responsible financial system.
