I should like to emphasize that the credit measure sets a limit only on the growth of credit. Hence, in the case of Sint Maarten, where credit extension has actually been declining since 2011, the credit measure has no effect. The decline in private credit extension in Sint Maarten clearly indicates certain weaknesses in the economy’s macroeconomic environment.
These weaknesses may be the result of either a decline in the demand for credit or a reduction in the supply of credit by commercial banks.