Suriname gov’t responds to latest IMF review

PARAMARIBO, Suriname:

The Suriname government has welcomed the latest assessment of the country’s economy by the International Monetary Fund (IMF) with President Chandrikapersad ‘Chan’ Santokhi thanking the population for the “great sacrifices” to avert financial ruin.

“Despite the heavy restructuring process, we have still found room to provide relief to those who have made sacrifices,” Santokhi said.

The IMF said Suriname has requested an extension, until March 2025, of its Extended Fund Facility (EFF) as well as seeking an increase of about US$63 million from the Washington-based financial institution.

The IMF said that its staff and the Surinamese authorities have reached a staff-level agreement on the fourth review of the country’s economic recovery programme that is being supported by the EFF and that the review is subject to approval by the IMF’s executive board.

But the IMF noted that the fiscal discipline and tight monetary policy are bearing fruit in restoring macroeconomic stability and that the economy in the Dutch-speaking Caribbean Community (CARICOM) country is growing, inflation is coming down, and investor confidence is returning.

The IMF said Suriname is on track to achieve the central government primary surplus target of 1.6 per cent of GDP (gross domestic product) this year and that the structural reform agenda is progressing, albeit with some delays.

It said the fragile economic recovery and rising social tensions call for a more measured pace of fiscal consolidation in 2024.

“Staff and the authorities agreed to reduce the 2024 primary balance target from 3.5 to 2.7 per cent of GDP. The 3.5 per cent of GDP primary balance target, which underpins debt sustainability, will now be reached in 2025.”

Santokhi said that several initiatives in recent months have led to an improvement in the economy, including Suriname Airways (SLM) now being able to fly with its own aircraft again.

He said the agreement with the various trade unions will “allow us to restore the economy together and think of the positive development with land conversion that will enable people to build their own homes affordably.

“It is good to note that the IMF is also aware of the developments we are experiencing in the oil sector. And I would add the steps we are now taking for sustainable income based on our carbon negative position and our tropical rainforest, where we provide oxygen for the world,” said Santokhi, who is attending the COP 28 in Dubai, in a statement released by the Suriname Communications Service.

CMC