Aruba
Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
Return to homepage | Last updated: 27 April, 2020
General information
The Coronavirus outbreak will affect Aruba through two key channels — the spread of COVID-19 and a sharp decline in tourism. The authorities have adopted containment measures, including a shelter-in place, a compulsory dusk-to-dawn curfew, travel restrictions, suspension of non-vital government work, closures of schools and non-essential business activities, and limits on social gatherings.
Tax measures – Direct and Indirect
(e.g. payment deferrals, rate reductions…)
Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.
Employment-related measures
(e.g. state compensation schemes, training…)
Payment exemption of employer’s part of the monthly AOV/AWW premiums for the months of April, May and June 2020
- Entrepreneurs and companies are exempt from payment of the monthly employer’s part of the AOV/AWW premium contribution of the months of April, May and June 2020. To become eligible for this exemption the monthly filing of the wage tax and social premiums declaration must be accompanied by a ‘payroll summary’. This requirement is applicable for entrepreneurs and companies having economic activities relating to the tourism industry such as, casinos, bars & restaurants, tour operators, coffee lounges, security companies, beauty parlors, travel agencies, car rental companies, perfume shops, watersports, carwash, jewelry stores, fashion retail stores, laundries & dry cleaners, ground handlers, employment agencies, construction companies.
Economic stimulus measures
(e.g. loans, moratorium on debt repayments…)
- The reserve requirement imposed on commercial banks has been reduced by 1.0 % age points to 11 % , thereby increasing the free liquidity of commercial banks, which can be used for lending and meeting additional liquidity demands of customers.
Prudential measures
- In order to increase the loss absorbing capacity of the commercial banks and their capacity to continue and expand lending under the current stress situation, the CBA has taken the following measures with immediate effect:
- A reduction of the minimum Capital Adequacy Ratio from 16 % to 14 %.
- A reduction in the Prudential Liquidity Ratio from 18 % to 15 %.
- A reduction of the maximum permitted 'Loan-to-Deposit Ratio' from 80% to 85%.
- On March 17, the CBA announced that it would not grant any new foreign exchange licenses related to outgoing capital transactions, and that it stands ready to take further measures to preserve the peg.
