WILLEMSTAD--The net position of government at the Central Bank of the Netherlands Antilles improved by 63.8 million guilders during the month of June.

This improvement was due to an increase of assets of the Island Territory Curaçao (73.2 million guilders) with the bank. This increase was due to transfers from Dutch Ministry of Interior and Kingdom Relations in connection with the Antillean debt restructuring.

Moreover, transfers from Central Government country to the island Territory Curaçao within the framework of the regular debt comparison between these two entities, contributed to the increase of the assets. The assets of Central Government with the bank had gone down with 9.5 million guilders by paying debts.

Central Bank further relaxed its monetary policy in June. In this regard the obligated reserve percentage decreased by 0.25 percentage points to 8.75 per cent, so that the entry "mandatory reserves' dropped by 10.6 million guilders.

During the bi-weekly Certificates of Deposit (CD) auctions, Central Bank had only aimed towards re-financing of expired CD's, so that the outstanding amount remained unchanged.

The basic amount of currency defined as the sum of the bank notes in circulation and the net current account assets of commercial banks at Central Bank had increased by 1.6 million guilders. This increase is due to more bank notes in circulation.

On the other hand, the current account assets on balance had decreased because the increase of the debts from Central Bank on commercial banks had exceeded the increase of assets from commercial banks.

On the assets side of the balance, the debts had increased with 10.2 million guilders because commercial banks had made use of the credit facility with Central Bank.

The increase in the entry 'deposits of other residents' (9.2 million guilders) is worth mentioning, which is due to Central Government's transfers to the general pension fund APNA. In June the entry 'Capital and reserves' had decreased by 13.8 million guilders.

Finally, the increase in the entry 'Foreign Currency' on the assets side of the balance (55.3 million guilders) can be attributed to the net sale of foreign currency by commercial banks to Central Bank and the afore-mentioned transfers from Dutch Interior Ministry for the debt restructuring.