## SURINAME — SEVENTH REVIEW UNDER THE EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY, REQUESTS FOR MODIFICATION OF PERFORMANCE CRITERIA, WAIVER OF NONOBSERVANCE OF A PERFORMANCE CRITERION, AND FINANCING ASSURANCES REVIEW (1surea2024004-print-pdf)

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### Executive summary and program status
- Date and decision:
  - Washington, DC – September 18, 2024: The Executive Board completed the seventh review under the EFF arrangement for Suriname.
  - Completion of the review allows the authorities to draw the equivalent of SDR 46.7 million (about USD 63 million), bringing total program disbursement to SDR 337.1 million (about USD 455 million).
  - The Executive Board approved a waiver of non-observance of the end-June 2024 performance criteria on the central government primary balance based on corrective actions already taken.
- Program scope and objectives:
  - EFF arrangement approved on December 22, 2021, in an amount equivalent to SDR 472.8 million (366.8 percent of quota).
  - Program objectives: restore macroeconomic stability and debt sustainability; protect the poor and vulnerable; upgrade monetary and exchange rate policy framework; address banking sector vulnerabilities; advance anti-corruption and governance reforms.
- Financing note preserved verbatim:
  - "19.1 million or about USD 25.8 million would be for budget support."

### Recent macroeconomic outcomes and outlook
- Growth and activity:
  - Growth estimated at 2.1 percent in 2023.
  - Growth should reach around 3 percent in 2024.
  - It is expected to take several years for real activity to return to its pre-pandemic level.
- Inflation and reserves:
  - Headline inflation fell to 16.2 percent y-o-y in June.
  - Inflation is expected to continue falling to 12.7 percent y-o-y by end-2024.
  - Usable international reserves now stand at close to 6 months of imports (125 percent of the ARA metric).
- Financial markets and investor confidence:
  - International bond spreads are at record lows.
  - Donor support and investor confidence are increasing.
- Oil scenario (Box 1) — illustrative upside:
  - Hypothetical FID on block 58 by end-2024; oil production expected to begin by 2028.
  - Total project investment of USD 12 billion.
  - Oil production peaking at 73 million barrels in 2030 and 2031.
  - Growth peak of about 78 percent in 2028; non-oil GDP growth stabilizing at 5 percent over the long term.
  - Oil revenue: value of oil exports will peak in 2029 with an increase of about 47 percentage points of GDP relative to the baseline; oil revenue expected to rise to a high of about 22 percent of GDP in 2033.
  - Value of oil revenues tied to payments of debt in the VRI amounts to an average of about 1.4 percent of GDP annually in 2028-2031.
  - Gross international reserves (GIR) are expected to increase to 109 percent of GDP by 2035.
  - Cautionary note: successful development is a major upside risk but requires caution to prevent misallocation and Dutch Disease dynamics.

### Program implementation, corrective actions, and structural benchmarks
- Quantitative performance:
  - Authorities missed the end-June primary balance target due to an overpayment to the electricity company (EBS); the overpayment has subsequently been returned to the state budget (prior action for completion of this review).
  - All other quantitative targets were met.
  - End-March target on social assistance spending (reported as missed in the last review) was met according to revised data.
- Specific corrective and budget measures:
  - EBS returned the May–June overpayment to the state budget.
  - EBS mandated to remit to the budget each month starting August 2024 additional revenues (about SRD 250 million or 0.15 percent of GDP) collected from recent electricity tariff increases.
  - Authorities are taking steps to further mobilize revenues to keep the end-year primary balance target within reach.
- Structural benchmarks and prior actions:
  - A time-bound recapitalization plan for the CBvS finalized (prior action).
  - Line ministries required to report monthly the stock of arrears to the MoFP (end-June SB met ahead of schedule in May).
  - Continuous SB on publishing the quarterly budget execution report and an end-June SB mandating all importers/exporters use a Fiscal Identification Number were met.
  - SB on publishing the CBvS’ FY 2021 audited IFRS financial statements was implemented with delay in August.
  - FX trading platform launch (end-September 2023 SB) expected with delay in September 2024.
  - End-June 2024 SB on amending Anti-Corruption legal framework was not met but is expected to be implemented by end-November.

### Fiscal policy, revenue measures, and social protection
- Fiscal anchors and wage bill:
  - Authorities committed to a 2024 budget target: a primary central government surplus of 2.8 percent of GDP.
  - Wage bill to be maintained at 6.8 percent of GDP in 2024; expedite removal of unregistered workers and chronically absent civil servants from payrolls.
- VAT, tax administration and non-tax measures:
  - 60 percent of the consumption basket taxed at the standard 10 percent rate.
  - New 5 percent rate introduced on water, electricity and cooking gas in June 2024.
  - Over 4,300 taxpayers registered for VAT by July 2024.
  - Fuel taxes reimposed/increased expected to generate 0.8 percent of GDP in revenues in 2024.
  - Increased leasing fees and other non-tax measures estimated to bring 0.3 percent of GDP in revenues in 2024.
  - Recruit 25 new staff for the Tax Department by end-November.
- Electricity and LPG subsidy phase-out:
  - Average electricity tariffs increased by more than 80 percent since start of 2023; tariffs for commercial users reached cost recovery in June 2024.
  - Further household tariff increases of 7 percent scheduled for September and November.
  - LPG prices increased by 27 percent by June; subsequent increases will ensure subsidy fully eliminated by September 2026.
- Social spending and transfers:
  - Cash transfers increased by 0.4 percent of GDP in 2023 and a further bonus paid in January.
  - Monthly report to be published on households/individuals covered by each social program and average value of cash transfers.
  - Social assistance targets met for two consecutive reviews; revised data show the Q1 social spending IT previously reported as "Not Met" was actually met.
- Capital spending and major projects:
  - Capital expenditure expected to increase to 3.3 percent of GDP in 2024; climate resilience integrated into project appraisal.
  - New bridge with Guyana under preliminary evaluation; Suriname’s share would amount to 3.5 percent of GDP if pursued.

### Debt treatment, restructuring progress, and financing outlook
- Debt restructuring:
  - Debt restructuring process nearing completion: bilateral agreements with all official creditors and most commercial creditors achieved.
  - Domestic debt arrears cleared, except a small amount disputed and under audit.
  - Remaining commercial creditors make up 4 percent of external debt; authorities negotiating offering same terms as other creditors.
  - Authorities started negotiations with bilateral creditors on second stage of debt treatment involving stock treatment.
- Financing:
  - Suriname’s capacity to repay assessed as adequate under baseline but subject to significant risks.
  - Fund credit outstanding will peak in 2025 at 50 and 12 percent of usable reserves and GDP, respectively.
  - Annual debt service to the Fund peaks in 2029 at 4 percent of exports of goods and services.
  - Out of the SDR 46.7 million scheduled for the seventh review, SDR 19.1 million (41 percent) would be made available for budget support.
  - IDB commits to providing budget support of at least USD 150 million in 2024 conditional on IMF program review; CDB will provide USD 25 million in budget support in 2025.
- Public debt and GFNs:
  - Public debt projected to fall: 90.3 (2023) → 85.7 (2024) → 78.6 (2025) → 73.1 (2026) → 68.3 (2027) → 64.8 (2028) → 60.4 (2029) → 55.3 (2030) → 50.1 (2031) → 45.1 (2032) → 40.3 (2033).
  - Gross financing needs (incl. arrears clearance) (percent of GDP): 6.8 (2023), 6.6 (2024), 3.3 (2025), 2.7 (2026), 5.0 (2027), 6.5 (2028), 7.0 (2029), 6.9 (2030), 7.0 (2031), 6.8 (2032), 6.8 (2033).
  - GFNs peak in 2024 due to arrears clearance but are expected to trough in 2026 then rise gradually because of amortization of restructured external debt, CBvS recapitalization bond bullet repayments, and IMF loans.

### Monetary policy, reserves management, and central bank recapitalization
- Monetary stance and indicators:
  - Inflation decline driven by restrictive macro policies, OMOs, and fiscal consolidation.
  - Reserve money–GDP close to historical average; private sector credit growth contracted.
  - Interbank market functions poorly; some banks hold large precautionary liquidity buffers.
- FX market and operational reforms:
  - Electronic FX trading expected to be launched in September to improve transparency, liquidity and price discovery.
  - FX trading platform and CBvS FX auction platform to improve efficiency and transparency; regulations updated to be consistent with Article VIII and new MCP policy.
- Central bank recapitalization plan:
  - Plan finalized as a prior action; binding timeline to complete recapitalization before end of program; successful implementation required by the new Central Bank Act.
  - CBA capitalization requirements: CBvS capital must be equal to SRD 1 billion, fully paid; reserve fund target SRD 8.4 billion to achieve combined capital and reserve fund at least equal to 6 percent of financial assets.
  - Part 1: drawdown SRD 1 billion capital injection on central government deposits by end-2024.
  - Part 2: reserve fund met through issuance of marketable T-bonds by the government.
  - Consolidated loan IV: restructured CBvS claims face value SRD 8.4 billion; term 30 years; principal repayments start in 2025; interest 9 percent per year; secured by Staatsolie dividends and other revenue streams.

### Banking sector risks, recapitalization, and supervisory measures
- System indicators and risks:
  - Liquid assets comprise 53.5 percent of total assets (liquidity skewed toward two systemic banks).
  - NPLs 7.2 percent of loans at end-May 2024 (decline relative to end-2023).
  - Reported capital adequacy for the banking system: 21.8 percent as of May 2024.
  - Banks with capital shortages account for 5.4 percent of total banking sector assets.
- Recapitalization and supervisory actions:
  - Banks with capital shortages submitted recapitalization plans; expected to reach CET1 minimum by end-2024 and CAR by end-2026.
  - Quarterly interim CET1 and CAR targets in place; CBvS to escalate prompt corrective actions if interim targets are not met.
  - Any public support to private banks should have strict conditionality, minimize cost, enhance public confidence, and provide clear exit strategy.
  - New governance framework for government-owned banks; recapitalization of state-owned bank scheduled for 2025 following governance and audit reforms.
- Financial sector reforms:
  - Operationalize bank resolution framework through issuance of regulations and guidelines.
  - Strengthen supervision of non-bank financial institutions and monitor interconnectedness with the banking system.
  - Implement deposit insurance, credit reporting, and enhance AML/CFT supervision.

### Program monitoring, performance criteria modifications, and data/reporting
- Staff proposes modest adjustments:
  - Modestly adjust QPCs on NIR and NDA for remainder of 2024 to align with revised macro-framework.
  - Add a continuous IT on non-accumulation of new domestic debt arrears by the Central Government.
  - Remove QPC on collecting mineral revenues in SRD as authorities discontinued the practice from July 1, 2024 and will collect mineral revenues in foreign currency.
  - Exception for Staatsolie borrowing to finance block 58 equity: proposed carve-out from the continuous PC on zero collateralized borrowing (DSA ¶6).
- Reporting and data requirements (selected):
  - Weekly reporting of CBvS foreign reserves and FX cash flows.
  - Monthly CG operations (GFS) within six weeks; CG debt stocks within four weeks; balance sheet of CBvS within two weeks.
  - Daily/weekly templates and bank supervision reporting per Enhanced Supervision framework.
  - Quarterly FSIs within 60 days and detailed BOP within 60 days after quarter-end.
- Program monitoring outcomes and QPCs:
  - All monetary QPCs and base money IT for June 2024 met.
  - Primary fiscal balance target missed end-June 2024 but corrective measures (EBS return of overpayment and future remittances) implemented.

### Risks, policy priorities, and staff recommendations
- Downside risks:
  - Policy implementation challenges due to capacity constraints and potential intensified social and political pressures ahead of elections.
  - Materialization of credit losses in banks could create deposit outflows and trigger financial instability.
  - Main external risk: worsening terms of trade (e.g., higher oil prices and/or lower gold prices).
- Near-term policy priorities (selected):
  - Reinforce planned fiscal consolidation while protecting the vulnerable.
  - Phase out electricity subsidies and strengthen tax administration to create fiscal space for higher social assistance and infrastructure spending.
  - Fully implement the social assistance reform plan to make programs more efficient and effective.
  - Strengthen commitment controls and address cash management weaknesses to contain public spending and prevent supplier arrears accumulation.
  - Timely implementation of recapitalization plans for banks failing regulatory capital to bolster financial sector resilience.
  - Implement central bank recapitalization to strengthen operational and financial autonomy.
  - Persevere with structural reforms to strengthen institutions, address governance weaknesses, build climate resilience, and improve data quality.
  - Continue capacity development support from the Fund and other development partners.
- Staff appraisal and recommendations:
  - Strengthen coordination between SDMO, MoFP, and CBvS for timely domestic debt servicing and a consistent debt management strategy.
  - Ensure timely completion of bank recapitalization plans and prudent monitoring of capital adequacy, liquidity, and asset quality.
  - Improve risk-based supervision of non-bank financial institutions and operationalize bank resolution framework.
  - Continue strengthening AML/CFT to preserve correspondent banking relationships.
  - Establish a Treasury Single Account and transfer funds to the CBvS to improve liquidity forecasting.
  - Operationalize the sovereign wealth fund and set clear fiscal rules to ensure prudent use of future oil proceeds.

*Source: SURINAME — SEVENTH REVIEW UNDER THE EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY, EXECUTIVE SUMMARY and selected sections (1surea2024004-print-pdf).*

### 19.1 million or about USD 25.8 million would be for budget support.

### SURINAME — SEVENTH REVIEW UNDER THE EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY, REQUESTS FOR MODIFICATION OF PERFORMANCE CRITERIA, WAIVER OF NONOBSERVANCE OF A PERFORMANCE CRITERION, AND FINANCING ASSURANCES REVIEW

### Executive summary and program status
- Date and decision:
  - Washington, DC – September 18, 2024: The Executive Board completed the seventh review under the EFF arrangement for Suriname.
  - Completion of the review allows the authorities to draw the equivalent of SDR 46.7 million (about USD 63 million), bringing total program disbursement to SDR 337.1 million (about USD 455 million).
  - The Executive Board approved a waiver of non-observance of the end-June 2024 performance criteria on the central government primary balance based on corrective actions already taken.
- Program scope:
  - The EFF arrangement was approved on December 22, 2021, in an amount equivalent to SDR 472.8 million (366.8 percent of quota).
  - Program objectives: restore macroeconomic stability and debt sustainability; protect the poor and vulnerable; upgrade monetary and exchange rate policy framework; address banking sector vulnerabilities; advance anti-corruption and governance reforms.

### Macroeconomic outcomes and indicators
- Growth and activity:
  - Growth is estimated at 2.1 percent in 2023.
  - Growth should reach around 3 percent in 2024.
  - It is expected to take several years for real activity to return to its pre-pandemic level.
- Inflation and reserves:
  - Headline inflation fell to 16.2 percent y-o-y in June.
  - Inflation is expected to continue falling to 12.7 percent y-o-y by end-2024.
  - Usable international reserves now stand at close to 6 months of imports (125 percent of the ARA metric).
- Financial markets and investor confidence:
  - International bond spreads are at record lows; spreads have fallen to the lowest levels on record.
  - Donor support and investor confidence are increasing.
- Banking and financial sector:
  - Efforts to improve oversight have put banks on a path to a stronger capital position, while important financial system vulnerabilities remain.

### Program implementation and performance criteria
- Compliance and corrective action:
  - The authorities missed the end-June primary balance target due to an overpayment to the electricity company (EBS); the overpayment has subsequently been returned to the state budget (prior action for completion of this review).
  - All other quantitative targets were met.
  - Latest data indicate the end-March target on social assistance spending (reported as missed in the last review) was also met.
- Specific measures taken to restore compliance:
  - As corrective action, EBS returned the May–June overpayment to the state budget.
  - The authorities mandated that EBS remit to the budget each month starting August 2024 additional revenues (about SRD 250 million or 0.15 percent of GDP) collected from recent electricity tariff increases.
  - The authorities are taking steps to further mobilize revenues to keep the end-year primary balance target within reach.
- Institutional and structural benchmarks:
  - A time-bound recapitalization plan for the CBvS has been finalized (prior action).
  - The end-June structural benchmark (SB) requiring all line ministries to report each month the stock of arrears to the MoFP was met ahead of schedule in May.
  - Continuous SB on publishing the quarterly budget execution report and an end-June SB mandating all importers/exporters use a Fiscal Identification Number were met.
  - The SB on publishing on the CBvS’ website the FY 2021 audited IFRS financial statements (end-June 2024 SB) was implemented with delay in August.
  - The SB on launching the FX trading platform (end-September 2023 SB) is expected to be implemented with delay in September 2024.
  - Progress is being made to introduce quarterly expenditure ceilings for line ministries with full implementation expected by end-September.
  - Enactment of the new procurement law is expected by end-September.
  - The end-June 2024 SB on amending the Anti-Corruption legal framework to criminalize acts of corruption was not met but is expected to be implemented by end-November.

### Risks and policy priorities
- Downside risks:
  - Policy implementation challenges given binding capacity constraints and potential for intensified social and political pressures in the run-up to the election.
  - Materialization of credit losses in banks could create deposit outflows and trigger financial instability.
  - Main external risk: worsening in the terms of trade (notably from materially higher oil prices and/or lower gold prices).
- Near-term priorities (as stated by IMF Deputy Managing Director, Acting Chair):
  - Reinforce planned fiscal consolidation while protecting the vulnerable.
  - Phase out electricity subsidies and strengthen tax administration to create fiscal space for higher social assistance and infrastructure spending.
  - Fully implement the recently finalized social assistance reform plan to make social programs more efficient and effective.
  - Strengthen commitment controls and address weaknesses in cash management to contain public spending and prevent accumulation of supplier arrears.
  - Timely implementation of recapitalization plans for commercial banks that do not meet regulatory capital requirements to bolster financial sector resilience.
  - Implement the recently-finalized plan for central bank recapitalization to strengthen central bank operational and financial autonomy.
  - Persevere with structural reforms to strengthen institutions, address governance weaknesses, build climate resilience, and improve data quality.
  - Continued capacity development support from the Fund and other development partners.

### Program outlook, debt restructuring, and external financing
- Debt treatment and market access:
  - The debt restructuring process is nearing completion: bilateral agreements with all official creditors and most commercial creditors have been achieved.
  - Domestic debt arrears have been cleared.
  - Authorities are in active negotiations with remaining commercial creditors (which make up 4 percent of external debt), offering the same terms as agreed with other creditors.
  - Authorities have started negotiations with bilateral creditors on the second stage of debt treatment involving stock treatment.
- Funding note cited in the document:
  - "19.1 million or about USD 25.8 million would be for budget support." (text preserved exactly as in source)

### Oil scenario and medium-term upside risks (Box 1)
- Scenario assumptions and investment:
  - Hypothetical FID on block 58 by end-2024; oil production expected to begin by 2028.
  - Total project investment of USD 12 billion with pre-investment flows starting at end-2024.
- Production and growth implications:
  - Oil production peaking at 73 million barrels in 2030 and 2031 before tapering off.
  - Growth will begin to pick up as early as 2025, reaching a peak of about 78 percent in 2028.
  - Non-oil GDP growth stabilizing at 5 percent over the long term.
- Fiscal and external impacts:
  - The government’s take from oil revenue is based on royalty payments, corporate income taxes and terms of the production sharing contract.
  - Part of new oil revenue is expected to be used to pay down debt obligations per the Value Recovery Instrument (VRI).
  - The value of oil exports will peak in 2029 with an increase of about 47 percentage points of GDP relative to the baseline.
  - Oil revenue expected to rise to a high of about 22 percent of GDP in 2033.
  - The value of oil revenues tied to payments of debt in the VRI amounts to an average of about 1.4 percent of GDP annually in 2028-2031.
  - Gross international reserves (GIR) are expected to increase to 109 percent of GDP by 2035.
- Cautionary note:
  - The successful development is a major upside risk but requires caution to prevent misallocation of proceeds and Dutch Disease–type dynamics.

*Source: SURINAME — SEVENTH REVIEW UNDER THE EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY, EXECUTIVE SUMMARY and selected sections (as provided).*

### 1. Primary fiscal balance (cash basis) of central government (floor)MetNot MetMetNot MetMetNot MetNot Met

### 1. Primary fiscal balance (cash basis) of central government (floor)MetNot MetMetNot MetMetNot MetNot Met

### Fiscal sustainability and policy measures
- Authorities committed to the 2024 budget target: a primary central government surplus of 2.8 percent of GDP.
- Wage bill: maintain the wage bill at 6.8 percent of GDP in 2024; expedite removal of unregistered workers and chronically absent civil servants from public payrolls.
- VAT and tax administration:
  - 60 percent of the consumption basket taxed at the standard 10 percent rate.
  - New 5 percent rate introduced on water, electricity and cooking gas in June 2024.
  - Over 4,300 taxpayers registered for VAT by July 2024.
  - Refund arrears are gradually being cleared; efforts to improve compliance via penalties and interest for late filing and payment of tax.
  - Fiscal identification numbers mandatory for all importers and exporters to facilitate cross-matching of data.
  - Strengthening the Tax Department, including the Large Taxpayer Unit; intend to recruit 25 new staff for the Tax Department by end-November.
- Fuel and non-tax revenue measures:
  - Fuel prices determined by an automatic pricing mechanism; specific taxes on fuel reimposed and increased (expecting to generate 0.8 percent of GDP in revenues in 2024).
  - Increased leasing fees for government land, allowed purchase of government land under lease, increased rates for air navigation services—estimated to bring 0.3 percent of GDP in revenues in 2024.
- Electricity and energy subsidies:
  - Average electricity tariffs increased by more than 80 percent since start of 2023; tariffs for commercial users reached cost recovery in June 2024.
  - Further household tariff increases of 7 percent scheduled for September and November.
  - Low- and middle-income households receive discounts proxied by electricity consumption; discounts to be phased out once a more effective cash transfer program is in place.
  - LPG prices increased by 27 percent by June; subsequent increases will ensure the subsidy is fully eliminated by September 2026.
- Cash transfers and social spending:
  - Cash transfers increased by 0.4 percent of GDP in 2023 and a further bonus paid in January.
  - End-March and end-June IT on social assistance spending were met; revised data shows IT on social spending reported as not met at the 6th review was actually met.
  - Monthly report to be published on households/individuals covered by each social program and average value of cash transfers.
- Capital spending and major projects:
  - Capital expenditure expected to increase to 3.3 percent of GDP in 2024; climate resilience integrated into appraisal and selection of capital projects.
  - Discussing a new bridge with Guyana; Suriname’s share of the cost would amount to 3.5 percent of GDP (project at preliminary evaluation stage; any expenditure anticipated to be met within existing medium-term budget envelope).
  - Staff caution on fiscal risks of large infrastructure projects given limited fiscal space and likely low economic and societal returns.
- Contributions to fiscal adjustment (selected figures from analytical table):
  - Annual change of Primary Balance: 1.6 0.3 0.2 1.4 1.6 0.8 0.7 4.0 4.0 (table format preserved in source).
  - Adjustment from Policy Changes: 0.5 4.4 4.2 2.9 2.6 1.2 1.5 8.9 9.0 (table format preserved in source).
  - Primary Balance: 1.0 1.3 2.8 3.5 (memo).

### Debt, arrears, and financing needs
- Gross financing needs (GFNs) elevated in 2024 due to clearance of past arrears but remain within program limits.
- Program parameters for GFN: under 12 percent of GDP in any year, and under 9 percent on average over the medium- to long-term.
- Public debt:
  - Public debt expected to fall below 70 percent by 2027.
  - Suriname’s debt judged to be sustainable on a forward-looking basis (Annex I).
  - Recent real effective exchange rate (REER) appreciation has pushed down debt service and debt levels given most public debt is denominated in foreign currency.
- Clearance of domestic arrears and prevention of new arrears:
  - Legacy debts to the CBvS restructured into a new loan; advances from the CBvS to the central government repaid.
  - All domestic debt arrears cleared except a small amount of disputed arrears currently being audited.
  - Flow in other accounts payable stood at 1.1 percent of GDP in July.
  - Stock of VAT refund arrears was 0.5 percent of GDP.
  - Reconciled data: end-2023 stock of SRD 5.2 billion; includes legacy arrears of SRD 0.48 billion and VAT refund arrears of SRD 0.809 billion.
  - Authorities committed to paying all domestic debt obligations on time, pay VAT refunds arrears by end-2024, and gradually clear all verified other accounts payable by end-2027.
  - Line ministries to report outstanding arrears monthly, subject to quarterly expenditure ceilings starting in Q4, and required to receive prior authorization before signing contracts; government will not be legally responsible for contracts without such prior authorization.
- Institutional and fiscal governance strengthening measures:
  - Build capacity at the debt management office to improve recording, reporting, and timely payment of external and domestic public debt.
  - Strengthen quality and consistency of quarterly budget execution reports.
  - Ensure Minister of Finance has authority to access all bank accounts held by government entities at commercial banks.
  - Establish a treasury single account for a subset of line ministries (end-Jan 2025 SB).
  - Implement the procurement law.
  - Publish a report quantifying principal fiscal risks faced by the largest state-owned enterprises.
  - Starting with next year’s budget, include budgetary allocations for electricity, water, and fuel payments for each ministry and seek to eliminate intra-SOE settlements.

### Monetary policy and inflation
- Inflation trends and policy stance:
  - Inflation continues to fall as a result of restrictive macroeconomic policies.
  - Limits on growth of the monetary base (supported by ongoing open market operations) and a reduction in the fiscal deficit have resulted in a decline in inflation.
  - Reserve money-GDP close to historical average; private sector credit growth has contracted indicating relatively tight liquidity conditions.
  - To anchor inflation expectations, current reserve money targets should be maintained while monitoring credit developments.
- Interbank market and policy transmission:
  - Interbank market functions poorly; some banks maintain large precautionary liquidity buffers which hampers transmission of monetary policy to short-term interest rates.
  - Recommendation: central bank should allow term deposits and all instruments issued by the central bank to be used as collateral for CBvS liquidity facilities; encourage use of government paper as collateral.
  - Simplify two separate systems for holding reserves at the CBvS and implement the Treasury Single Account by moving government balances to the central bank.
  - Fund providing capacity development (CD) to support transition to a price-based monetary policy framework and eventually to inflation targeting.
- FX market and reserves management:
  - Electronic FX trading expected to be launched in September to improve market transparency, liquidity and price discovery.
  - Both FX trading platform and central bank’s FX auction platform will improve efficiency and transparency; regulations updated to be consistent with Article VIII obligations and new MCP policy.
  - CBvS working to strengthen FX reserves management and operations; Fund has provided CD on FX reserves management and operations.

### Banking sector risks and recapitalization
- System liquidity and NPLs:
  - Banking system remains liquid; liquid assets comprise 53.5 percent of total assets (liquidity skewed toward two systemic banks).
  - Nonperforming loans (NPLs) 7.2 percent of loans at end-May 2024 (decline relative to end-2023).
  - CBvS assessing banks’ NPL resolution plans; guidance to be provided case-by-case.
- Recapitalization and solvency:
  - Reported capital adequacy for the banking system is 21.8 percent as of May 2024.
  - Banks with capital shortages account for 5.4 percent of total banking sector assets; they have submitted recapitalization plans and are expected to reach regulatory minimum for common equity tier one (CET1) by end of 2024 and capital adequacy (CAR) by end of 2026, respectively.
  - Quarterly interim CET1 and CAR targets in place for these banks; CBvS should continuously assess solvency and escalate prompt corrective actions if interim targets are not met.
  - Any public support to private banks should have strict conditionality, minimize cost, enhance public confidence, and provide a clear exit strategy for the government.
  - New governance framework for government-owned banks to ensure fully commercial operations; recapitalization of the state-owned bank scheduled for 2025 following governance and audit reforms.
- Market functioning and instruments:
  - Decline in interest rates on central bank instruments could prompt banks to expand lending to the private sector—requires careful monitoring of loan portfolios and risk management systems.
  - CBvS’ standing lending and intraday facilities exist but are underused; banks often borrow bilaterally through FX/SRD swaps.

### Foreign exchange cash flows and reserves projections (selected figures, Millions of USD)
- Inflow of FX (CBvS and Central Government) total: 2,513
  - Government mineral and other FX revenues (subtotal shown in table): 1,011
  - IFI financing (budget support) 65 (row indicates 200 190 150 255 65 but preserve table presentation in source)
  - IMF financing row totals reflected in table: 580
  - Other (incl. project financing) row totals reflected in table: 411
- Outflow of FX (CBvS and Central Government) total: 1,857
  - Debt service (row subtotal in table): 995
  - Other FX outflows (incl. use of project financing) row subtotal in table: 707
  - PBOC swap reversal: 154,000 (as shown in table row)
- Change in Gross Foreign Reserves of CBvS (+: Increase): 404
- Notes from table: values presented are from CBvS and IMF staff estimates; direct FX sale by the central government to fuel importers in February 2023 noted in table footnote.

*Source: 1surea2024004-print-pdf - 1. Primary fiscal balance (cash basis) of central government (floor); canonical URL: https://www.imf.org/-/media/files/publications/cr/2024/english/1surea2024004-print-pdf.pdf*

### 18.      To strengthen central bank governance, the CBvS’ Council and Executive Board have

### 1surea2024004-print-pdf - 18.      To strengthen central bank governance, the CBvS’ Council and Executive Board have

### Central bank governance and recapitalization
- The CBvS’ Council and Executive Board have been fully constituted and efforts continue to establish a regular cycle for external audits.
- FY2021 financial statements were published in August 2024 and FY 2022 financial statements are expected to be published this year (end-September SB, proposed to be reset to end-December 2024).
- The MoFP and CBvS have finalized a plan to recapitalize the central bank (a prior action for completion of the review).
- The plan outlines a binding timeline to complete the recapitalization before the end of the program; successful implementation is required by the new Central Bank Act.

### Governance reforms and anti-corruption measures
- By end September, the authorities expect to enact amendments to the anti-corruption legal framework to criminalize acts of corruption in line with Chapter III of the UN Convention against Corruption (end-June SB, proposed to be set as a new structural benchmark for end-November 2024).
- The amendments are expected to require:
  - (i) income and asset declarations of politically exposed persons;
  - (ii) a routine verification of these declarations;
  - (iii) publication of income and asset declarations; and
  - (iv) establishing proportionate and dissuasive sanctions for non-compliance (end-September SB, proposed to be reset to end-November 2024).
- The new procurement law expected to be enacted in September will require publication of all tenders and contract awards, all procurement contracts, the names of the awarded entities and their beneficial owners, the names of the public officials awarding the contracts, and an ex-post validation of delivery of the contracted services.
- The government enacted in November 2022 a new AML/CFT law to bring it in line with international standards. Further amendments to the AML/CFT were approved by parliament in July 2024.
- To fully comply with CFATF requirements, Suriname needs to:
  - (i) enhance AML/CFT supervision for all financial institutions;
  - (ii) develop and implement risk based supervisory framework for Designated Non-Financial Businesses and Professions (DNFBPs);
  - (iii) make available adequate human, financial, and technological resources to the Financial Intelligence Unit;
  - (iv) increase ML/TF related investigations, prosecutions and confiscations; and
  - (v) amend the International Sanctions Framework to update the legal framework in relation to the implementation of the UN Security Council Resolutions on Terrorism and Proliferation Financing.
- Work is underway in these areas and a new national risk assessment is planned for mid-2024.

### Improving the quality and dissemination of economic statistics
- Progress is being made in improving the quality and timeliness of monetary, fiscal, financial and balance of payment statistics.
- The authorities have increased the budget of the statistics office, but further efforts are needed to improve the production and timeliness of GDP statistics and provide more disaggregated data on consumer prices.
- Ongoing IMF technical assistance by STA to improve national accounts statistics, government finance statistics, and on tracking and estimating other accounts payable with suppliers and its arrears.
- CARTAC is supporting the authorities in improving their annual estimates of expenditure-based GDP.
- CD missions are planned to support development of supply and use tables to compare and enhance compilation of both expenditure-based GDP and activity-based GDP.

### Program issues: conditionality and adjustments
- Staff proposes modifications to program conditionality:
  - To modestly adjust the QPCs on NIR and NDA for the remainder of 2024 to align them with revisions in the macro-framework.
  - To add a continuous IT on non-accumulation of new domestic debt arrears by the Central Government.
  - To remove the QPC on collecting mineral revenues in SRD as the authorities have discontinued the practice starting July 1, 2024, and will now collect all mineral revenues in foreign currency.
  - Should the FID materialize, state oil company (Staatsolie) would need debt financing to exercise its option; it is proposed to carve issuance of such debt from the continuous PC on zero collateralized borrowing (DSA ¶6).
- Definition: Domestic debt arrears for program monitoring purposes are defined as domestic debt obligations of the central government owed to commercial banks, Central bank, non-bank financial institutions (pension, insurance, and non-depository banks) and non-financial sector (suppliers and other private sector), which either have not been paid within 30 days after the contractual due date or within the contractual grace period, whichever is longer.

### Access, capacity to repay, and financing
- Suriname’s capacity to repay is assessed as adequate under the program baseline but subject to significant risks; successful implementation of the program is critical to mitigate these risks.
- Fund credit outstanding will peak in 2025 at 50 and 12 percent of usable reserves and GDP, respectively, and will remain elevated through 2030 (Table 11).
- Annual debt service to the Fund peaks in 2029 at 4 percent of exports of goods and services.
- Out of the SDR 46.7 million scheduled for the seventh review, SDR 19.1 million (41 percent) would be made available for budget support.
- Staff assess that good faith efforts are being made to reach a collaborative agreement with the remaining private external creditors; these creditors are not deemed a holdout risk and the arrears do not undermine medium-term external viability.
- Suriname’s program continues to be fully financed with firm commitments of financing for the next 12 months and good prospects for adequate financing for the remaining program period.
- IDB commits to providing budget support of at least USD 150 million in 2024 conditional on the IMF program review and its own conditionality. The CDB will provide USD 25 million in budget support in 2025. Other IFIs commit to disbursing agreed project loans conditional on the IMF program review and their own conditionality.

### Program financing table highlights (in millions of US dollars)
- Financing gap: 237 421 307 398 871 1,450
- Official financing: 342 533 083 988 71,079
- O/w: IMF: 345 315 824 862 554
- Purchases: 555 315 824 862 575
- O/w: for budget support: 555 310 310 226 338
- Repurchases: 210 000 21
- O/w: IFIs: 0 200 150 150 255 25
- Financing from external arrears accumulation (net): 203 168 -100 371

(Note: table entries are presented exactly as in source.)

### Staff appraisal and policy recommendations
- Authorities have fully eliminated fuel subsidies, are gradually phasing out electricity and gas subsidies, are removing unregistered and chronically absent employees from the public payroll and broadened the VAT base.
- Social assistance spending targets have been met for two consecutive reviews.
- Authorities finalized the CBvS’ recapitalization plan.
- After missing the end-June primary fiscal target, corrective actions were taken: an overpayment to the electricity sector was returned to the state budget, returning the fiscal position back on track to meet the end-year primary balance target. The electricity company (EBS) will remit directly to the state budget resources from recent electricity tariff increases.
- Authorities are improving public financial management, hiring qualified civil servants, improving procurement processes, introducing quarterly expenditure ceilings for each line ministry, strengthening cash management, and putting steps in place to avoid future accumulation of arrears.
- Debt restructuring is in its final phase: negotiations with the Paris Club for the second phase of their debt treatment are scheduled for end-September and discussions with the remaining small group of private external creditors are ongoing.
- Recommendations and priorities:
  - Strengthen coordination between SDMO, the MoFP, and CBvS for timely processing of domestic debt service payments and a consistent, well-communicated debt management strategy to increase access to domestic issuance.
  - Ensure timely completion of recapitalization plans of banks with capital shortages and prudent monitoring of capital adequacy, liquidity and asset quality.
  - Improve risk-based supervision and increase monitoring of non-bank financial institutions, particularly their interconnectedness with the banking system.
  - Operationalize the bank resolution framework through issuance of relevant regulations and guidelines.
  - Continue strengthening AML/CFT to support financial system integrity and prevent potential loss of corresponding banking relationships.
  - Improve banks’ understanding of access to CBvS liquidity facilities and expedite bank requests for liquidity support to reduce precautionary balances.
  - Establish a Treasury Single Account and transfer funds to the central bank to improve liquidity forecasting.
  - Operationalize the sovereign wealth fund and set up clear fiscal rules to ensure prudent use of future oil proceeds for social infrastructure, equitable standards of living improvements, and long-term growth.

*Source: CBvS and IMF staff calculations as presented in the provided content.*

### 33.      Staff supports the authorities’ request for the completion of the seventh review under

### Staff supports the authorities’ request for the completion of the seventh review under the EFF arrangement

### Program support and reviews
- Staff supports the authorities’ request for the completion of the seventh review under the EFF arrangement and the completion of the financing assurances review.
- Staff supports the authorities’ request for the modification of a performance criterion and the request for waiver for the nonobservance of a performance criterion.
- Implementation of prior actions is cited as signaling authorities’ commitment to successful program implementation.

### Authorities’ commitment and policy actions
- Authorities are described as committed "at the highest level to restoring macroeconomic and financial stability."
- The request for modification and waiver is supported "in view of the commitments made by the Surinamese authorities and the significant policy efforts made to date coupled with corrective actions taken."

### Key fiscal figures (central government, selected annual amounts in SRD millions)
- Revenues: 16,010; 24,021; 34,758; 43,184; 42,617; 49,948; 47,815; 53,501; 59,111; 63,845; 68,978.
- Taxes: 11,831; 16,649; 21,976; 28,171; 27,948; 32,894; 30,948; 34,993; 38,077; 41,376; 45,273.
  - Direct taxes: 8,137; 11,126; 12,212; 14,635; 14,986; 16,806; 15,557; 17,810; 18,936; 20,458; 22,704.
  - Indirect taxes: 3,693; 5,523; 9,765; 13,536; 12,961; 16,087; 15,391; 17,183; 19,141; 20,918; 22,570.
- Non-tax revenues: 4,039; 7,285; 12,407; 14,570; 14,226; 17,055; 16,867; 18,508; 21,034; 22,469; 23,705.
  - Mineral resource revenues: 2,864; 5,706; 8,500; 8,925; 9,116; 10,565; 11,081; 12,161; 14,161; 15,046; 15,685.
- Expenditures: 19,465; 26,427; 36,943; 44,754; 43,556; 50,018; 47,650; 53,304; 58,952; 63,320; 67,992.
- Primary expenditures: 16,339; 23,099; 33,016; 38,571; 38,004; 43,090; 41,233; 46,136; 50,975; 55,056; 59,483.
- Interest: 3,126; 3,329; 3,928; 6,183; 5,553; 6,928; 6,416; 7,167; 7,977; 8,264; 8,509.
- Overall balance (net lending/borrowing): -3,455; -2,406; -2,185; -1,570; -939; -701; 651; 971; 605; 249; 86.
- Primary balance: -329; 923; 1,742; 4,613; 4,613; 6,859; 6,582; 7,364; 8,137; 8,788; 9,495.

### Selected macroeconomic and fiscal ratios and projections
- Public (central government) debt (SRD millions): 70,344; 104,627; 124,823; 146,777; 140,046; 160,628; 147,777; 153,676; 158,740; 162,604; 163,887.
- Non-resource balance (memo): -10,821; -13,440; -18,087; -18,802; -18,750; -20,181; -19,234; -21,674; -23,988; -25,313; -26,959.
- Non-resource primary balance (memo): -7,695; -11,853; -13,925; -12,496; -13,197; -12,986; -12,818; -14,507; -16,011; -17,049; -18,450.

### External sector and reserves (selected indicators)
- Staff supports completion of the financing assurances review alongside the seventh review.
- Official financing (memo, percent of GDP): 1.1; 7.0; 8.2; 9.2; 8.1; 1.9; 1.8; 0.2; -0.4; -1.0; -1.5.
- Gross international reserves (USD millions, memo): 992; 1,195; 1,346; 1,355; 1,373; 1,390; 1,396; 1,412; 1,424; 1,431; 1,436.
- Usable gross international reserves (USD millions, memo): 512; 865; 1,112; 1,121; 1,139; 1,156; 1,162; 1,177; 1,189; 1,197; 1,202.
- Current account balance (percent of GDP, memo): 5.7; 2.1; 3.9; 3.0; 1.8; 2.5; 1.6; 1.5; 1.3; 1.2; 1.1.
- External arrears (net): 6.6; 4.6; 0.0; 0.0; 0.0; 0.0; 0.0; 0.0; 0.0; 0.0; 0.0.

### Monetary and inflation highlights (selected)
- Consumer prices (period average): 59.1; 52.4; 51.6; 20.7; 19.1; 14.8; 12.8; 9.6; 7.4; 5.0; 5.0.
- Consumer prices (end of period): 60.7; 54.6; 32.6; 14.2; 12.7; 11.0; 11.3; 8.2; 6.0; 5.0; 5.0.
- Broad money (percent change): 45.3; 45.1; 19.5; 4.7; 0.2; 11.7; 10.8; 10.0; 9.1; 8.2; 7.9.
- Reserve money (percent change): 48.0; 44.8; 4.9; 7.8; 3.7; 13.1; 11.2; 11.2; 8.8; 7.8; 7.7.

### Projections and outlook (select)
- The document contains multi-year projections across macroeconomic, fiscal, and external accounts through 2029; staff’s support for completing the seventh review and financing assurances review is given against the backdrop of these projections and the authorities’ corrective actions.

*Source: IMF staff report excerpt on Suriname (text and accompanying tables and figures).*

### 1. Gross external financing requirements 8223925444349157691615-14-66

### 1. Gross external financing requirements

### Major aggregates (levels)
- 1. Gross external financing requirements: 8223925444349157691615-14-66
- 2. Sources of financing: 197-77-198-111-18768-3220494931
- 3. Expected change in gross reserves of the CBvS; accumulation (-): -271-68-118-9-27-35-23-15-12-7-5
- 4. Errors and omissions: -81-39-7800000000
- 5. Financing needs -(2-1+3+4): 23742341856356312412412-22-55-92

### Component breakdown of gross external financing requirements (levels)
- A. Current account deficit: -176-76-147-131-87-113-79-78-72-71-68
- B. Public sector debt amortization: 259308166208208141141144243233262
  - (i) Central government: 1592026610810811611694218232260
  - (ii) CBvS: 00000000012
  - (iii) SOEs: 1001071001001002525502500
- C. Other outflows: -1753662281297-50-155-176-260

### Sources of financing (levels and components)
- A. Asset sales (net) (Other investment account): 43366100000000
- B. Foreign direct investment (net): -1243-65-56-148-24-132-135-109-128-160
- C. Portfolio flows (net): 47-19-4600000000
  - (i) Central government: 00000000012
  - (ii) SOEs: 00000000000
  - (iii) Other: 47-19-46000000-1-2
- D. Public sector debt financing: 5579114108123104112105133175190
  - (i) Central government: 5579114108123104112105133175190
  - (ii) SOEs: 00000000000
- E. Other inflows (net): 176-176-263-163-163-11-11502512

### Balance (2-1) excluding expected accumulation of gross reserves; Gap (-) Surplus (+)
- Balance series: 115-315 -223 -555-536-89-1014346398

### Allocation of financing needs (levels)
- (i) Official financing: 34254308401401888812-22-55-92
  - a. IMF: 34541582512516363-13-22-55-92
    - Purchases: 555415825125163630000
    - O/w: for budget support: 565310310310226250000
    - Repurchases: 2100000013225592
  - b. IFIs: 0200150150150252525000
- (ii) External arrears (net): 203168-100000000
- (iii) Financing from external debt restructuring 1/: 1111631633636

### Notes and calculations
- 1/ Calculated as a difference between the debt restructuring scenario and a scenario without debt restructuring.

---

### Projections (percent of GDP)

### 1. Gross external financing requirements (percent of GDP) and components
- 1. Gross external financing requirements: 2.76.60.710.27.13.41.40.30.3-0.2-1.1
- A. Current account deficit: -5.7-2.1-3.9-3.0-1.8-2.5-1.6-1.5-1.3-1.2-1.1
- B. Public sector debt amortization: 8.48.54.44.84.23.12.82.74.44.14.4
  - (i) Central government: 5.25.61.82.52.22.52.31.83.94.04.4
  - (ii) CBvS: 0.00.00.00.00.00.00.00.00.00.00.0
  - (iii) SOEs: 3.22.92.72.32.00.50.51.00.50.00.0
- C. Other outflows: 0.00.20.18.54.62.80.1-1.0-2.8-3.1-4.3

### 2. Sources of financing (percent of GDP) and components
- 2. Sources of financing: 6.4-2.1-5.3-2.6-3.81.5-0.60.40.90.90.5
- A. Asset sales (net) (Other investment account): 1.41.01.60.00.00.00.00.00.00.00.0
- B. Foreign direct investment (net): -4.00.1-1.7-1.3-3.0-0.5-2.7-2.6-2.0-2.2-2.7
- C. Portfolio flows (net): 1.5-0.5-1.20.00.00.00.00.00.00.00.0
  - (i) Central government: 0.00.00.00.00.00.00.00.00.00.00.0
  - (ii) SOEs: 0.00.00.00.00.00.00.00.00.00.00.0
  - (iii) Other: 1.5-0.5-1.20.00.00.00.00.00.00.00.0
- D. Public sector debt financing: 1.82.23.02.52.52.32.32.02.43.13.2
  - (i) Central government: 1.82.23.02.52.52.32.32.02.43.13.2
  - (ii) SOEs: 0.00.00.00.00.00.00.00.00.00.00.0
- E. Other inflows (net): 5.7-4.8-7.0-3.8-3.3-0.2-0.21.00.50.00.0

### Balance (2-1) excluding expected accumulation of gross reserves; Gap (-) Surplus (+) (percent of GDP)
- Series: 3.7-8.7-5.9-12.8-10.9-1.9-2.00.10.61.11.6

### 3. Expected change in gross reserves of the CBvS; accumulation (-) (percent of GDP)
- -8.8-1.9-3.1-0.2-0.6-0.8-0.5-0.3-0.2-0.1-0.1

### 4. Errors and omissions (percent of GDP)
- -2.6-1.1-2.10.00.00.00.00.00.00.00.0

### 5. Financing needs -(2-1+3+4) (percent of GDP)
- 7.711.611.213.011.52.72.50.2-0.4-1.0-1.5

### Allocation by (percent of GDP)
- (i) Official financing: 1.17.08.29.28.11.91.80.2-0.4-1.0-1.5
  - a. IMF: 1.11.54.25.85.11.41.3-0.3-0.4-1.0-1.5
    - Purchases: 1.81.54.25.85.11.41.30.00.00.00.0
    - O/w: for budget support: 1.81.52.72.42.10.60.50.00.00.00.0
    - Repurchases: 0.70.00.00.00.00.00.00.30.41.01.5
  - b. IFIs: 0.05.54.03.53.10.50.50.50.00.00.0
- (ii) External arrears (net): 6.64.60.00.00.00.00.00.00.00.00.0
- (iii) Financing from external debt restructuring 1/: 3.03.83.30.80.70.00.00.00.0

### Sources and note
- Sources: Fund staff estimates and projections.
- Proj. (In percent of GDP)

---

### Selected monetary and financial indicators (excerpted values)

### Monetary survey (Millions of SRD and USD conversions where shown)
- Broad money: 19,26931,79346,18567,01680,10383,88280,27893,67888,974
- Net foreign assets: 5,86711,67423,82747,47368,77872,48169,84279,19177,430
  - Net international reserves (Held by the CBvS): 4,3457,90520,72736,87645,62445,13541,64647,82043,582
- Credit to the private sector: 7,3109,29911,01918,25521,64125,91724,74530,46629,420
- Reserve money: 9,59312,81718,96727,47028,81631,06129,89235,11533,236

### Central Bank (CBvS) key items (levels)
- Net foreign assets: 2,3944,03911,26628,02035,43933,83131,48135,34232,756
- Net international reserves (USD millions reported): 23415315515410095959594
- Gross International Reserves: 4,7908,19920,73037,93448,85254,78550,45360,08854,377
  - (In USD millions): 6485859921,1941,3461,3561,3731,3521,396
- SDR allocations: -901-1,779-6,189-8,947-10,305-11,454-10,301-12,642-10,970

### Memorandum and ratio items (selected)
- Velocity (GDP/broad money; end of period): 1.61.21.31.31.72.02.02.12.1
- Broad money (Percent of GDP): 60.782.176.074.958.050.049.147.847.3
- Credit to private sector (Percent of GDP): 23.024.018.120.415.715.415.115.515.6

---

### Financial Soundness Indicators (selected, In percent)

### Capital adequacy and leverage
- Regulatory capital to risk-weighted assets: 9.611.411.814.516.818.418.720.321.621.8
- Regulatory Tier 1 capital to risk-weighted assets: 9.010.810.513.115.517.316.718.419.920.2
- Tier 1 capital to total assets (leverage ratio): 4.94.94.35.76.17.47.17.78.38.7

### Asset quality and liquidity
- NPL to gross loans: 12.010.614.612.812.416.114.313.010.47.2
- Provisions to total NPLs: 61.660.546.0...39.935.7........
- Liquid assets to total assets: 40.246.851.558.854.352.353.753.654.253.3
- Liquid assets to short-term liabilities: 82.193.4101.3117.0114.0102.7106.7102.6103.699.8

### Earnings and sensitivity
- Return on assets (ROA, annualized): 0.11.02.01.82.71.22.02.70.71.0
- Return on equity (ROE, annualized): 1.916.734.829.644.816.027.436.59.313.2
- Net open positions in foreign currency to capital 1/ (percent): 22.211.520.839.423.221.016.820.617.722.6
- Foreign currency liabilities to total liabilities: 66.560.969.271.674.175.075.373.371.869.0

---

### Program monitoring and Fund engagement (selected)
- Board Approval of the Extended Arrangement: 12/22/2021 — 39.430.6 (Availability Date / Millions of SDR / Percent of Quota format shown in table)
- Prospective Drawings (SDR): 39.4 (2022); 118.2 (2023); 186.946.8 (2024); subsequent years reported as 0.0
- Outstanding Credit (eop, SDR): 78.8197.0 383.9430.7 420.9 404.4363.8295.9224.2152.490.435.13.9
- Gross International Reserves (US$ million) (selected): 1,1951,3461,3731,3961,4121,4241,4311,4361,4261,3791,2941,2021,101

---

*Source: IMF staff estimates and projections; extracted from the provided IMF PDF tables and notes.*

### 2. New natural resource revenue-collateralized debt contracted by or on behalf of the central government

### 2. New natural resource revenue-collateralized debt contracted by or on behalf of the central government and/or SOEs (continuous ceiling) (U.S. dollars)

### Quantitative performance criteria — fiscal/debt targets (selected entries)
- New natural resource revenue-collateralized debt contracted by or on behalf of the central government and/or SOEs (continuous ceiling) (U.S. dollars):  
  - Reported entries include "0", "00", "0Met", "0Met0", "00Met", "000", "0000" across reporting dates and columns.
- New central government guaranteed debt (continuous ceiling): entries reported as "00Met", "00Met00Met", "0", "000", "0000".
- Non-accumulation of central government external debt arrears (continuous ceiling) (millions of U.S. dollars): entries include "00Met", "04Not Met", "00Met00Met", "000", "00", "000".

### Monetary targets (selected entries)
- Gross credit to the central government by the central bank (continuous ceiling): reported values include "00Met", "0", "00", "-1,042.3", "-1,042", "-1,661.8", and repeated "0" entries with "Met" status.
- Net international reserves of the central bank (floor) (millions of U.S. dollar): reported series include:
  - "194169204Met196150179Met226313332Met"
  - "-57-38-31Met-55-32-26Met-54-28-28Met"
  - "-53-39-21Met-57-39 5Met-73-61-7Met-6 22152Met"
  - "-7-10-14Not Met-25-1-2Not Met-65-19-22Not Met"
  - "-29-11-29Not Met-14-34-45Not Met-96-58-42Met"
  - "-122 -74-45Met -137-171-179-184-194 -258-241"
- Net domestic assets of the central bank (ceiling) (2/): reported values include:
  - "-1,193", "-845-111 Not Met -1,063-425 435 Not Met -1,332-2,548-1,080 Not Met"
  - "3,6023,3342,376Met4,0063,6833,843Not Met4,3974,0302,776Met"
  - "3,8923,7032,448Met4,2143,9672,995Met4,7224,5543,743Met4,1213,7331,986Met"
  - "454494378Met1,041702855Not Met1,4237731,346Not Met"
  - "1,0668041,209Not Met9801,2671,401Not Met2,2771,7471,282Met"
  - "2,7812,1051,766Met2,6363,7073,7543,9214,2485,1834,869"
- Direct purchases/sales of FX by the central bank and/or central government from/to SOEs and private sector (millions USD) (continuous ceiling): multiple entries reported as "00Met", "0Met", "000Met", "00", and "000".

### Indicative targets (selected entries)
- Social spending of central government (floor) 2/: reported entries include:
  - "1,4831,717 Met"
  - "1,9811,058 Not Met"
  - "2,9711,915 Not Met"
  - "1,3081,3081,440 Met"
  - "* Revised data indicate that the social spending target, which was reported as "Not Met" at the 6th review, was actually met."
  - "2,6172,6172,931 Met"
  - "3,7855,122"
- Stock of VAT refunds outstanding (ceiling): entries appear but specific numeric ceilings for many dates are blank in the excerpt.

### Central government mineral revenue (ceiling) and related fiscal entries
- Central government mineral revenue in local currency (ceiling) (millions of U.S. dollar) 2/: reported values include "57 Not Met", "1011 Not Met", "15 14 Met", "20 15 Met", "25 18 Met", "30 20 Met", "30 30 9 Met", "30 30 13 Met", "30 30 9 Met", and "30303 Met".

### Memorandum items (selected series, as reported)
- Reserve money: "24,27725,20524,66026,51425,04727,470" and later series "33,96427,59035,10229,37836,14727,225", "29,44026,72030,04927,66030,67028,64731,37428,816", "28,86629,07429,30029,22629,69928,810", "29,52628,23828,00427,76830,12727,124".
- Reserve money (local currency portion only): "10,71811,50710,87111,63211,02412,263", and later "14,24914,06414,64215,60214,99814,438", "15,32014,20815,57315,11115,83115,62116,16216,566", "15,97816,84116,29817,41616,58217,627".
- Reserve money (constant exchange rates): "17,22418,58317,37718,71017,52919,414", later "21,46119,44821,89620,91422,29419,457", "20,58919,16720,85720,00021,13020,70821,47721,523", "20,76121,63921,08521,81721,37322,442".
- NFA (constant exchange rates): "9,2899,7149,3169,2969,47811,514", later "9,9599,1729,9909,1709,9978,781", "8,7978,8198,7429,2128,5079,2239,45511,264", "9,11211,1018,84911,2708,68210,826".
- Gross international reserves (millions of U.S. dollar): series include "1,1901,0451,1921,0311,2601,194", "1,1531,0911,1551,0961,1561,062", "1,1321,1071,1281,1411,1121,1421,2341,346", "1,1881,3281,1691,3341,2251,365", "1,3651,3641,3961,3501,3821,410".
- Usable international reserves (millions of U.S. dollar) 5/: series include "864716866707934865", "835853837857838825", "8938738899088739089951,112", "9551,0939361,1009911,131", "1,1311,1301,1621,1161,1481,176".
- Program exchange rate: "14.018" repeated across reporting dates.

_Italic: Source — Table 12. Suriname: Quantitative Performance Criteria and Indicative Targets Under the EFF (excerpt) from the provided PDF content._

### 3. Non-accumulation of central government domestic debt arrears (continuous ceiling)  (millions of SRD)0

### 3. Non-accumulation of central government domestic debt arrears (continuous ceiling)  (millions of SRD)

### Memorandum items and monetary/foreign reserve indicators
- Reserve money: 30,312; 27,229; 30,660; 28,545; 28,985; 29,668; 31,061; 29,892
- Reserve money (local currency portion only): 17,912; 17,528; 18,215; 17,772; 18,019; 18,240; 18,556; 18,407
- Reserve money (constant exchange rates): 22,596; 22,250; 22,844; 22,770; 22,866; 23,055; 23,101; 23,021
- NFA (constant exchange rates): 9,557; 9,355; 8,877; 8,757; 8,686; 8,547; 7,659; 7,893
- Gross international reserves (millions of U.S. dollar): 1,356; 1,341; 1,375; 1,366; 1,361; 1,352; 1,356; 1,373
- Usable international reserves (millions of U.S. dollar) 5/: 1,121; 1,107; 1,140; 1,132; 1,127; 1,117; 1,121; 1,139
- Program exchange rate: 14.018; 14.018; 14.018; 14.018; 14.018; 14.018; 14.018; 14.018
- Source note: Authorities and IMF staff calculations and projections.
- Technical notes included in the source:
  - 1/ Targets as defined in the Technical Memorandum of Understanding.
  - 2/ Cumulative flows from begining of the year.
  - 3/ The 2020 figure is a stock as of end-June 2021.
  - 4/ The 2020 figure is a stock as of end-December 2020.
  - 5/ Official reserve assets excluding the PBOC swap and ring-fenced reserves.
  - 6/ The zero new natural-resource revenue-collateralized debt contracted by or on behalf of government is subject to an exception applying exclusively to new oil-resource revenue related-collateralized debt contracted by Staatsolie, which is capped at US$ 2 Billion cumulatively to exclusively finance its stake in the exploration of oil in block 58
  - 7/ Non-observance for the month February 2023

### Structural benchmarks under the EFF — Prior Actions and Objectives
- Prior Actions:
  - The electric utility company (EBS) to return SRD 500 Million to the state budget to recover the May-June overpayment — Prior Action.
  - Ensure fiscal adjustment in line with program parameters — Prior Action.
  - Prepare a time-bound recapitalization plan for the CBvS — Prior Action to protect the CBvS’s financial autonomy.
- Select structural benchmarks, dates, and status (objectives summarized):
  - Establish competitive FX auctions for the CBvS under an agreed rule when intraday exchange-rate change > 2 percent. Target December 2021 — Met. Objective: Ensure the CBvS has a mechanism to intervene in the FX market.
  - Establish an electronic trading platform for inter-bank/cambio FX trading. Target June 2022 — Not met. Objective: Create a consolidated FX market.
  - Publish on the CBvS's external website the FY 2020-2021 audited IFRS financial statements. Target June 2022 — Not met. Objective: Strengthen accountability and transparency, and reduce risk of misreporting.
  - Develop a time-bound plan for the CBvS’s recapitalization agreed between the CBvS and the government. Target September 2022 — Not met. Objective: Protect the CBvS’s financial autonomy.
  - Publish on the CBvS's external website the FY 2016 - 2018 audited financial statements. Target December 2021 — Not met; implemented with a delay in February 2022. Objective: Strengthen accountability and transparency, and reduce risk of misreporting.
  - National Assembly to pass amendments aligning CBvS frameworks with IMF recommendations. Target January 2022 — Not met; implemented with a delay in April 2023. Objective: Strengthen the CBvS’s mandate, autonomy, governance, and accountability and transparency.
  - Additional FX market, audit, and publication benchmarks with dates through September 2024, variously Met, Not met, or Proposed to be reset; objectives focus on transparency, recapitalization, and consolidated FX market creation.

### Financial sector and crisis preparedness benchmarks
- Undertake full asset quality review (AQR) for largest banks using internationally reputable specialist firm. Target September 2022 — Met. Objective: Diagnose largest banks and potential recapitalization needs.
- Submit to the State Council the Credit Institutions Resolution Act. Target January 2022 — Not met; implemented with delay in February 2023. Objective: Strengthen CBvS's role in crisis management.
- Submit revised Banking and Credit Supervision Act. Target January 2022 — Not met; implemented with delay in February 2023. Objective: Solidify oversight.
- Operationalize Financial Stability Committee and Bank Resolution Unit — targets January–February 2022 — Not met; implemented with delays. Objective: Improve coordination and strengthen crisis management.
- Undertake full AQR for remaining banks. Target December 2022 — Not met; implemented with delay in May 2023. Objective: Diagnose financial sector and potential recapitalization needs.
- CBvS and MoF to agree governance framework for state-owned banks. Target 16 December 2023 — Not met; implemented with delay in February (year not specified). Objective: Improve governance of state-owned banks.
- CBvS to instruct banks to incorporate AQR results and review recapitalization plans. Target October 2023 — Not met; implemented with delay in December. Objective: Improve strength of the financial sector.
- CBvS, in consultation with IMF, to set CET1 and CAR targets and outline corrective measures. Target 16 March 2024 — Not met; implemented with delay in April 2024. Objective: Improve strength of the financial sector.

### Fiscal and debt benchmarks, implementation status, and objectives
- Publish plan to implement IMF technical assistance to streamline treasury functions through the Treasury Single Account (TSA). Target January 2022 — Met. Objective: Improve governance and increase transparency.
- Develop terms of reference for hiring specialists to audit outstanding supplier arrears. Target January 2022 — Met. Objective: Improve governance and increase transparency; improve fiscal data reporting.
- Publish financial assessment of EBS including legacy liabilities. Target May 2022 — Met. Objective: Achieve full cost recovery in the electricity sector.
- Commence an audit on outstanding supplier arrears. Target April 2022 — Met: audit completed in May 2023. Objective: Improve governance and transparency; improve fiscal data reporting.
- Passage of laws needed to implement the VAT by the National Assembly. Target March 2022 — Not Met; implemented with a delay in August 2022. Objective: Ensure fiscal adjustment in line with program parameters.
- Publish plan to scale back tax exemptions to raise additional revenue of 0.4 percent of GDP. Target March 2022 — Not Met; Implemented in February 2023 budget. Objective: Ensure fiscal adjustment in line with program parameters.
- Expand legal mandate of the debt management office (SDMO) to include whole nonfinancial public sector. Target June 2022 — Not Met; implemented with delay in March 2023. Objective: Improve debt data reporting.
- Create a large taxpayer unit. Target June 2022 — Not Met; implemented with a delay in July 2022. Objective: Improve tax administration.
- Review social protection public expenditure and publish time-bound strategic plan. Target December 2023 — Not met; implemented with delay in May 2024. Objective: Strengthen social spending.
- Establish system to compile up-to-date list of public entities (Institutional Table). Target June 2023 — Met. Objective: Improve fiscal data reporting.
- Enact amended VAT Act to convert zero-rated products to exempt and impose standard 10 percent VAT on sales covering at least 60 percent of household consumption. Target July 2023 — Not Met; implemented with delay in September 2023. Objective: Ensure fiscal adjustment.
- Publish on EAS external website quarterly updates of rationale for each tariff adjustment and subsidy remaining. Target 7 October 2023 — Met. Objective: Improve governance and transparency; improve fiscal data reporting.
- Operationalize Personnel Act amendment to halt payments to unregistered workers via state decree. Target 7 October 2023 — Not Met; implemented with delay in November 2023. Objective: Strengthen PFM and ensure fiscal adjustment.
- Issue State Decree to provide Minister of Finance authority to access all bank accounts held by government entities at commercial banks. Target March 2024 — Not Met; implemented with delay in April 2024. Objective: Strengthen PFM.
- Publish quarterly budget execution report starting with end June 2023 budget outturns. Target Continuous — Met for end-June 2024. Objective: Strengthen PFM.
- MoFP, SDMO, and CBvS to sign MOU detailing responsibilities for external debt payments. Target January 2024 — Met. Objective: Improve debt management and reporting, and avoid external debt arrears.
- Publish monthly report on Ministry of Social Affairs and Housing website detailing household coverage and value of cash transfers by district. Target 14 January 2024 — Met. Objective: Improve governance and transparency.
- Mandate that all tax declarations and transactions use a Fiscal Identification Number. Target 8 June 2024 — Reformulated as below. Objective: Improve tax administration.
- Mandate that all importers/exporters use the Fiscal Identification Number. Target 8 June 2024 — Met. Objective: Improve tax administration.
- Hire 25 new qualified staff for the Tax Department. Target 8 November 2024 — New proposed SB. Objective: Improve tax administration.
- MoFP, SDMO, and CBvS to sign MOU detailing responsibilities for domestic debt payments. Target December 2024 — New proposed SB. Objective: Improve tax administration.
- Implement a pilot Treasury Single Account for a limited set of ministries. Target 8 January 2025 — Strengthen PFM.
- Budget Department to set and enforce line ministry quarterly commitment ceilings, including through FreeBalance. Target 8 Continuous — Not Met. Objective: Strengthen PFM and avoid new expenditure arrears.
- Fully repay domestic debt arrears. Target 15 March 2024 — Not Met; implemented with delay in July 2024. Objective: Improve debt management and financial stability.
- Issue resolution clarifying government will not be responsible for certain contracts — Target 8 April 2024 — Met. Objective: Strengthen PFM and avoid new expenditure.
- Mandate all line ministries to report stock of arrears to the MoF monthly. Target 15 June 2024 — Met. Objective: Improve debt management and financial stability.

### Governance and AML/CFT benchmarks
- Ratify the United Nations Convention Against Corruption (UNCAC). Target January 2022 — Met. Objective: Reduce vulnerabilities to corruption and promote investment and growth.
- Issue Implementation Act to amend Anti-Corruption legal framework to criminalize all corruption acts and strengthen income and asset declarations. Target June 2022 — Not Met. Objective: Reduce vulnerabilities to corruption.
- Operationalize Anti-Corruption Commission. Target March 2022 — Not Met; implemented with delay in May 2023. Objective: Reduce vulnerabilities to corruption.
- Amend Anti-Corruption legal framework to criminalize acts of corruption. Target 28 June 2024 — Not Met. Target 28 November 2024 — New proposed SB.
- Amend Anti-Corruption legal framework to require income and asset declarations of politically exposed persons, routine verification, publication, and sanctions. Target 28 September 2024 — Proposed to be reset to end-November 2024.
- Enact new procurement law to centralize and mandate publication of public procurement tenders and contract awards. Target 8 September 2023 — Not Met. Objective: Strengthen procurement efficiency.
- Amend AML/CFT legislation to align with FATF standards. Target 28 August 2022 — Not Met; implemented with a delay in November 2022. Objective: Mitigate criminal economic activity and promote integrity in financial markets.

### Decomposition of public debt and debt service by creditor (2023–26) — Key figures and composition
- Total debt stock excl. arrear end-2023 (In USD): 3,397 (100 percent Total debt); Debt incl. arrears end-2023: 3,397
- Total debt service (2024–26) and arrears (end-2023 and projections) presented in table form in source. Selected components:
  - External debt (end-2023): 2,694 (79 percent of total debt); percent GDP: 22,503 (numbers presented in tabular format in source).
  - Multilateral creditors (end-2023): 1,319 (39 percent of total debt)
    - IMF: 265
    - World Bank: 191
    - IADB: 847
    - Other Multilaterals: 188
      - o/w Caribbean Development Bank: 116
      - o/w European Investment Bank: 100
      - o/w Islamic Development Bank: 41
      - o/w The OPEC Fund for International Development: 30
  - Official creditors (end-2023): 605 (18 percent)
  - Bilateral creditors (end-2023): 428 (13 percent)
    - o/w Paris Club: 321
    - China: 384 (note: appears in separate bilateral and ECA-backed lines in source)
    - India: 120
  - ECA-backed loans and other bilateral entries appear in the source table with country- and creditor-specific lines (China, India entries and Paris Club breakdowns).
  - Commercial creditors (end-2023): 769 (23 percent)
    - Eurobonds: 660 (19 percent)
      - o/w: Oppenheimer: 660
    - Other private creditors: 110 (3 percent)
      - o/w ABN-AMRO Bank N.V.: 21
      - o/w Israel Discount Bank: 100
      - o/w Credit Suisse: 110
      - o/w ICBC: 652
      - o/w KBC: 300
  - Domestic debt (end-2023): 703 (21 percent)
    - Held by Central Bank: 253
    - Held by Local Banks: 118
    - Held by Local Non-Banks: 333
      - o/w other accounts payable, incl. supplier arrears: 142

- Source and methodological notes:
  - Data source: IMF staff estimates from Suriname Debt Management Office (SDMO).
  - Assumptions:
    - For external debts with incomplete bilateral restructuring agreements by end-2023, reported debt stocks and debt services are based on original contracts.
    - For external debt with completed bilateral restructuring agreements by end-2023, reported debt stocks and debt services are based on these agreements; arrear repayments are included in projected debt service.
    - For domestic debts, restructuring with CBvS is reflected to calculate domestic debt service.
    - Figures are based on existing debts as of end-2023; debt service from newly contracted debt in 2024 onward are not reflected.

### Debt coverage, disclosures, and DSA commentary
- Debt coverage in the DSA:
  - Central government is the primary focus; central government debt includes loans to IMF and CBvS.
  - No estimate provided for local governments' and social security funds' debts — assessed as minimal if any.
  - No estimate of SOE debts provided; government passed a law to expand SDMO’s legal mandate to include the whole NFPC and tracks financial positions of the 10 largest state-owned enterprises.
- Subsector inclusion (baseline):
  - Budgetary central government: Yes
  - Extra budgetary funds (EBFs): No
  - Social security funds (SSFs): No
  - State governments: No
  - Local governments: No
  - Public nonfinancial corporations: No
  - Central bank: No
  - Other public financial corporations: No
- Reporting and accounting notes:
  - Stock of arrears could be used as a proxy in the absence of accrual data on other accounts payable.
  - Instrument, accounting, consolidation, basis of recording, and valuation principles are summarized in the source’s annex tables and notes.
- Commentary conclusion from source: Suriname's public debt under the DSA refers to central government debt including loans to IMF and CBvS; limited coverage for other subsectors but SDMO legal mandate expansion and tracking of 10 largest SOEs are noted.

*Source: Authorities and IMF staff calculations and projections (from 1surea2024004-print-pdf).*

### Annex I. Figure 3. Suriname: Public Debt Structure Indicators

### Annex I. Figure 3. Suriname: Public Debt Structure Indicators

### Baseline debt path and key projections
- Public debt (Percent of GDP):
  - Actual 2023: 90.3
  - 2024: 85.7
  - 2025: 78.6
  - 2026: 73.1
  - 2027: 68.3
  - 2028: 64.8
  - 2029: 60.4
  - 2030: 55.3
  - 2031: 50.1
  - 2032: 45.1
  - 2033: 40.3
- Change in public debt (Percent of GDP): -26.6, -4.6, -7.1, -5.5, -4.7, -3.5, -4.3, -5.2, -5.1, -5.0, -4.8 (years 2023–2033 respectively)
- Contribution of identified flows to change in public debt (Percent of GDP): -11.0, 0.8, -2.3, -4.0, -3.9, -3.8, -3.8, -4.3, -4.3, -3.7, -3.6
- Contribution of residual to change in public debt (Percent of GDP): -15.6, -5.4, -4.8, -1.5, -0.9, 0.3, -0.5, -0.9, -0.8, -1.3, -1.2

### Fiscal and macroeconomic contributors (identified flows)
- Primary deficit (Percent of GDP): -1.3, -2.8, -3.5, -3.5, -3.5, -3.5, -3.5, -3.5, -3.5, -3.5, -3.5 (2023–2033)
- Noninterest revenues (Percent of GDP): 25.1, 26.1, 25.4, 25.4, 25.4, 25.4, 25.4, 25.4, 25.4, 25.4, 25.4
- Noninterest expenditures (Percent of GDP): 23.9, 23.3, 21.9, 21.9, 21.9, 21.9, 21.9, 21.9, 21.9, 21.9, 21.9
- Automatic debt dynamics (Percent of GDP): -7.9, -2.4, -1.6, -0.9, -0.4, -0.2, -0.2, -0.2, -0.2, -0.2, -0.1
  - Real interest rate and relative inflation (component): -7.9, 0.2, 0.9, 1.4, 1.7, 1.8, 1.7, 1.5, 1.4, 1.3, 1.2
  - Real interest rate (Percent): -37.7, -7.9, -5.3, -2.7, -1.4, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2
  - Relative inflation (Percent): 29.8, 8.2, 6.2, 4.1, 3.1, 1.6, 1.5, 1.4, 1.2, 1.1, 1.0
  - Real growth rate (Percent): -2.5, -2.6, -2.5, -2.3, -2.1, -2.0, -1.9, -1.8, -1.6, -1.5, -1.3
- Real exchange rate: 2.4 (value shown for one period)

### Other identified flows and adjustments
- Other identified flows (Percent of GDP): -1.9, 6.0, 2.7, 0.3, 0.0, -0.1, -0.1, -0.6, -0.6, 0.0, 0.0
- Recapitalization of CBvS (Percent of GDP): 0.0, 1.0, -0.1, -0.1, -0.1, -0.1, 0.0, -0.6, 0.0, 0.0, 0.0
- IMF BoP component (Percent of GDP): 1.5, 3.3, 1.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0
- Changes in deposits at CBvS (Percent of GDP): 2.6, 0.4, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0
- Nominal haircut eurobonds (Percent of GDP): -6.7, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0
- Nominal haircut CBvS (Percent of GDP): -1.1, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.0

### Gross financing needs and debt service
- Gross financing needs (incl. arrears clearance) (Percent of GDP): 6.8, 6.6, 3.3, 2.7, 5.0, 6.5, 7.0, 6.9, 7.0, 6.8, 6.8
- Of which: debt service (excl. arrears) (Percent of GDP): 5.2, 8.0, 6.8, 6.2, 8.5, 10.0, 10.5, 10.4, 10.5, 10.3, 10.3
  - Local currency debt service (Percent of GDP): 1.5, 1.3, 0.9, 0.9, 0.9, 2.2, 2.3, 2.9, 3.0, 3.3, 3.6
  - Foreign currency debt service (Percent of GDP): 3.7, 6.7, 5.9, 5.3, 7.6, 7.8, 8.2, 7.5, 7.5, 7.0, 6.7

### Macro memo indicators (selected)
- Real GDP growth (percent): 2.1, 3.0, 3.0, 3.0, 3.0, 3.0, 3.0, 3.0, 3.0, 3.0, 3.0
- Inflation (GDP deflator; percent): 51.2, 14.8, 11.7, 8.6, 7.3, 4.9, 4.9, 4.9, 5.0, 5.0, 5.1
- Nominal GDP growth (percent): 54.5, 18.3, 15.1, 11.9, 10.5, 8.0, 8.0, 8.1, 8.1, 8.2, 8.2
- Effective interest rate (percent): 1.4, 4.4, 4.6, 4.8, 5.2, 5.2, 5.2, 5.3, 5.4, 5.5, 5.6

### Key commentary and policy implications from the baseline
- Public debt is projected to decline below 90 percent of GDP by 2024 due to fiscal adjustment efforts as well as restructuring agreements, and it would be placed on a steady downward trend over the medium and long term, falling to below 65 percent in 2028, and below 50 percent by 2033.
- Gross financing needs (GFNs) peak in 2024 due to clearance of domestic debt arrears. GFNs are expected to trough in 2026 and projected to gradually increase in the medium to long run towards 7 percent of GDP because amortization of restructured external debts, bullet payments of CBvS recapitalization bonds, and the IMF loans.
- The GFN path is anchored by sustained primary surpluses and it is essential to continue fiscal adjustment efforts in the medium to long term.
- It is important to keep a liquidity buffer, including the government's deposits, against the increasing financing needs.
- Note that the CBvS recapitalization assumption, which has not been fully realized, adds 4.5 percent of GDP to the public debt stock in 2024, while the nominal haircut by bondholders had an impact to reduce the public debt stock by 6.7 percent in 2023.
- The IMF's BOP finance component is added to the debt stock. The GFNs are on a cash basis and reflect arrears clearances.

### Debt restructuring objectives and main assumptions (Restructuring scenario)
- Program long-term anchors and objectives:
  - Reduce public debt to 60 percent of GDP by 2035.
  - Reduce GFNs to an average of 9 percent and an upper limit of 12 percent over 2023–35.
- Coverage and treatment:
  - Debt perimeter for restructuring covers external commercial and official bilateral debt (including arrears), amounting to about 50 percent of GDP as of end-2021.
  - Paris Club agreements: no face value reduction of official debt and ECA-backed commercial debt; amortization paused for 7 years (until 2028) and for 8 years (until 2029) respectively.
  - Paris Club and EXIM China agreements include contingencies for a second phase of debt treatment should the macroeconomic outlook improve (notably related to oil developments). A final agreement with EXIM China is awaiting approval of the Chinese government.
  - Negotiations with the Paris Club for the second phase of debt treatment scheduled for September 2024.
- External private creditors (bonds):
  - Authorities reached an agreement in principle (AIP) with bondholders in May 2023; formal debt exchange finalized in November 2023 with pre-CAC participation rate over 96 percent and post-CAC participation rate of 100 percent.
  - New bonds issued in aggregate principal amount of USD 650 million, with an additional USD 10 million for fees and expenses.
  - Interest payments started from 2024 with a coupon of 4.95 percent in cash and with a coupon of 3 percent being capitalized until January 2026, when the coupon rate increases to 7.95 percent.
  - The bonds are amortized in 14 semi-annual installments starting in 2027 equal to 1/14th of the outstanding principal amount.
  - Bonds include a Value Recovery Instrument (VRI) conditional on new revenue streams from a specific oil development project (currently under appraisal). Program baseline conservatively does not incorporate additional oil revenue nor debt services on VRI given no FID.
  - VRI features: one-off floor of USD 100 million secured for the government; annual allocation to the VRI limited to 30 percent of the royalty revenues from the oil development project; aggregate amount paid under the VRI capped at USD 787 million.
  - Under baseline (without the VRI), restructuring yields NPV reductions of 19 percent for official creditors and 21 percent for external commercial creditors at a 5 percent discount rate.
- CBvS restructuring:
  - Legacy debts to the CBvS restructured into a new loan with a grace period of 2 years and a maturity of 27 years.
  - All short-term advances to the CG were repaid to the CBvS in 2023; no outstanding arrears. Losses from this restructuring are reflected in the CBvS recapitalization plan.
- Domestic restructuring and arrears clearance:
  - Accumulated domestic debt arrears to commercial banks and NBFIs peaked at SRD 3.3 billion (as of November 2022). By February 2024, bilateral restructuring negotiations for all domestic debts were finalized (mainly rollovers and extended maturities), including a large USD loan accounting for 50 percent of arrears at end-2023.
  - Approximately SRD 299 million in domestic debt arrears owed to Suriname Pensions Fund are disputed and under audit.
  - Apart from disputed arrears, all other domestic debt arrears were fully paid by end July (year indicated in source).
  - Reconciled end-2023 stocks: SRD 3.965 billion in other accounts payable (AOP), SRD 0.488 billion in legacy suppliers arrears, and SRD 0.809 billion in VAT refund arrears. By end July 2024 the authorities had further accumulated (net) SRD 1,975.5 million. Total stock of accounts payable stood at SRD 5.9 billion by July 2024; about 70 percent of this stock is more than 90 days past due and hence considered supplier arrears.
  - Authorities committed to gradually clearing all verified arrears on other accounts payable by 2027 and to adopt a continuous ceiling on non-accumulation of domestic debt arrears.
- Domestic arrear repayment schedule in 2024 (net basis) — selected aggregate:
  - Arrear repayments: SRD millions 4,284 (2.6% of GDP)
  - Commercial banks and NBFIs: 1,673 (1.0% of GDP)
  - Gold loan: 553 (0.3% of GDP)
  - Suppliers: 1,249 (0.8% of GDP)
  - VAT refunds: 809 (0.5% of GDP)
- Financing assumptions:
  - Financing requirements projected to decline over the medium term due to external debt restructuring (face-value and coupon reductions).
  - Budget support from the IDB is assumed only until 2024 (conservative assumption).
  - Project financing from multilateral creditors assumed to decline gradually as Suriname switches to market financing for capital expenditures.
  - Domestic financing expected to be limited in 2024 and 2025 due to gradual recovery in market confidence; baseline assumes no domestic market access in 2024 but modest issuance around SRD 200 million in 2025–2026.
  - In 2026 staff assume residual GFNs will be met by 100 percent domestic T bonds; external market access is assumed to resume (statement truncated in source).

### Long-term risk analysis — summary implications
- Long-term projections show that GFN-to-GDP and public debt-to-GDP would diverge quickly if the government followed the past 10-year path; historical 10-year average scenario includes crisis-period shocks (2020–22) and is thus less informative.
- The staff projection aligns with the "Baseline with t+5" case. GFNs increase in the medium term as repayments to restructured claims and the IMF commence.
- Health demographic and climate change scenarios:
  - Health cost based on demographic changes could provide additional risks in the long-term but would not have a material impact given declining GFN and debt paths under continued fiscal efforts.
  - Climate adaptation could cause additional fiscal costs; standardized and customized adaptation scenarios assume additional investment worth 3 percent of GDP per year.
  - Climate mitigation scenarios assume adaptation/mitigation investment needs (customized scenario example) up to 5.7 percent of GDP in standardized/customized scenarios (as reported for mitigation).
- Overall recommendation: continue fiscal reforms, sustain primary surpluses, and maintain sufficient fiscal and liquidity buffers to manage rising medium-term GFNs and long-term risks.

*International Monetary Fund — Annex I. Figure 3. Suriname: Public Debt Structure Indicators (extracted content).*

### 2027. The lack of external and domestic market access creates a potential financing gap in

### 1surea2024004-print-pdf - 2027. The lack of external and domestic market access creates a potential financing gap in

### Financing gap, government deposits, and recapitalization mechanics
- The lack of external and domestic market access creates a potential financing gap in 2024/25 that is filled by CG deposit withdrawal.
- The government had accumulated deposits of SRD 18.0 billion (13 percent of GDP) by end-2023.
- Recapitalization of the commercial banks is no longer expected to require CG injection of public money but will be covered through conversion of frozen CG deposits.
- Based on the FY 2021 audit, the recapitalization of the CBvS is assumed to equal 9.4 billion in 2024.
- The baseline assumes the CBvS will need annual injections to ensure capital and reserves grow with GDP.
- The recapitalization requires a one-off cash injection of SRD 1.0 billion (0.6 percent of GDP) in 2024.
- The remainder of the recapitalization will be met through issuance of marketable bonds by the government (classified as held-to-collect).
- There are 5 new instruments (bonds) with a face value of SRD 1.676 billion and maturities from 6 to 10 years.
- The coupon rate on these bonds is fixed at 9 percent with semi-annual payments; the principal amount of each bond will be paid at maturity (bullet payment).
- The bond issuance is assumed not to add to GFNs in 2024 (it is not a transaction based on liquidity needs of CG), but its interest payments and bullet principal repayments add to future GFNs (2025-2034).

### Public debt trajectory and global financing needs (GFNs)
- Public debt is assessed to become sustainable under the authorities’ restructuring strategy included in the baseline and the program macro-framework.
- Public debt projected path:
  - Falling below 90 percent in 2024.
  - Falling below 70 percent in 2028.
  - Falling below 50 percent in 2033.
- GFNs projected path:
  - GFNs decline sharply from 9.9 percent in 2022 to 3.2 percent in 2026.
  - GFNs would rise to 6.6 percent in the medium to long term due to debt service to the IFIs (including the IMF), frontloaded CBvS recapitalization, and repayments of restructured external claims.
  - GFNs would remain at sustainable levels over the long term with GFNs declining from 2033 onwards.
- If downside risks materialize, fiscal consolidation beyond the program period may be needed to generate additional buffers.

### External DSA and risks
- External debt stood at 114 percent of GDP at end-2023, down from 148 percent at end-2022.
- Total external debt is projected to decline below 80 percent of GDP at end-2028.
- Public sector external debt accounts for more than 50 percent of total external debt and is expected to track total external debt over the next few years, declining substantially due to a large fiscal adjustment and public external debt restructuring.
- Scenario analysis:
  - Various economic shocks reveal that external debt would generally be kept below 120 percent of GDP.
  - The historical scenario suggests external debt would be considerably higher than the baseline absent efforts on fiscal adjustment, public external debt restructuring, and macroeconomic stability.
  - Continued internal and external adjustment is critical to ensure external sustainability going forward.

### Final Investment Decision (FID) and Staatsolie participation in block 58
- The FID on investments to extract oil from block 58 is expected by year end.
- Staatsolie would need financing of USD 1-2 Billion to exercise their option of holding claims to 20 percent equity in the offshore fields.
- Recoverable reserves are assessed at 700 million barrels of crude oil.
- Staatsolie intends to raise financing for their equity participation by putting their share of profit oil as collateral.
- Without equity participation, government revenues will be limited to royalty payments and the government share of profit oil without benefiting from potential upside.
- Staatsolie’s investment in block 58 could support the government through higher dividend payment and increase Staatsolie’s footprint in the region.
- Given these exceptional circumstances, an exception to the zero continuous ceiling on collateralized borrowing is proposed covering Staatsolie's borrowing strategy for its equity participation in the project.

### Central Bank of Suriname (CBvS) recapitalization plan — objectives and rationale
- Objectives of the recapitalization plan:
  - (i) Ensure central bank’s policy solvency and operational independence.
  - (ii) Reinvigorate confidence in the financial markets.
  - (iii) Strengthen the monetary policy transmission.
- Perpetual losses from CBvS engagement in monetary financing operations undermined policy credibility; losses stemmed from excessive use of monetary financing, claims on the government that did not realize interest income, asset-liability mismatch, and pressures on the exchange rate.
- CBvS has restored some confidence as banks started participating in central bank paper and term deposits, but monetary policy transmission remains weak.
- Macroeconomic context supporting recapitalization:
  - The SRD has been appreciating since December 2023.
  - Inflation is on a steady downward trend.
  - Interest rates on open market instruments are declining.
- A strong legal foundation exists:
  - The new Central Bank Act (CBA) of 2023 explicitly prohibits monetary financing of the central government deficits.
  - The CBA explicitly sets price stability as the primary objective and requires CBvS, without prejudice to its primary objective, to aim to maintain financial stability.
  - CBvS is governed by an independent supervisory council.
- Publication of IFRS audited financial statements:
  - CBvS published IFRS audited 2020 and 2021 financial statements, with work in progress to publish 2022 statements.
  - Adoption of IFRS allows the central bank to recognize losses at the outset, enhancing transparency, accountability, and credibility.

### Modalities and specifics of the agreed recapitalization plan
- CBA capitalization requirements:
  - CBvS’ capital must be equal to SRD 1 billion, fully paid at all times.
  - CBvS shall have a reserve fund to cover losses from business operations, and the combined size of capital and reserve fund shall be at least equal to 6 percent of its financial assets.
  - If paid-up capital and reserve fund are less than 6 percent of financial assets at year-end, the State shall, within 30 calendar days, transfer to the CBvS marketable securities with specified maturity at prevailing market-based interest rate for an amount at least equal to the deficit.
- Agreed recapitalization plan parts (guided by IFRS audited 2021 statements):
  - Part 1: Paid-up capital — the CBvS will drawdown the SRD 1 billion capital injection on central government deposits by end-2024.
  - Part 2: Reserve fund — equal to SRD 8.4 billion, to be met through issuance of marketable T-bonds by the government.
- The bond is classified as held-to-collect; initially recognized at fair value and subsequently measured at amortized cost.
- CBvS recapitalization is fully reflected in the debt file and SRDSF (Annex 1).
- Consolidated loan IV:
  - Agreement in 2021 (renegotiated in 2023) restructures all claims of the central bank on central government into a consolidated loan.
  - Face value of the restructured loan (2023 amended agreement) is SRD 8.4 Billion.
  - Loan term is 30 years; principal repayments start in 2025.
  - Interest rate is 9 percent per year.
  - The loan is secured by:
    - (i) Staatsolie dividends from April 28, 2021;
    - (ii) Current and future annual profits from the Bank;
    - (iii) Royalty revenues from Grassalco.
  - Total cash flows from the recap bonds and the consolidated debt result in significant increase in profitability and cash inflows for the central bank.
- Communication and sequencing:
  - Prompt implementation of the agreed recapitalization plan is a priority.
  - The longer it takes to restore policy solvency, the more the government will need to support the central bank financially, increasing the fiscal burden in the longer run.
  - A strong communication strategy should accompany recapitalization to build public trust, improve policy solvency and credibility.

*Sources: IMF staff estimates; CBvS data as presented in the original chapter.*

### Annex III. Risk Assessment Matrix

### Annex III. Risk Assessment Matrix

### Conjunctural risks
- Intensification of regional conflicts (Likelihood: High; Economic Impact if Realized: Medium)
  - Description: Escalation or spread of the conflict in Gaza and Israel, Russia’s war in Ukraine, and/or other regional conflicts or terrorism disrupt trade (e.g., energy, food, tourism, supply chains), remittances, FDI and financial flows, payment systems, and increase refugee flows.
  - Economic impact: Disruptions to energy and food prices, worsening fiscal and current account balances, inflation pressures due to higher import prices.
  - Policy response:
    - Remain committed to fiscal discipline, provide targeted fiscal support to ensure delivery of essential services; increase social assistance transfers.

- Commodity price volatility (Likelihood: High; Economic Impact if Realized: High)
  - Description: A succession of supply disruptions (e.g., due to conflicts, export restrictions, and OPEC+ decisions) and demand fluctuations causes recurrent commodity price volatility, external and fiscal pressures in EMDEs, cross-border spillovers, and social and economic instability.
  - Economic impact: An increase in fuel and/or food prices would increase fuel import bill, worsen current account and external financing needs; increase inflation and exchange rate pressures.
  - Policy response:
    - Reprioritize spending to provide targeted fiscal support to the most vulnerable.
    - Maintain appropriately tight monetary policy to keep inflation expectations anchored.
    - Move ahead with transition to a fully renewable economy to reduce reliance on fossil fuel.
    - Raise domestic capacity for food and other goods supply; and maintain fiscal and external sustainability.

- Abrupt global slowdown (Likelihood: Medium; Economic Impact if Realized: High)
  - Description: Global and idiosyncratic risk factors cause a synchronized sharp growth downturn, with recessions in some countries, adverse spillovers through trade and financial channels, and market fragmentation triggering sudden stops in EMDEs.
    - China: Sharper-than-expected contraction in the property sector weighs on private demand, further amplifies local government fiscal strains, and results in disinflationary pressures and adverse macro-financial feedback loops.
    - Europe: Intensifying fallout from Russia’s war in Ukraine, supply disruptions, tight financial conditions, and real estate market corrections exacerbate economic downturn.
    - U.S.: Amid tight labor markets, inflation remains elevated, prompting the Fed to keep rates higher for longer and resulting in more abrupt financial, housing, and commercial real estate market correction.
  - Economic impact: A global recession scenario would lower trade, remittances, and investment. Resumption of currency depreciation and inflation, which will dampen domestic growth outlook, worsen fiscal and external accounts, and higher debt service costs.
  - Policy response:
    - Keep the exchange rate flexible to act as a shock absorber.
    - Use existing policy space to support the economy and protect the most vulnerable, consistent with the monetary policy framework and fiscal sustainability.
    - Implement structural measures to improve competitiveness to support domestic demand.
    - Monitor banks’ buffers to withstand shocks.

- Monetary policy miscalibration (Likelihood: Medium; Economic Impact if Realized: Medium)
  - Description: Major central banks loosen policy stance prematurely, hindering disinflation, or keep it tight for longer than warranted, causing abrupt adjustments in financial markets and weakening the credibility of central banks. Sharp tightening of global financing conditions and rising risk premia can increase vulnerabilities for sovereign and banks.
  - Policy response:
    - Keep flexibility in exchange rate to act as a shock absorber.
    - Keep appropriately tight monetary policy stance, communicating and signaling strong commitment to keeping inflation in check.
    - Reprioritize spending to provide targeted fiscal support to the vulnerable.

- Systemic financial instability (Likelihood: Medium; Economic Impact if Realized: Medium)
  - Description: High interest rates and risk premia and asset repricing amid economic slowdowns and political uncertainty (e.g., from elections) trigger market dislocations, with cross-border spillovers and an adverse macro-financial feedback loop affecting weak banks and NBFIs.
  - Economic impact: Higher global risk premium can result in a negative feedback loop between sovereign and banks; asset quality deterioration for banks.
  - Policy response:
    - Monitor the financial system and be ready to provide liquidity assistance if needed to maintain financial stability.
    - Adjust macroprudential measures to avoid an undue tightening of financial conditions.
    - Continue with fiscal discipline backed by structural reforms to increase fiscal sustainability and improve business/regulatory environment, thereby increasing investors’ confidence.

- Sovereign debt distress (Likelihood: Medium; Economic Impact if Realized: Medium)
  - Description: Domino effects from high global interest rates, a growth slowdown in AEs, unfunded fiscal spending, and/or disorderly debt events in some EMDEs spillover to other highly indebted countries, amplified by sovereign-bank feedback, resulting in capital outflows, rising risk premia, and loss of market access.
  - Economic impact: Higher funding costs for sovereign and corporates, capital outflows. Sovereign international market access is not expected until 2027.
  - Policy response:
    - Maintain fiscal discipline and tight monetary policy.
    - Proceed with restructuring of sovereign debt.
    - Seek additional financing from IFIs and bilateral donors.

- Social discontent (Likelihood: Medium; Economic Impact if Realized: High)
  - Description: High inflation, real income loss, spillovers from conflicts (including migration), worsening inequality, and disputed elections cause social unrest and detrimental populist policies.
  - Economic impact: Social discontent leads to protests, weakens the reform momentum, damages investor confidence, and slows growth.
  - Policy response:
    - Reprioritize spending to provide targeted fiscal support to the vulnerable.
    - Strengthen social safety nets.
    - Maintain appropriately tight monetary policy.

Notes on the RAM: The Risk Assessment Matrix shows events that could materially alter the baseline path. The relative likelihood is the staff’s subjective assessment (“low” = probability below 10 percent, “medium” = probability between 10 and 30 percent, “high” = probability between 30 and 50 percent). Conjunctural shocks and scenarios highlight risks that may materialize over a shorter horizon (between 12 to 18 months).

### Structural risks
- Deepening geoeconomic fragmentation (Likelihood: High; Economic Impact if Realized: Medium)
  - Description: Broader conflicts, inward-oriented policies, and weakened international cooperation result in a less efficient configuration of trade and FDI, supply disruptions, protectionism, policy uncertainty, technological and payments systems fragmentation, rising shipping and input costs, financial instability, a fracturing of international monetary system, and lower growth.
  - Economic impact: Deeper fragmentation would weaken growth and strain the ongoing macroeconomic and structural reforms. Suriname would need to find a new source of future growth that is less reliant on the external environment.
  - Policy response:
    - Allow the exchange rate to adjust to reflect the new fundamentals.
    - If inflation has fallen, utilize monetary policy space to ensure that the output gap does not stay negative for too long.
    - Extend targeted measures to support individuals and businesses by reprioritizing spending.

- Disorderly energy transition (Likelihood: Medium; Economic Impact if Realized: Low)
  - Description: A disorderly shift to net-zero emissions (e.g., owing to shortages in critical metals) and climate policy uncertainty cause supply disruptions, stranded assets, market volatility, and subdued investment and growth.
  - Economic impact: Would slowdown climate mitigation and adaptation efforts and adversely impact long-term growth.
  - Policy response:
    - Continue building capacity to monitor and assess climate change risks, including building a data collection mechanism.

### Country-specific risks
- Extreme climate events (Likelihood: Medium; Economic Impact if Realized: High)
  - Description: Extreme climate events driven by rising temperatures cause loss of human lives, severe damage to infrastructure, supply disruptions, lower growth, and financial instability.
  - Economic impact: Extreme climate shocks would weaken fiscal position and reduce government ability to mobilize revenues while increasing the need for more priority spending.
  - Policy response:
    - Accelerate investment into climate resilient infrastructure that could mitigate disaster risk; and continue seeking climate financing to safeguard from natural disaster shocks.

- Deceleration of reform momentum (Likelihood: High; Economic Impact if Realized: High)
  - Description: Delays in fiscal reforms generate market concerns about the fiscal consolidation and debt sustainability, undermining the private sector confidence necessary for investment. Policy uncertainty could undermine confidence and hurt investment and growth.
  - Economic impact: Policy uncertainty could undermine confidence and hurt investment and growth.
  - Policy response:
    - Adhere to fiscal consolidation strategy under the program to generate high primary surpluses on a sustained basis and facilitate the programmed reduction in public debt to 60 percent of GDP by 2035/36.

*International Monetary Fund — Annex III. Risk Assessment Matrix*

### 1.      Our government remains fully committed to the objectives of our home-grown reform

### 1.      Our government remains fully committed to the objectives of our home-grown reform 

### Program commitment and review history
- IMF Executive Board approved an extended arrangement under the Extended Fund Facility (EFF) on December 22, 2021 with access of 366.8 percent of quota (SDR 472.8 million or USD 673 million).
- Program objectives: (i) restore fiscal sustainability and strengthen fiscal management; (ii) bring public debt down to sustainable levels; (iii) improve the social safety net to better protect the most vulnerable; (iv) upgrade the monetary policy framework and adopt a flexible, market-determined exchange rate; (v) improve the viability of the financial system (including, where needed, through recapitalization) and develop a more effective bank oversight; and (vi) tackle corruption, strengthen institutions and institutional governance, and enhance Suriname’s AML/CFT framework.
- After a one year delay, the program was brought back on track and the second review was completed in June 2023. The IMF Executive Board completed the third, fourth, fifth and sixth reviews in September 2023, December 2023, March 2024 and June 2024 respectively.

### Macroeconomic outcomes and remaining challenges
- Restored macroeconomic stability and ongoing economic recovery.
- Confidence in the local currency has been restored.
- Inflation: "13 percent year-on-year in July".
- Usable international reserves: "stable at 6 months of imports at end-June".
- Remaining challenges:
  - Real GDP remains below its pre-pandemic level.
  - Inflation is still high.
  - Financial sector remains vulnerable.
  - Important reforms on governance and corruption vulnerabilities remain incomplete.
  - Political opposition, reform fatigue, and internal capacity constraints pose headwinds.

### Fiscal consolidation measures and progress
- Eliminated fuel subsidies; fuel prices determined by an automatic pricing mechanism based on international prices.
- Imposed specific duties on fuel.
- Phasing out distortionary electricity, gas, and water subsidies while protecting vulnerable groups through higher social assistance spending.
- Public sector wage bill contained.
- Introduced Value-Added Tax (VAT) and broadened its base.
- Timely progress made on domestic and external debt restructuring processes.

Key fiscal performance details and corrective actions:
- Missed end-June primary fiscal balance (PB) target: end-June cumulative PB of SRD -50 million versus SRD 692 million unadjusted target and SRD 556 million adjusted target.
- If agreed settlements between Staatsolie and EBS had been observed, the adjusted end-June target would have been missed by SRD 86 million.
- Discontinued settlement caps; EBS returned May and June overpayments to the state budget (prior action).
- From August 2024, EBS will transfer SRD 250 million it gets from higher electricity tariffs to the state budget each month.
- Next year’s budget will include an allowance for electricity payments so each ministry and SOE is responsible for paying their own electricity bills to EBS on time.

### Measures to reach the required primary balance of 2.8 percent of GDP
- VAT measures:
  - 2023 amendment to the VAT Act imposes the standard 10 percent VAT rate on 60 percent of household consumption.
  - New 5 percent rate on water, electricity, and cooking gas introduced in June 2024.
  - Over 4,300 taxpayers registered by July 2024 (target was 5,000); filing compliance at around 70 percent.
  - Ministerial resolution: late filing and/or failure to pay for tax returns due in June 2024 and onwards will incur penalties and interest; outstanding returns for January 2023 to April 2024 subject to penalties and interest as of August 1.
  - Implement streamlined and risk-based procedures for VAT refunds following IMF/FAD TA recommendations; set up a “gold list” of top taxpayers; VAT refund profiling mechanism introduced.
  - Commit to monitor and clear outstanding VAT refund arrears by end-2024.
  - Recruit 25 new staff for the Tax Department by end-November (recruitment deadline specified as "end-November" in different sections; elsewhere "by end-November 2024").
- Electricity subsidies and tariffs:
  - Increased average electricity bills by around 36 percent in 2023.
  - 2024 tariff adjustment plan: first increase of 40 percent in March, 7 percent in May and July, and further two increases of 7 percent each planned in September and November.
  - Tariffs linked to exchange rate and oil price developments; adjusted for shifting energy mix between hydro and thermal.
  - Tariffs for commercial users reached cost-recovery by mid-2024.
  - Low- and middle-income households still receive partial support; discount for middle-income households to be gradually phased out by the end of the year.
  - Agreement with EBS that all additional income from higher electricity tariffs is remitted to the state budget.
  - Quarterly publication on Energie Autoriteit van Suriname external website of tariffs by consumer group, rationale, estimated cost of providing electricity, and remaining size of the subsidy; cost, consumption, subject subsidy, and object subsidy to be provided on consumer electricity bills.
- Wage bill:
  - Keep public wage bill constant in real terms in 2024 at 6.8 percent of GDP.
  - Remove unregistered and chronically absent workers and address other irregularities (e.g., workers with two full-time salaries).
  - Savings used to modestly increase real compensation for public sector workers in 2024, particularly high-skilled workers.
  - February 2024: rolled out a digital personnel data information system at five ministries; expect coverage of all ministries by end-2024.
- Fuel taxes:
  - Fully eliminated fuel subsidies in March 2023 and reinstated taxes on fuel.
  - Fuel prices determined by an automatic pricing mechanism based on international prices.
  - Documented methodology automatically increases fuel taxes when fuel prices drop and decreases the fuel tax when fuel prices increase; methodology incorporates annual adjustments for inflation and a floor on the tax.

### Strengthening fiscal institutions (PFM, revenue administration, debt, procurement, SOEs)
- Treasury and cash management:
  - Pilot treasury single account (TSA) for a limited set of ministries (structural benchmark for end-January 2025).
  - IMF capacity development to support TSA implementation, new business processes, and orderly transition of balances.
  - Cash management unit created within the Treasury at end-2023 overseeing TSA implementation, liquidity planning, accounts management, and cashflow management.
  - Budget Department to set enforcement of commitment ceilings by line ministry at least quarterly (continuous structural benchmark, not met; expected implementation with delay in September).
  - Mandated all line ministries to report the stock of arrears to the Ministry of Finance and Planning (MoFP) monthly (structural benchmark for end-June 2024, met).
  - Planned steps to improve arrears information: (i) finalize and use the template proposed by IMF TA including ageing analysis; (ii) define and adopt a strategy to clear expenditure arrears accumulated from 2022; (iii) establish a committee of accounting officers with internal and external audit to verify all expenditure arrears; and (iv) include a definition of expenditure arrears in the regulatory framework.
- Tax administration:
  - Mandated all importers and exporters to use the Fiscal Identification Number (FIN) when processing transactions with the Custom and Excise Department (end-June 2024 SB, met); expand mandate to cover all taxpayers by end-December 2024.
  - Establish a dedicated VAT refund account; develop a national audit plan with audit risk selection criteria by end-October 2024 with IMF capacity development.
  - Develop an online VAT payment option with banks by end-November 2024.
  - Recruit at least 25 new staff at the Tax Department by end-November 2024.
- Debt management:
  - Improved SDMO back-office capacity and coordination between SDMO, MoFP, and CBvS.
  - Set up an information system for upcoming external payments; MOU signed specifying responsibilities and escalation processes.
  - Develop a similar MOU for domestic debt payments (new proposed end-December SB).
  - No new external debt arrears accumulated since system setup.
  - Committed to maintaining zero arrears to domestic debt creditors for the remainder of the program.
  - SDMO fully staffed with six employees for back-office functions.
- Procurement and transparency:
  - Ratified CARICOM’s Protocol on Public Procurement in July 2022.
  - Commit to enact a new procurement law to centralize and mandate publication of all public procurement tenders and contract awards, including names of awarded entities and their beneficial owner(s), names of public officials awarding the contracts, and an ex-post validation of delivery (structural benchmark for end-September 2023, not met).
  - Publish procurement information on an external government website by end-September 2024 after law enactment.
  - Incorporate a procurement module into the Integrated Financial Management Information System and connect with the regional system in collaboration with CARICOM Secretariat.
- Public investment management and climate:
  - Upgrading PIM procedures into a PIM manual with IDB support.
  - Publish PIM manual with general guidelines for economic appraisal of investment projects, including climate change and flood risk management considerations, and sectoral guidelines by end-December 2024.
  - Seek to formalize guidelines by strengthening PIM governance legal framework and establishing a public investment unit at the Ministry of Finance.
- SOE oversight:
  - Collect and publish the latest financial information for the largest SOEs.
  - Initiate quarterly financial monitoring of largest SOEs.
  - With IMF capacity development, produce a report identifying and quantifying fiscal risk generated by the largest SOEs by end-December 2024.

### Social safety net: protection and modernization
- Policy objective: Ensure the burden of fiscal consolidation is not borne by the poor and vulnerable; channel fiscal space from eliminating generalized energy subsidies to help the poor and vulnerable.
- Poverty data:
  - Extreme poverty rose from 0.7 in 2016/17 to 2.6 percent of households in 2022.
  - Extreme poverty concentrated in the interior: 6.3 percent of households.
  - Largest increases in extreme poverty: Great Paramaribo (1.5 percentage points higher) and rest of the coastal regions (3.2 percentage points higher).
  - Overall poverty fell slightly from 23.4 percent to 21.7 percent.
- Social spending and programs:
  - Met program target for social protection spending in Q1 2024 and Q2 2024.
  - July 2023: increased value of cash transfers by around 45 percent and expanded coverage of the social beneficiary program (SRD 1800 per month) to include recipients of the general old age pension.
  - December 2023: fast-tracked registration and delivery of digital payments cards to applicants to the new social beneficiary program.
  - January 2024: issued one-off payments to eligible beneficiaries.
  - Increase social spending from 2.2 percent of GDP in 2023 to 3 percent of GDP in 2024.
  - Social beneficiary program now has over 113,000 beneficiaries.
  - Plan to better calibrate cash transfer values in 2024 to protect vulnerable households and close the poverty gap for as many poor households as possible.
  - Coordinate increases in social beneficiary program with electricity tariff adjustments to protect vulnerable households while phasing out energy subsidies.
- Strategic plan and digitalization:
  - Finalized a strategic plan for improving efficiency and effectiveness of social protection with ILO and IDB diagnostics, aligned with the Multi-Annual Development Plan 2022–26.
  - Plan to create a single digital beneficiary information system financed by the IDB expected to be ready for implementation by end-2025; will streamline 21 social programs into a smaller set of coherent programs.
  - Transition to digital payment methods to expand coverage and reduce costs.
  - Purchased 73,500 government-provided debit cards with IDB support for traditional and new cash transfer programs.
  - Digital payments rollout to the interior expected to improve delivery efficiency where consumption poverty is "20 percentage points above the national average".
  - Only 21 percent of adults in rural areas have bank accounts; digital cash transfer infrastructure seen as a pillar for preparedness and future financial inclusion.

*Source: 1surea2024004-print-pdf - 1.      Our government remains fully committed to the objectives of our home-grown reform*

### 14.      To improve transparency in social protection spending, we have begun reporting on

### 14.      To improve transparency in social protection spending, we have begun reporting on 

### Social protection transparency
- Publish a monthly report on the Ministry of Social Affairs and Housing’s external website detailing:
  - the number of households or individuals covered by each cash transfer program in each district;
  - the value of cash transfers made to recipients in each district under each program; and
  - eligibility criteria.

### IV. RESTRUCTURING PUBLIC DEBT
- Commitment to debt sustainability:
  - Bring down public debt to 60 percent of GDP by 2035.
  - Keep gross financing needs below an average of 9 percent of GDP in 2024-35 and no higher than 12 percent of GDP in any one year.
  - Program ensures the fiscal position is fully financed in 2024 and 2025.
- External debt restructuring:
  - Agreements reached with all official and most commercial creditors; final phase ongoing.
  - Negotiations with the Paris Club scheduled for end September to sign an umbrella agreement for individual PCC negotiations.
  - Final agreement with EXIM China expected in the coming months once approval of the Chinese government is secured.
  - April agreement signed with ABN AMRO to restructure two outstanding loans.
  - Followed best practices including inter-creditor equity and comparability of treatment.
  - Comparable debt restructuring offers given to private external creditors; negotiations with remaining private external creditors (ICBC, Credit Suisse, and Israel Discount Bank) conducted in good faith.
  - Four-pillar approach: (i) fair and equitable treatment for all creditors; (ii) transparency and constructive dialogue; (iii) commitment to fiscal consolidation and reform policies; (iv) sustainable debt solution within the IMF debt sustainability framework.
- Domestic debt and arrears:
  - Restructuring of legacy debts to the CBvS concluded in July 2023.
  - Restructuring of domestic debt (including arrears) to commercial banks completed in January 2024.
  - Cleared all remaining domestic debt arrears (end-March SB, not met, implemented with delay in July), except for a small amount of disputed arrears being audited.
  - Commit to finalize ongoing audit and clear domestic debt obligations in a timely manner.
  - Proposed new continuous IT on non-accumulation of domestic debt arrears (TMU ¶54) for Board adoption.
- Supplier arrears:
  - Stock of supplier arrears stood at SRD 4.4 billion as of July 31, 2024, excluding legacy arrears before Jan 1, 2022 (SRD 588mn) and VAT refund arrears (SRD 809mn).
  - Cleared SRD 922.5 million of supplier arrears by end July 2024.
  - Commit to gradually clear the entire stock of supplier arrears by end-2027.
  - Fiscal targets evaluated on a cash basis; any clearance of supplier arrears will be offset by lower goods and services spending.
  - Implementing measures to monitor and prevent re-emergence of arrears (¶9).
- Guarantees and resource-collateralized debt:
  - Government will not provide guarantees to debt contracted by other parties during the program.
  - Government nor SOEs will not contract new debt collateralized by natural resource revenues or allow public sector to contract such debt on behalf of the central government.

### V. MANAGING MONETARY POLICY
- Monetary stance and liquidity:
  - Tight liquidity supported by continued implementation of central bank OMOs and increase in local currency reserve requirement from 39 to 44 percent last year.
  - Month-on-month inflation dropped to pre-crisis levels and stabilized.
  - Exchange rate appreciating in recent months.
  - Private sector credit growth has slowed; shift to more FX lending partly due to appreciating SRD and higher SRD lending rates, investments diverted to central bank certificates and term deposits, and prior CBvS guidance to limit nominal credit stock increase to 20 percent over a 12-month period through end-March 2024 (guidance not renewed).
  - Met all monetary targets for this review.
- Liquidity forecasting and treasury single account (TSA):
  - Deployed a new statistical forecasting framework after IMF capacity development to refine CBvS’s liquidity forecasting.
  - Gradual move of available government deposits in commercial banks to the CBvS as part of TSA implementation to improve liquidity forecasting.
  - Will keep IMF staff updated on large deposit movements to Central Bank for assistance in recalibrating Reserve Money Targets, if needed.
  - Align base for calculation of the FX and SRD SNEPS norms with reserve requirements for banks by the end of October 2024.
- Liquidity facilities and OMOs:
  - CBvS ready to help banks cover unexpected short-term liquidity gaps through standing lending and intraday facilities.
  - Standing facility priced at weighted average price of OMOs plus a modest spread to prevent excessive reliance.
  - Facilities underutilized as banks hold high precautionary reserves.
  - Engage with commercial banks to align assessments of excess liquidity and improve understanding of liquidity facilities.
  - Explore digitalizing processes to ease access to liquidity facilities and reduce paper-based delays.
  - If required, CBvS will sterilize liquidity from facility use through OMOs to minimize disruptions to reserve money targets.
  - Banks’ access to the ELA subject to supervisory decision based on viability and solvency assessments and remedial action as needed.
- Foreign exchange policy and market functioning:
  - Commitment to a flexible, market-determined exchange rate; refrained from direct FX interventions.
  - FX market pressures eased significantly; exchange rate appreciating since December.
  - Terminated indirect FX sales to essential goods importers starting July 2024.
  - Propose removing the QPC on the ceiling on the central government mineral revenue in local currency from September 2024 onwards.
  - MoFP will transfer all government net FX receipts (including from IFI budget support) at the prevailing market exchange rate to the CBvS only, except transfers required to meet government’s domestic FX debt service obligations.
  - Electronic FX trading platform expected to be launched in September (after procurement and technical delays; end-September 2023 SB, not met).
    - Initial participation limited to inter-bank transactions and AML/CFT compliant secondary banks licensed for FX transactions.
  - Exporter surrender requirement: exporters must offer 35 percent of export proceeds to the market; sale of repatriated FX to follow banks’ own daily rates per CBvS Circular 2023-2 issued on September 8, 2023.
  - No additional FX market regulatory guidance issued; committed to consult with the Fund before issuing any such guidance.
  - Will refrain from interventions or administrative measures that impede FX market functioning or contradict the program or Article VIII, Sections 2 and 3 of the IMF’s Article of Agreement.
  - Footnote: concerns central government debt to a local bank, serviced through an escrow account funded directly by royalty payments by an international gold mining company.

### VI. REDUCING BANKING SECTOR RISKS
- Banking sector indicators:
  - Reported level of capital adequacy ratio for the banking system: 21.8 percent as of May 2024.
  - Nonperforming loans (NPL) continue to decline but average NPL ratio still above the five percent benchmark.
  - Banks’ profitability largely depends on profits from OMOs; decline in OMO rates expected to reduce lending rates and shift activity to core banking business.
  - Banking system liquid on aggregate with liquid assets comprising 53.3 percent of total assets.
  - Liquidity unevenly distributed and skewed towards two large systemic banks.
  - Will prudently monitor liquidity and consult IMF staff on monetary policy changes affecting bank liquidity positions.
- Bank recapitalization and supervision:
  - Ensure timely completion of bank recapitalization plans to preserve financial stability.
  - Banks with capital shortages pledged via recapitalization plans to reach required CET1 and CAR levels by end of 2024 and 2026, respectively.
  - Monitor alignment with interim CET1 and CAR targets; stand ready to escalate prompt corrective actions if targets breached.
  - Banks subject to enhanced supervision and restrictions on dividend payouts and bonus payments under the recapitalization assessment framework.
  - Government solvency support will be for viable banks under strict conditionality, with a clear exit strategy to minimize costs and moral hazard.
- Structural reforms:
  - Ensure state-owned banks follow governance framework agreed by CBvS and MoFP and operate on a fully commercial basis.
  - Recovery in capital for state-owned bank with capital shortfall must stem from a sustainable business model.
  - Adopt risk-based supervision in alignment with amendments to the Banking and Credit System Supervision Act enacted in January and the Bank Resolution Act.
  - Bank Resolution Act to strengthen CBvS’ powers and tools for early intervention, recovery, and resolution; preparing supplementary regulations to support implementation.
- Broader financial sector reforms:
  - Commit to improving supervision of insurance and pension sectors, capital market and electronic payment systems, and establishing credit reporting and deposit insurance.
  - Enhance electronic transactions; CBvS drafting acts and regulations.
  - Intensify monitoring of non-bank financial institutions and collect information on loans extended by insurance firms and pension funds.
  - Initiate efforts to enhance functioning of the credit bureau to provide comprehensive borrower indebtedness data.
  - Collect data on profitability sources of non-bank financial institutions.
  - Revised AML/CFT regulation for banks and nonbanks issued in April 2024.
  - Prepare a comprehensive plan to coordinate and integrate reform initiatives, supported by IMF and other technical assistance.

### VII. IMPROVING MONETARY GOVERNANCE
- Financial statements and audits:
  - CBvS continuing to clear backlog of financial statements audits and conducts special audits of program monetary data.
  - Audited FY 2020 financial statements (IFRS) published in November 2023.
  - Published FY 2021 IFRS audited financial statements in August 2024 (end June SB, not met, implemented with delay in August).
  - Committed to publishing FY 2022 audited financial statements this year (end-September SB, proposed to be reset to end-December 2024).
  - Audits of program monetary data for each test date since program start have not raised material issues; will continue audits for future test dates to confirm data underlying performance criteria.
  - Continue to co-source specific audits while building internal audit capacity.
  - Received IMF technical assistance on foreign reserves management and will implement TA suggestions.
- Legal and recapitalization measures:
  - Reviewed Foreign Exchange Regulation of 1947 and aligned elements with new Central Bank Act; legislative amendment approved by National Assembly in July.
  - Finalized a plan to recapitalize the CBvS (prior action).
    - Plan based on FY 2021 published audited financials.
    - Includes provisions to inject more equity should finalized FY 2022 and FY 2023 audits and/or realized lower market value of instruments imply higher recapitalization needs.
    - Includes a clear target level of capital implemented through marketable instruments and a binding timeline to complete recapitalization before end of program.
    - Contains agreement between MoFP and CBvS on procedures to ensure equity of CBvS remains above minimum level as outlined in the Central Bank Act.

### VIII. TACKLING CORRUPTION, IMPROVING GOVERNANCE, AND ENHANCING THE AML/CFT FRAMEWORK
- Anti-corruption measures and institutions:
  - Installed the Anti-Corruption Commission (ACC) in May 2023 for a 5-year term following ratification of UNCAC.
  - With IMF capacity development, will enact amendments to anti-corruption legal framework by end-November to align with Chapter III of UNCAC on criminalization of acts of corruption (structural benchmark for end-June 2024, not met, proposed new structural benchmark for end-November 2024).
  - Suriname implemented Chapter III of UNCAC in the Criminal Code in 2015; various laws updated to criminalize non-official corruption and solicitation of bribes by non-officials, and to aggravate official corruption.
  - Article 32 and Article 37 UNCAC partly incorporated in national legislation; these articles are not mandatory.
- Asset and income declaration (AID) scheme:
  - With IMF capacity development, will create an effective AID scheme aligned with international best practice and FATF guidance.
  - Scheme will require declarations from politically exposed persons, involve routine declaration verification, make declarations publicly available (except certain confidential data), and establish proportionate sanctions for non-compliance (structural benchmark for end-September 2024).
  - In discussions with potential providers, including IDB, for an electronic management program for AID; will liaise with IMF on system selection.
- AML/CFT legal and supervisory improvements:
  - Enacted a new AML/CFT law in November 2022 following CFATF November 2022 assessment to address technical compliance deficiencies; further AML/CFT amendments approved by National Assembly in July 2024.
  - Working with donors and CD providers including IMF Legal Department, UNODC, and World Bank to strengthen anti-corruption and AML/CFT frameworks.
  - To fully comply with CFATF requirements, Suriname is undertaking:
    - (i) strengthening risk-based AML/CFT supervision for all financial institutions (banks, exchange offices, money transfer offices, credit unions, insurance companies, and pension funds);
    - (ii) developing and implementing a risk-based supervisory framework for DNFBPs;
    - (iii) making available adequate human, financial, and technological resources to the FIU;
    - (iv) amending the International Sanctions Framework to update legal framework for implementation of UN Security Council Resolutions Against Terrorism and Proliferation Financing.
  - Ongoing efforts include amendments to Money Transfer Offices Supervision Act, Capital Markets Supervision Act, and introducing Insurance Supervision Act, Electronic Payment Supervision Systems Act, and Virtual Asset Service Providers Supervision Act.
- National Risk Assessment and sectoral work:
  - Committed to initiate second National Risk Assessment (2020–24); Kroll AML Division contracted to advise and assist.
  - Ministry of Economic Affairs started sectoral risk assessment regarding Legal Persons including UBOs and NPOs.
  - AML Steering Council (ASC) approved AML Strategic Plan 2022–25 in November 2022.
  - In March 2023, ASC approved a list of High Prioritized Actions for 2023—Q2 2024 being rigorously implemented.
  - Second NRA underway to fill gaps from first NRA and provide more detail.
  - Ministry of Finance and Planning and CBvS working to strengthen supervision regime for financial sector; Ministry of Justice and Police presented draft legislation to strengthen gaming sector supervision.
- Sectoral Risk Analysis (SRA):
  - Began SRA of the banking sector in April 2023 with OAS-DTOC technical assistance.
  - SRA progressing; the SRA banking sector report was delivered in February.

*Source: 1surea2024004-print-pdf - 14.      To improve transparency in social protection spending, we have begun reporting on*

### 2024. SRAs of the exchange offices, money transfer offices, insurance and pension funds have

### SRAs of the exchange offices, money transfer offices, insurance and pension funds have been finalized in April 2024

### AML/CFT risk assessments and supervision
- SRAs of the exchange offices, money transfer offices, insurance and pension funds have been finalized in April 2024.
- The SRA reports will contribute to establishing targeted AML/CFT policies and the frequency and intensity of supervision of the financial sector.
- The SRA reports will elaborate on the methodology used to perform the risk analysis.
- The SRA findings will be reported to CFATF in 2024.
- Recent and pending legal and technical steps:
  - New AML/CFT Directives issued in March and April 2024.
  - Supervision legislation (in line with FATF requirements) is pending in The National Assembly.
  - Technical assistance offered by IMF Legal Department and UNODC/World Bank.

### Extractive sector governance and transparency
- Commitment to improving governance and transparency of the extractive sector.
- Suriname joined the Extractive Industry Transparency Initiative (EITI) in 2017 and has published reports for fiscal years 2016 to 2020.
- Reports for fiscal years 2021–22 will be published in December 2024.
- Progress on EITI recommendations includes presenting the new mining law to parliament in August 2024 to:
  - Reduce room for discretion in investor incentives.
  - Strengthen the framework for mining titles.
- Capacity building underway to legally compel companies in the extractive industry to disclose their beneficial owners.

### Incorporating climate considerations in macroeconomic policies
- Vulnerability and rationale:
  - Suriname is vulnerable to climate change despite a low carbon footprint and being a carbon negative country.
  - Dominant economic activity is in the low-lying coastal area; future climate-related events could disrupt economic activity and cause substantial long-term damage.
- Institutional and procedural strengthening:
  - Establishing an environmental authority by transforming the National Institute for Environment and Development (NIMOS) with a legislative mandate to build safeguards against climate issues.
  - The authority will have the power to assess public and private capital projects using the environmental impact assessment framework and provide mitigation measures.
  - Created a repository, Dondru, for climate change mitigation and adaptation information for national policy and planning.
  - Emphasis on strong collaboration between the MoFP and NIMOS to ensure climate issues are incorporated into Suriname’s fiscal framework.
  - Commitment to publish a public investment management manual with general guidelines for economic appraisal of investment projects including climate change and flood risk management considerations, and sectoral guidelines for key ministries by December 2024.

### Climate finance and carbon credits
- Exploring various climate finance options.
- Interest in selling carbon credits under the 2015 UN Paris Agreement scheme (Internationally Transferable Mitigation Outcomes—ITMO).
- Seeking technical assistance from development partners to:
  - Assess potential benefits and challenges.
  - Identify potential guarantors for DNS and possible conservation projects as climate protection pledges.
- For carbon credits, plans to begin approaching potential buyers—countries and private institutions.

### Statistics and data quality
- Commitment to improving the quality and dissemination of economic data, supported by IMF technical assistance.
- Recognized data issues:
  - Timeliness of data availability (long lag of publication of annual GDP).
  - Lack of quarterly GDP statistics.
- Capacity improvements:
  - Increased budget for the General Bureau of Statistics to hire additional qualify staffs.
  - Council of ministers approved a salary increase for their staff.
- Data quality priorities:
  - Improve Consumer Price Index (CPI), fiscal sector statistics, and public debt data.
  - Publish detailed monthly CPI data including all subcomponents.
  - Publish data that accurately reports all domestic arrears on a monthly basis.
  - Broaden institutional coverage of fiscal statistics to the public sector to better assess fiscal risks.
- Will seek technical assistance from international partners to support statistical improvements.

### Program monitoring and quantitative framework
- Economic plan monitoring mechanisms:
  - Reviews, quantitative and continuous performance criteria, indicative targets, and structural benchmarks.
  - Quantitative performance criteria are presented in Table 1; standard non-quantitative continuous targets are in para 34 of the Technical Memorandum of Understanding (TMU); structural benchmarks are in Table 2.
  - Program quantitative targets are defined in the attached TMU.

- Selected quantitative indicators and outcomes (as presented in Table 1; figures preserved as in source):
  - Fiscal/debt targets:
    - Primary fiscal balance (cash basis) of central government (floor): -2,321-719334 3,007Met 110159135 Not Met221-11014Met 331-3161 Met (and numerous subsequent monthly/quarterly entries through 2023 with varied Met/Not met outcomes as tabulated).
    - New natural resource revenue-collateralized debt contracted by or on behalf of the central government and/or SOEs (continuous ceiling) (U.S. dollars): 00 Met 00 Met 00 Met 0 0 Met (repeated across rows).
    - New central government guaranteed debt (continuous ceiling): 00 Met ... 0 0 Met (repeated).
    - Non-accumulation of central government external debt arrears (continuous ceiling): 00 Met ... 00 Met.
  - Monetary targets:
    - Gross credit to the central government by the central bank (continuous ceiling) 3/: 10,22900 Met 00 Met 00 Met 00 Met (series of entries).
    - Net international reserves of the central bank (floor) (millions of U.S. dollar) 2/4/: -154348310319 Met 11-25 Met 103216 Met 11430 19 Not Met (and many subsequent entries e.g., 1184913 Not Met, 12210492 Not Met, 156150156 Met, etc.).
    - Net domestic assets of the central bank (ceiling) 2/4/: 8,777-343161203 Not Met -6180-6 Met -1,134272 113 Met -1,137 39-118 Met (and many subsequent entries, including negative and positive values with Met/Not met status).
    - Direct purchases/sales of FX by the central bank and/or central government from/to SOEs and private sector (millions USD) (continuous ceiling): 00 Met repeated across reporting dates.
  - Indicative targets:
    - Social spending of central government (floor) 2/: 6041,070922 Not Met 371269 Not Met (and multiple subsequent entries including 742832 Met, 1,1121,315 Met, 1,4831,717 Met, 1,9811,058 Not Met, 2,9711,915 Not Met, etc.).
  - Memorandum items and reserve metrics (selected figures preserved):
    - Reserve money: 12,81718,29418,96718,62918,95019,06119,18019,59718,881 (and numerous subsequent monthly values through 2023).
    - Reserve money (local currency portion only): 7,342 9,1889,2719,3419,3389,4949,5709,6479,289 (and later values such as 9,8019,5169,9549,86010,10710,411, etc.).
    - Reserve money (constant exchange rates): 12,81714,838 15,93314,99115,89315,14416,209 15,29715,847 (and later series).
    - NFA (constant exchange rates): 4,0396,4036,953 6,5636,9207,8447,1178,000 7,020 (and later series like 8,2207,0228,2777,9438,7398,490, etc.).
    - Gross international reserves (millions of U.S. dollar): 585968992 9799861,0718481,139 899 (and later monthly/quarterly values including 1,0008861,0049511,094983, 1,0979911,0991,018, etc., up to 1,2341,346).
    - Usable international reserves (millions of U.S. dollar): 5/129501512513505604518673566 (and later entries such as 674558678620768656, 771667773698862713, 864716866707934865, 8938738899088739089951,112, etc.).
    - Program exchange rate: 14.018 repeated across reporting dates.

*Source: 1surea2024004-print-pdf - 2024. SRAs of the exchange offices, money transfer offices, insurance and pension funds have been finalized in April 2024.*

### 9. Central government mineral revenue in local currency (ceiling) (millions of U.S. dollar) 2/

### 9. Central government mineral revenue in local currency (ceiling) (millions of U.S. dollar) 2/

### Quantitative performance criteria — fiscal/debt targets (selected entries)
- Primary fiscal balance (cash basis) of central government (floor) 2/:
  - 1,538; 2,085; 162 — Not Met
  - 1,922; 2,220; 52 — Not Met
  - 692; 556; -50 — Not Met
- New natural resource revenue-collateralized debt contracted by or on behalf of the central government and/or SOEs (continuous ceiling) (U.S. dollars):
  - 0; 0 — Met
  - 0; 0 — Met
  - 0; 0 — Met
- New central government guaranteed debt (continuous ceiling):
  - 0; 0 — Met

### Quantitative performance criteria — monetary targets (selected entries)
- Gross credit to the central government by the central bank (continuous ceiling):
  - 0; 0; -1,662 — Met (where indicated)
- Net international reserves of the central bank (floor) (millions of U.S. dollar) 2/:
  - -29; -11; -29 — Not Met
  - -14; -34; -45 — Not Met
  - -96; -58; -42 — Met
- Net domestic assets of the central bank (ceiling) 2/:
  - 1,066; 804; 1,209 — Not Met
  - 980; 1,267; 1,401 — Not Met
  - 2,277; 1,747; 1,282 — Met
- Direct purchases/sales of FX by the central bank and/or central government from/to SOEs and private sector (millions USD) (continuous ceiling):
  - 0; 0 — Met (where indicated)

### Central government mineral revenue (ceiling) — explicit entries
- Central government mineral revenue in local currency (ceiling) (millions of U.S. dollar) 2/:
  - 30; 309 — Met
  - 30; 3011 — Met
  - 30; 3013 — Met

### Indicative targets (selected)
- Social spending of central government (floor) 2/:
  - 1,308; 1,308; 1,440 — Met*  
  - 2,617; 2,617; 2,931 — Met
  - 3,785; 5,122 — (targets listed)
  - *Revised data indicate that the social spending target, which was reported as "Not Met" at the 6th review, was actually met.
- Stock of VAT refunds outstanding (ceiling):
  - 909; 909; 748 — Met
  - 722; 722; 693 — Met
  - 443; 164 — (targets listed)
- Non-accumulation of central government domestic debt arrears (continuous ceiling) (millions of SRD):
  - 0; 0

### Memorandum items — reserves, program exchange rate, and related indicators (selected monthly/period entries)
- Reserve money:
  - 28,866; 29,074; 29,300; 29,226; 29,699; 28,810
  - 29,526; 28,238; 28,004; 27,768; 30,127; 27,124
  - 30,312; 27,229; 30,660; 28,545; 28,985; 29,668; 31,061; 29,892
- Reserve money (local currency portion only):
  - 15,978; 16,841; 16,298; 17,416; 16,582; 17,627
  - 17,202; 17,389; 17,570; 17,281; 17,749; 17,134
  - 17,912; 17,528; 18,215; 17,772; 18,019; 18,240; 18,556; 18,407
- Reserve money (constant exchange rates):
  - 20,761; 21,639; 21,085; 21,817; 21,373; 22,442
  - 22,110; 22,160; 22,312; 22,023; 22,463; 21,931
  - 22,596; 22,250; 22,844; 22,770; 22,866; 23,055; 23,101; 23,021
- NFA (constant exchange rates):
  - 9,112; 11,101; 8,849; 11,270; 8,682; 10,826
  - 10,656; 10,773; 11,073; 11,073; 9,926; 10,435
  - 9,557; 9,355; 8,877; 8,757; 8,686; 8,547; 7,659; 7,893
- Gross international reserves (millions of U.S. dollar):
  - 1,188; 1,328; 1,169; 1,334; 1,225; 1,365
  - 1,365; 1,364; 1,396; 1,350; 1,382; 1,410
  - 1,356; 1,341; 1,375; 1,366; 1,361; 1,352; 1,356; 1,373
- Usable international reserves (millions of U.S. dollar) 5/:
  - 955; 1,093; 936; 1,100; 991; 1,131
  - 1,131; 1,130; 1,162; 1,116; 1,148; 1,176
  - 1,121; 1,107; 1,140; 1,132; 1,127; 1,117; 1,121; 1,139
- Program exchange rate:
  - 14.018; 14.018; 14.018; 14.018; 14.018; 14.018

### Structural benchmarks — key completed, outstanding, and proposed actions (selected highlights)
- Prior Actions:
  - The electric utility company (EBS) to return SRD 500 Million to the state budget to recover the May-June overpayment — Prior Action.
  - Prepare a time-bound recapitalization plan for the CBvS — Prior Action.
- Exchange rate/monetary/safeguards measures:
  - Establish competitive FX auctions for the CBvS to undertake buying/selling of FX during periods of disorderly market conditions (intraday change > 2 percent) — December 2021 — Met.
  - Establish an electronic trading platform for inter-bank/cambio FX trading — June 2022 — Not met.
  - Publish on the CBvS's external website the FY 2020-2021 audited IFRS financial statements — June 2022 — Not met.
  - Develop a time-bound plan for the CBvS’s recapitalization agreed between the CBvS and the government — September 2022 — Not met.
  - Publish on the CBvS's external website the FY 2016 - 2018 audited financial statements — December 2021 — Not met; implemented with a delay in February 2022.
  - Publish on the CBvS's external website the FY 2020-2021 audited IFRS financial statements — 25 June 2024 — Not met; implemented with delay in August.
  - Publish on the CBvS's external website the FY 2022 audited IFRS financial statements — 25 September 2024 — Proposed to be reset to December 2024.
  - Develop a time-bound plan for the CBvS’s recapitalization agreed between the CBvS and the government — 27 April 2024 — Not met.
  - Submit a legislative amendment to the Foreign Exchange Regulation 1947 to the National Assembly — December 2023 — Not met; implemented with delay in May 2024.
- Fiscal and Debt measures (selected):
  - Publish a time-bound plan to implement recommendations from IMF technical assistance to streamline treasury functions through the Treasury Single Account (TSA) — January 2022 — Met.
  - Develop a term of reference for hiring specialists to audit outstanding supplier arrears — January 2022 — Met.
  - Publish the financial assessment of EBS including its legacy liabilities — May 2022 — Met.
  - Commence an audit on outstanding supplier arrears — April 2022 — Met: audit completed in May 2023.
  - Passage of laws needed to implement the VAT by the National Assembly — March 2022 — Not Met; implemented with a delay in August 2022.
  - Publish a plan to scale back a range of tax exemptions aimed at raising additional revenue of 0.4 percent of GDP — March 2022 — Not Met; implemented in February 2023 budget.
  - Create a large taxpayer unit — June 2022 — Not Met; implemented with a delay in July 2022.
  - Publish quarterly budget execution report starting with the end June 2023 budget outturns — Continuous — Met for end-June 2024.
  - MoFP, SDMO, and CBvS to sign a Memorandum of Understanding detailing responsibilities for external debt payments — January 2024 — Met.
  - Publish on the Ministry of Social Affairs and Housing’s external website a monthly report on households/individuals covered and cash transfers — 14 January 2024 — Met.
  - Mandate that all importers/exporters use the Fiscal Identification Number — 8 June 2024 — Met.
  - Fully repay domestic debt arrears — 15 March 2024 — Not Met; implemented with delay in July 2024.
- Governance and AML/CFT measures (selected):
  - Ratify the United Nations Convention Against Corruption (UNCAC) — January 2022 — Met.
  - Operationalize the Anti-Corruption Commission — March 2022 — Not Met; implemented with a delay in May 2023.
  - Amend the AML/CFT law and relevant laws to bring them in line with FATF standards — 28 August 2022 — Not Met; implemented with a delay in November 2022.

### Notes and program definitions (selected)
- Source: Authorities and IMF staff calculations and projections.
- 1/ Targets as defined in the Technical Memorandum of Understanding.
- 2/ Cumulative flows from begining of the year.
- 5/ Official reserve assets excluding the PBOC swap and ring-fenced reserves.
- 6/ The zero new natural-resource revenue-collateralized debt contracted by or on behalf of government is subject to an exception applying exclusively to new oil-resource revenue related-collateralized debt contracted by Staatsolie, which is capped at US$ 2 Billion cumulatively to exclusively finance its stake in the exploration of oil in block 58.
- 7/ Non-observance for the month February 2023.

*Source: IMF staff and authorities (tables and TMU excerpts).*

### 3.      Definition of central government: The central government (CG), for the purposes of the

### 1surea2024004-print-pdf - 3.      Definition of central government: The central government (CG), for the purposes of the

### Definitions: Central Government (CG), State-Owned Enterprises (SOE), and Debt
- Central government (CG): the set of institutions and government units currently covered under the state budget. Newly formed public sector entities will be examined and included within the CG perimeter if adjudged to meet the definition of a CG unit per the Government Finance Statistics Manual 2014.
- State-Owned Enterprises (SOE): corporations that (i) the CG is a shareholder; or (ii) are controlled by the CG directly or indirectly through other government-controlled entities. Control can be established through legislation or equity participation.
- Debt (definition for program purposes): a current (not contingent) liability created under a contractual arrangement through the provision of value in the form of assets (including currency) or services and which requires the obligor to make one or more payments in the form of assets (including currency) or services at some future point(s) in time; payments discharge principal and/or interest liabilities. Primary forms:
  - loans (including deposits, bonds, debentures, commercial loans, buyers’ credits; repurchase agreements; official swap arrangements);
  - suppliers’ credits (deferred payments for goods/services); and
  - leases (debt equals the PV at lease inception of all lease payments expected during the agreement excluding payments for operation, repair, or maintenance).
- Arrears, penalties, and judicially awarded damages arising from failure to make payment under a contractual obligation that constitutes debt are debt. Failure to make payment on an obligation not considered debt under this definition (e.g., payment on delivery) does not give rise to debt.
- A debt is considered contracted when all conditions for its entrance into effect have been met, including approval by the National Assembly. Contracting of credit lines with no predetermined disbursement schedules or with multiple disbursements is also considered contracting of debt.
- Fiscal year: calendar year, January 1 to December 31.

### A. Primary Fiscal Balance (Cash Basis) of Central Government (Floor)
- Definition: primary fiscal balance (cash basis) of the CG is calculated as cumulative CG interest payments minus total net borrowing requirements (NBR) from the beginning of the year. NBR (measured at official (current) exchange rates) is the sum of:
  - change in net CBvS credit to the CG, including changes in the government deposit position at the CBvS and excludes any accrued interest;
  - change in net credit from depository corporations, including changes in CG deposits and net issuance of treasury bills, lending, and other CG securities held by commercial banks and excludes any accrued interest;
  - change in net non-bank credit to the CG, including net issuance of Treasury bills and other CG securities to non-banks, and other CG claims and debts vis-à-vis nonbank institutions and excludes any accrued interest;
  - new external loan disbursements net of external loan amortization including repayment of external arrears;
  - net sale of government assets (financial including privatization receipts).
- CG interest payments: cash-basis interest paid on CG domestic and external debt obligations.
- Mineral revenue (definition): government’s tax and non-tax proceeds from state-oil company Staatsolie Suriname and from gold companies. Includes corporate tax, wage tax (including old age fund contributions), dividend tax, indirect taxes, dividends, royalties and others. Royalties from small scale gold mining are included.

- Cumulative Mineral Revenue of CG (In SRD millions) — cumulative flows from the beginning of the fiscal year:
  - End-January 2024: 1,409
  - End-February 2024: 2,818
  - End-March 2024: 4,227
  - End-April 2024: 5,499
  - End-May 2024: 6,874
  - End-June 2024: 9,214
  - End-July 2024: 11,261
  - End-August 2024: 13,015
  - End-September 2024: 16,278
  - End-October 2024: 16,789
  - End-November 2024: 17,300
  - End-December 2024: 17,810

- Reporting: Fiscal data will be provided to the Fund with a lag of no more than six weeks after the end of the month.
- Adjusters to the floor on the cumulative primary cash balance of the CG:
  1. downward (upward) by the full extent that cumulative project loans are more (less) than project loans given in Table 2.
  2. upward to the extent of any rise in mineral revenue above the cumulative baseline projections given in Table 1.

### B. New Natural Resource Revenue-Collateralized Debt Contracted by or on Behalf of the CG and/or SOEs (Continuous Ceiling)
- Definition: ceiling applies to new natural resource revenue-collateralized debt (domestic and external) contracted on a gross basis by or on behalf of the CG and/or SOEs throughout the program period. Natural resource revenue-collateralized debt involves creating a security interest, charge, or lien over any natural resource, natural resource receivables, or proceeds from the sale or lease of natural resources. Use of a collection account where no charge or lien is created is excluded.
- Exclusions: external debt contracted due to external debt restructuring, to be agreed between the authorities and its creditors, is excluded.
- Exception: a non-zero exception applies to contracting of new oil-resource revenue-related collateralized debt by Staatsolie to finance its stake in exploration of oil in block 58, subject to a continuous cumulative non-zero ceiling of US$ 2 Billion.
- Official exchange rate applies to all non-SRD denominated debt.
- Reporting: Data on new debt contracts will be provided to the IMF on a continuous basis to verify absence of a security interest, charge, or lien over any natural resource.

### Table excerpts: Budget and Project Financing in FX (Baseline Projection) — cumulative flows from beginning of fiscal year (In USD millions)
- External loans from IFIs for budget financing 1/:
  - End-January 2024: 0
  - End-February 2024: 0
  - End-March 2024: 0
  - End-April 2024: 0
  - End-May 2024: 0
  - End-June 2024: 0
  - End-July 2024: 0
  - End-August 2024: 0
  - End-September 2024: 0
  - End-October 2024: 0
  - End-November 2024: 0
  - End-December 2024: 150
- External debt from bilateral and private creditors for budget financing 2/:
  - End-January 2024: 0
  - End-February 2024: 0
  - End-March 2024: 0
  - End-April 2024: 0
  - End-May 2024: 0
  - End-June 2024: 0
  - End-July 2024: 0
  - End-August 2024: 0
  - End-September 2024: 0
  - End-October 2024: 0
  - End-November 2024: 0
  - End-December 2024: 0
- External loans for project financing — cumulative flows (In USD millions):
  - End-January 2024: 4
  - End-February 2024: 9
  - End-March 2024: 13
  - End-April 2024: 18
  - End-May 2024: 22
  - End-June 2024: 22
  - End-July 2024: 27
  - End-August 2024: 31
  - End-September 2024: 37
  - End-October 2024: 53
  - End-November 2024: 72
  - End-December 2024: 108
1/ Excluding IMF disbursements.
2/ Including international capital markets.

### C. New Central Government Guaranteed Debt (Continuous Ceiling)
- Definition: ceiling on new CG guaranteed debt (domestic and external) applies to amount of guarantees issued by the CG for debt contracted by any agency or entity outside the CG. A guarantee arises from any explicit legal or contractual obligation of CG to service a debt owed by a debtor outside the CG (payments in cash or in kind).
- Official exchange rate applies to all non-SRD denominated debt.
- Reporting: Data will be provided to the IMF on a continuous basis.

### D. Non-Accumulation of Central Government External Debt Arrears (Continuous Ceiling)
- Definition: continuous performance criterion prohibiting accumulation of arrears by the CG on contractual debt obligations owed to non-resident creditors. External payments arrears are external debt obligations of the CG not paid within 30 days after contractual due date, or within the contractual grace period, whichever is longer.
- Exclusion: arrears for which a rescheduling or restructuring agreement is being sought based on good faith negotiations are excluded.
- Stock of external arrears will be calculated based on external payment obligations reported by the Ministry of Finance and Planning (MoFP) and reconciled with relevant creditors; adjustments will be incorporated as they occur.
- Reporting: Data will be provided to the IMF on a continuous basis.

### E. Gross Credit to Central Government by the CBvS (Continuous Ceiling)
- Definition: ceiling applies to change in gross credit provided to the CG by CBvS (including provision of overdrafts), as a continuous performance criterion measured from end-June 2021 for 2021 and from beginning of the year for 2022. Exclusions: coins and notes issued by the MoFP and claims on IMF related to valuation of IMF account no 1 and 2. Stock of gross credit valued at fair value and program exchange rates. Changes in stock of COVID-19 Fund approved by Parliament in 2020 would constitute gross credit. Rolling over CG principal and interest payments due to CBvS does not constitute gross credit.
- Reporting: Data will be provided to the IMF on a continuous basis.

### F. Net International Reserves (NIR) of the CBvS (Floor)
- Definition: floor applies to cumulative flows from the beginning of the year (end-December level of NIR of the previous year). NIR = U.S. dollar value of difference between reserve assets and reserve liabilities.
- Reserve assets (readily available claims on nonresidents in foreign convertible currencies): (i) foreign exchange (foreign currency cash, deposits with foreign correspondents, holdings of foreign securities); (ii) monetary gold; (iii) IMF reserve position; (iv) SDR holdings. Excluded from foreign assets: assets pledged/collateralized/encumbered; CBvS claims on resident banks and nonbanks; claims in foreign exchange arising from derivatives vis-à-vis domestic currency; precious metals other than monetary gold; assets in nonconvertible currencies; illiquid swaps; any reserve assets not readily available for intervention.
- Reserve liabilities defined as: (i) all short-term foreign liabilities of CBvS vis-à-vis nonresidents in convertible currencies with original maturity of one year or less; (ii) all outstanding credit from the IMF resulting from purchases; (iii) nominal value of all derivative positions implying sale of foreign currency or reserve assets; (iv) all foreign exchange liabilities of CBvS to resident entities (e.g., claims in foreign exchange of domestic banks, non-ring-fenced reserve requirements), excluding foreign exchange liabilities to the CG.
- Table 3. Suriname: International Reserves (USD million, unless otherwise specified) — as of 31-Dec-20:
  - Reserve assets: 128.9
  - IMF reserve position: 2.8
  - IMF SDR: 1.1
  - Foreign currency cash and deposits with foreign banks: 125.0
  - Reserve liabilities: 283.1
  - IMF program disbursements outstanding: 20.9
  - Other liabilities with non-residents: 0.1
  - Liabilities with residents: 262.2
  - Reserve Requirements (non-ringfenced): 5.6
  - Reserve Requirements (the ring-fenced sovereign bond): 10.3
  - Working balance accounts of commercial banks: 69.0
  - Long-term loan to commercial banks: 177.3
  - Other: 0.0
  - Net international reserves: -154.3
  - Source: Central Bank of Suriname.
- Reporting:
  - CBvS will provide data on foreign reserves and foreign exchange cash flow to the Fund once a week.
  - Table 3 statistics will be provided monthly, in both official and program exchange rates, with a lag of no more than two weeks after the end of the month.
  - At each program test date, quarterly NIR data submitted by CBvS to the IMF will be audited by CBvS external auditors in accordance with International Standards on Auditing; external auditor reports submitted to CBvS, with a copy to the IMF, no later than 60 days after each test date.
  - Data on total foreign exchange mineral revenue will be provided by the government to the IMF on a weekly basis. Inflows of government FX mineral revenue to the CBvS will be monitored as part of weekly reporting of CBvS purchases and sales of foreign currency.
- Adjusters to NIR targets:
  1. upward (downward) by the full amount of the cumulative surplus (shortfall) in program loan disbursements from IFIs relative to baseline projections in Table 2 (program loan disbursements defined as external loan disbursements from official creditors usable for CG financing).
  2. upward (downward) by the full amount of the cumulative surplus (shortfall) in loans from official bilateral and private creditors (including international capital markets) relative to baseline projections in Table 2.
  3. upward (downward) by the full amount of the cumulative surplus (shortfall) in the sum of the government’s total mineral and other revenues received in foreign exchange that are transferred to the CG account at the CBvS relative to baseline projections in Table 4. Mineral revenue in FX definition as above; Other FX revenues defined as any revenues in foreign exchange other than mineral revenue.
  4. downward (upward) by the full amount of the cumulative surplus (shortfall) in CG and CBvS’s debt service payments in foreign exchange relative to baseline projections in Table 5.
  5. downward by the amount of FX sales by the CBvS insofar as these sales occur via competitive auctions in response to intraday depreciation in the exchange rate versus the U.S. dollar that is more than 2 percent and are less than USD 2 million per day. This adjustor is capped at USD 20 million per quarter.

- Table 4. Suriname: Total FX Mineral Revenue received by the Government and Other FX Revenues of CG Transferred to CBvS (Baseline Projection) — cumulative flows from beginning of fiscal year (In USD millions):
  - End-June 2023: 46
  - End-July 2023: 67
  - End-August 2023: 89
  - End-September 2023: 117
  - End-October 2023: 135
  - End-November 2023: 153
  - End-December 2023: 170
  - End-January 2024: 19
  - End-February 2024: 38
  - End-March 2024: 65
  - End-April 2024: 80
  - End-May 2024: 102
  - End-June 2024: 112
  - End-July 2024: 143
  - End-August 2024: 158
  - End-September 2024: 184
  - End-October 2024: 200
  - End-November 2024: 215
  - End-December 2024: 224

- Table 5. Suriname: FX Debt Service Payments by the Central Government and CBvS (Baseline Projection) — cumulative flows from beginning of fiscal year (In USD millions):
  - End-June 2023: 76
  - End-July 2023: 92
  - End-August 2023: 112
  - End-September 2023: 121
  - End-October 2023: 136
  - End-November 2023: 163
  - End-December 2023: 204
  - End-January 2024: 21
  - End-February 2024: 54
  - End-March 2024: 59
  - End-April 2024: 82
  - End-May 2024: 117
  - End-June 2024: 180
  - End-July 2024: 214
  - End-August 2024: 240
  - End-September 2024: 256
  - End-October 2024: 279
  - End-November 2024: 316
  - End-December 2024: 372

### G. Net Domestic Assets (NDA) of the CBvS
- Definition: ceiling applies to cumulative flows from the beginning of the year. NDA = reserve money (defined below) minus net foreign assets (NFA).
- Items in foreign currencies are valued at fair value and program exchange rates. As of December 31, 2020, NDA amounted to SRD 8,777.1 million.
- Reserve money at program exchange rates: currency in circulation; commercial banks’ deposits in correspondent accounts at the CBvS; statutory cash reserve requirements against prescribed liabilities in SRDs and foreign currency held by commercial banks at the CBvS; other commercial banks’ deposits at the CBvS in national and foreign currency; other demand deposits in national and foreign currency; and gold certificates (Table 6). Excluded: central bank certificates issued to retail investors as part of open market operations; balances in deposit auctions and commercial banks’ term deposits at the CBvS. As of December 31, 2020, reserve money amounted to SRD 12,816.6 million.
- NFA at program exchange rates: difference between foreign assets and foreign liabilities as defined under NIR.

*Source: IMF program conditionality text as provided in the content unit.*

### 26.      Thus defined, NFA amounted to

### Suriname: NFA, NDA, and Reserve Money (In SRD millions)

### Net Foreign Assets, Net Domestic Assets, and Reserve Money (as of 31-Dec-20)
- Net foreign assets: 4,039.5
- Foreign assets: 8,243.5
- Foreign liabilities: -4,204.0
- Net domestic assets: 8,777.1
- Net claims on the government: 8,234.0
  - Claims on the government in local currency: 9,833.7
  - Liabilities to the government in local currency: -446.8
  - Claims on the government in foreign currency: 144.1
  - Liabilities to government in foreign currency: -1,297.0
- Net claims on commercial banks: -2,495.6
  - Claims on commercial banks in local currency: 2.2
  - Liabilities to commercial banks in local currency: -200.0
  - Claims on commercial banks in foreign currency: 187.0
  - Liabilities to commercial banks in foreign currency: -2,484.7
- Other items net: 3,038.7
- Reserve money: 12,816.6
  - Reserve money in local currency: 7,342.2
  - Reserve money in foreign currency: 5,474.4
- Memorandum item
  - Program exchange rate: 14.018

### Reporting Requirements for Monetary and Fiscal Variables
- Data to be provided to the IMF with a lag of no more than two weeks after the end of the month for NFA reporting.
- Quarterly data on net domestic assets submitted by the CBvS to the IMF will be reviewed by the CBvS external auditors at each program test date; reports should be submitted to the CBvS, with a copy to the IMF, no later than 60 days after each test date.
- Data on direct purchases/sales of FX by the CBvS and/or central government from/to SOEs and private sector will be provided by the CBvS to the Fund daily.
- Reporting lags for other items:
  - Social spending: no more than six weeks after the end of the quarter.
  - Stock of VAT refunds outstanding: no more than six weeks after the end of the quarter.
  - Continuous reporting of CG domestic debt arrears to IMF.

### Adjusters to NDA Targets (consistent with NIR target adjustment mechanism)
NDA targets will be adjusted as follows:
- 1. Downward (upward) by the full amount of the cumulative surplus (shortfall) in program loan disbursements from IFIs relative to the baseline projections reported in Table 2.
- 2. Downward (upward) by the full amount of the cumulative surplus (shortfall) in loans from official bilateral and private creditors (including international capital markets) relative to the baseline projections reported in Table 2.
- 3. Downward (upward) by the full amount of the cumulative surplus (shortfall) in the sum of the government’s total mineral and other revenues received in foreign exchange that are transferred to the CG account at the CBvS, with the exemption of pending transfers of these funds to the foreign bank account of the CBvS, relative to baseline projections reported in Table 6.
- 4. Upward (downward) by the full amount of the cumulative surplus (shortfall) in CG and CBvS’s debt service payments in foreign exchange relative to baseline projections reported in Table 5.
- 5. Downward by the full amount of the CBvS’ cumulative purchases of foreign exchange from the market relative to the baseline projections reported in Table 7.
- For adjusters, these flows will be valued at program exchange rates.

### Direct Purchases/Sales of FX by the CBvS and/or Central Government (Continuous Ceiling)
- The ceiling on direct purchases/sales of FX by the CBvS and/or central government from/to SOEs and private sector is a continuous performance criterion.
- Excluded from this ceiling definition:
  - Purchases/sales of FX with banks and cambios undertaken through fixed allotment/variable price auctions.
  - Sales of FX to (former) CBvS employees for children’s overseas study and livelihood purposes, overseas pension transfers, overseas salary transfers and overseas travel expenses up to a maximum amount of USD 100,000 per quarter or an equivalent thereof in another convertible currency.
  - Purchases of EUR banknotes from banks and cambios in exchange for USD banknotes.
  - Sales of FX by mineral companies associated with these companies’ tax or non-tax obligations to the central government.
- Table 7 baseline projection headings: Cumulative flows from the beginning of the fiscal year (In USD millions) covering End-June 2023 through End-December 2024 (monthly cumulative entries listed for End-June 20230 through End-December 20240 in the source).

### Other Continuous Performance Criteria (during the Arrangement under the EFF)
Suriname will not, during the Arrangement period:
- (i) impose or intensify restrictions on the making of payments and transfers for current international transactions;
- (ii) introduce or modify multiple currency practices;
- (iii) conclude bilateral payments agreements that are inconsistent with Article VIII; and
- (iv) impose or intensify import restrictions for balance of payments reasons.

### Indicative Targets and Definitions
- Social Spending of Central Government (Floor)
  - Definition: cumulative from the beginning of the year; includes all spending of the Ministry of Social Affairs and Public Housing on social protection programs and specifically the sum of spending on:
    - General old-age pension.
    - General child benefit.
    - Financial assistance for persons with disabilities.
    - Financial assistance for weak households.
    - Social beneficiary program.
- Stock of VAT Refunds Outstanding (ceiling)
  - Definition: total cumulative VAT refund claims not yet paid or declined by the Tax Authority of Suriname, cumulative from the beginning of 2023; a claim exists once a credit return is filed; excludes interest on approved delayed refunds and refunds due to non-VAT registrants; deemed paid if settled against payable VAT returns or non-VAT revenue arrears.
- Non-accumulation of new domestic Debt Arrears by the Central Government (Continuous Ceiling)
  - Definition: CG must not accumulate domestic debt arrears on contractual obligations owed to resident creditors; domestic arrears for program monitoring are obligations not paid within 30 days after contractual due date or within contractual grace period, whichever is longer.
  - Exclusions: domestic debt arrears subject to renegotiation or restructuring as of end-2023; domestic debt arrears disputed or under audit as of December 31 2023; arrears owed on supplier credits, VAT refund, and expenditure arrears.
  - Stock calculation: based on the schedule of domestic debt service reported by the Ministry of Finance and Planning (MoFP); reconciled with relevant creditors and adjusted as necessary.

### Information Requirements and Definitions for Debt and Monitoring
- Debt definition (per IMF GFSM 2014 and Public Sector Debt Guide):
  - Total gross debt covers all liabilities that are debt instruments. Debt instruments include:
    - Special drawing rights (SDRs);
    - Currency and deposits;
    - Debt securities;
    - Loans;
    - Insurance, pension, and standardized guarantee schemes;
    - Other accounts payable.
  - Exclusions from debt in GFSM balance sheet: equity and investment fund shares, financial derivatives, and employee stock options.
- Budgetary Central Government (BCG) debt instruments for program purposes:
  - Debt Securities including short term liquidity instruments;
  - Loans (including overdraft in bank accounts);
  - Other Accounts Payables.
  - Net-out rule: liabilities issued by the BCG and held as an asset by another BCG entity should be netted out; central bank lending to the government is included in the stock of BCG debt.
- Required information flows to ensure monitoring (selected items and reporting lags preserved exactly as stated):
  - Daily/Semi-weekly:
    - Official nominal exchange rates.
    - Volumes and nominal exchange rates (inclusive of any fees, commission, or other types of charge) of foreign exchange transactions (purchases and sales) by banks and cambios.
    - Volumes and nominal exchange rates of direct purchases/sales of foreign exchange by the CBvS and/or central government from/to SOEs and private sector.
    - Monitoring Template IMF (no. 25) - Deposits including largest 5 depositors in accordance with the Enhanced Supervision framework, within one week after the reporting period.
    - Monitoring Template IMF (no. 26) – Liquid assets held by banks in accordance with the Enhanced Supervision framework, within one week after the reporting period.
    - Liquidity Coverage SRD template (no. 30) in accordance with the Enhanced Supervision framework, within one week after the reporting period.
    - Net Foreign Currency Position (Net Open Position) template (no. 27) for banks and for cambios, within one week after the reporting period.
  - Weekly/bi-weekly:
    - CBvS liquidity assistance to financial institutions, by institution.
    - Reports on large exposures by bank that are equal or exceed 10 percent of Tier 1 Capital (template no. 28), within two weeks after the reporting period.
    - Large deposits that are equal or exceed 10 percent of Tier 1 Capital (template no. 29), within two weeks after the reporting period.
    - Liquidity forecast and realization (templates no. 15, 17 and 19), within two weeks after the reporting period.
    - Liquidity stress testing (templates no. 10-13), within two weeks after the reporting period.
    - Lending availability in SRD and USD (templates no. 21 and 22), within two weeks after the reporting period.
    - Table on monitoring of banking sector benchmarks in accordance with the Enhanced Supervision framework on a bi-weekly basis, within two weeks after the reporting period.
    - CBvS purchases and sales of foreign currency (FX cash flow table). FX auction amounts, auction bids, highest and lowest prices, cut-off and weighted average prices, FX rate before the auction.
    - Information on auction results for open market operations no later than two days after the auctions, including: instrument type, total open market operations auction volume, settlement date, expiration date, the number of total bids, total amount of bids, the number of total allocated bids, total amount of allocated bids, the minimum bid rate, the cut-off interest rate, the highest bid rate, and the weighted average allotted interest rate.
    - Weekly submission of daily transactions and rates for: interest rates on domestic debt securities by maturity; required and excess reserves of the banking sector in local and foreign currency; total liquidity assistance to banks through normal lending operations, standing facilities, and ELA. Interest rates on OMOs, standing facilities, and ELA by maturity.
    - Weekly submission of daily mineral tax and non-tax revenue of major commodity companies and small gold miners, by revenue item and type of commodity (and separately for large-scale gold companies and small-scale gold miners). Data is to be provided within 3 working days of the end of each week.
  - Monthly (selected items and reporting lags):
    - CG operations (revenues and expenditure) data in GFS format within six weeks of the end of the month.
    - CG detailed revenues data from the tax office by revenue category within six weeks of the end of the month.
    - Number of public civil servants and total wage bill by Ministry within six weeks of the end of the month.
    - CG authorized spending data by Ministry within four weeks of the end of the month.
    - CG subsidies data by Ministry and programs within six weeks of the end of the month.
    - CG balance from the financing side by sources and by currency, with a lag of no more than six weeks after the end of the month.
    - CG domestic and external debt stock, including by: (i) creditor; (ii) currency; (iii) instrument; (iv) collateralized by natural resources revenue; and (v) guaranteed. Reporting lag: no more than four weeks after the end of the month.
    - Amortization payments of CG and government guaranteed debt by creditor, instrument, and currency. Reporting lag: no more than four weeks after the end of the month.
    - Interest payments and fees on CG and government guaranteed debt by creditor, instrument, and currency. Reporting lag: no more than four weeks after the end of the month.
    - Stock of CG expenditure arrears, separately including payment of existing arrears and creation of new domestic arrears including the currency of the arrears. Reporting lag: no more than four weeks after the end of the month.
    - Stock of CG domestic and external debt arrears, including the currency of arrears. Reporting lag: no more than two weeks after the end of the month. Stock of CG domestic debt arrears should provide breakdown on confirmed arrears and arrears under dispute/being audited.
    - New debt contracts (official or private) entered into by the CG and/or SOEs. Reporting lag: no more than two weeks after the end of the month.
    - Holdings of domestic T-notes and T-bills (SRD-denominated and foreign currency-denominated) by investor, maturity, and currency. Reporting lag: no more than four weeks after the end of the month.
    - Legal measures that affect the revenue of the CG, such as tax rates, import tariffs, and exemptions. Reporting lag: no more than six weeks after the end of the month.
    - Balance sheet of the CBvS within two weeks of end of the month.
    - A summary of the monetary survey of the banking system within six weeks after the end of the month.
    - Income statement of the CBvS on a cash and accrual basis, with a lag of no more than three weeks from the end of the month.
    - Projections of CBvS purchases and sales of foreign currency (FX cash flow table, 12 months ahead).
    - Information on interconnectedness of the financial sector and related party lending (templates no. 6 and 37), within four weeks after the end of the month.
    - The deposit funding structure of the banks (template no.8), within four weeks after the end of the month.
    - Information on measures taken by the banks in the context of the COVID-19 pandemic (templates no.33-35), within four weeks after the end of the month.
    - Banks’ claims on the government and State-owned Entities with breakdown by type within four weeks after the end of the month.
    - The Monthly Returns as reported to the CBvS, within four weeks of the end of the month.
    - A written update on the progress of the Asset Quality Review (until the review has been concluded).
    - Data on foreign reserve assets and foreign reserve liabilities for NIR target purposes (Table 2) evaluated at both official and program exchange rates, within two weeks of the end of the month.
    - Data on NDA, NFA, and reserve money (Table 4) evaluated at both official and program exchange rates, within two weeks of the end of the months.
    - Data on foreign reserve assets split into ring-fenced and non-ring-fenced assets evaluated at official exchange rates, within two weeks of the end of the months.
    - Consumer price index, including by sub-components of the CPI index within four weeks after the end of the month.
    - Cash flow of EBS showing government transfers to cover the gap between the average electricity tariff and EBS recovery cost within eight weeks after the end of the month.
    - Electricity average tariff, total electricity consumption volume, total billing and amount collected (in SRD) by consumption categories and by consumption volume, within eight weeks after the end of the month.
    - Electricity costs (production costs: fuel costs, Staatsolie electricity costs, hydropower costs; other operational costs: personnel costs and financing costs; investment costs) within eight weeks after the end of the month.
    - EBS committed and executed payments to Staatsolie for purchases of fuel and electricity within eight weeks after the end of the month.

*Source: Central Bank of Suriname.*

### 48.      Quarterly

### Quarterly

### Data reporting and timetables
- Detailed balance of payments data within 60 days after the end of the quarter.  
- Detailed International Investment Position data within two months after the end of the quarter.  
- Projections regarding banks’ balance sheets and profit and loss statement (template no. 2 and 3) in accordance with the Enhanced Supervision framework, within four4 weeks after the end of the quarter.  
- Liquidity forecast and realization (templates no. 14, 16 and 18) in accordance with the Enhanced Supervision framework, within four weeks after the end of the quarter.  
- Progress reports of the banks on inspection items identified by CBvS, within six weeks after the end of the quarter.  
- A full set of quarterly Financial Soundness Indicators (FSI) calculated by the CBvS within 60 days after the end of the quarter.  
- CG spending on social protection programs, by program, as defined for the indicative target on social spending. The reporting lag should not exceed six weeks after the end of the quarter.

### Recent developments and outlook
- Economic growth:
  - Expected to grow by 3.0 percent in 2024, after growth of 2.1 percent in 2023.
  - 2023 growth driven primarily by investments in public and private non-mining sectors; reduced gold production limited growth.
  - Continued public and private investments anticipated in 2024, including substantial upstream and midstream investments contingent on TotalEnergies' Final Investment Decision (FID) later this year.
- Inflation:
  - End-2023 inflation: 32.6 percent.
  - End-of-period inflation forecast for 2024 revised down from 14.2 percent to 12.7 percent, reflecting a stringent monetary policy stance and subdued inflation rates in the first half of the year.
  - Currency appreciation and despite utility tariff increases, inflation has remained relatively low.

### Fiscal, social, and tax policy actions
- Fiscal consolidation and expenditure control:
  - Authorities responded to 2024 revenue shortfalls and overspending by increasing revenue capacity and containing expenditures.
  - Measures to control expenditures include containing wages and salaries’ increases, limiting overtime and fuel consumption, encouraging ministries to stay within budget, constraining new hirings of civil servants, and implementing automatic monthly caps on expenditures via MoFP.
  - With elections in May 2025, maintaining strict cost control is emphasized.
- Revenue measures and VAT:
  - Working group installed to monitor and review all non-tax revenues; consultations with ministries and stakeholders ongoing.
  - Increased enforcement of tax compliance has lifted tax revenues.
  - VAT implementation has been evaluated three times; CARTAC providing technical assistance to improve VAT implementation; improvements in registration, declaration, compliance, and institutional strengthening of the tax authority noted.
- Electricity subsidy reform and tariffs:
  - Phasing-out of electricity subsidies proceeding securely to dismantle cross-subsidy and cross-payment schemes.
  - February 2024: 20 percent adjustment in the exchange rate used for cost calculations, bringing it to market values.
  - March 2024: electricity tariff to households increased by 40 per cent, with four subsequent bi-monthly 7 per cent hikes planned.
  - Businesses: initial 40 per cent increase from May 2024, leading to cost-recovery tariffs by June 2024.
  - EBS fuel payment to State Oil Company amounted to approximately SRD 440 million a month for the first three months of 2024; reduced to SRD 130 million for five months starting in May and will be reduced to zero in the last quarter this year.
- Social spending and arrears:
  - Ministry of Social Affairs improving administration and distribution mechanisms to meet the indicative floor for social spending; target for first half of 2024 met.
  - MFoP monitoring and regulating social spending monthly to avoid negative impact on the primary balance.
  - Stock of supplier arrears (January 2022 up to July 2024) is SRD 4.4 billion; previous stock SRD 7.1 billion at end-2023. Reductions largely due to IFMIS reconciliation, clearing of paid vouchers wrongly recorded, cancelled and re-issued vouchers reconciliation, and regular payments of arrears. Further decreases expected.

### Debt management and sustainability
- 2024 budget allocates approximately USD 395 million, or 7.5 percent of GDP, for repayment of central government debt (excluding supplier debt).
- Authorities committed to promptly clear all remaining non-technical domestic debt arrears.
- Progress on inclusion of the Value Recovery Instrument (VRI) in the Savings and Stabilization Fund Law (SSF); amendment approved by the Council of Ministers and after approval by the State Council will be sent to Parliament for final consideration and enactment by the President before year end.
- Strengthening of Suriname Debt Management Office (SDMO) capacity ongoing with Commonwealth Debt Management Program financing from the Inter-American Development Bank (IDB).
- On August 26, 2024, the Minister of Finance and Planning and the Governor of the Central Bank of Suriname signed an agreement to recapitalize the central bank for losses experienced in 2020-2021, through the issuance of local government bonds at the beginning of January 2025.

### Monetary and financial sector policies and reforms
- Monetary policy and liquidity:
  - Monetary policy tightened SRD liquidity conditions, supporting disinflation via CBvS open market operations (OMOs) and a higher local currency reserve ratio.
  - CBvS met all monetary QPCs and the indicative target for base money of June 2024.
  - CBvS deployed a new statistical framework with IMF technical assistance, improving government accounting data accuracy and liquidity forecasting.
  - CBvS enhanced commercial bank participation in open market operations and is working on digitalizing processes and improving liquidity facility use.
- Financial sector reforms and supervision:
  - Banks submitted NPL reduction strategies approved by CBvS except for three banks requiring more time.
  - Bank recapitalization progressing with focus on interim targets and corrective measures.
  - Risk-based supervision enhanced and aligned with international standards under amended Banking Supervision Act and Bank Resolution Act, expanding CBvS intervention powers and strengthening supervision of state-owned banks.
  - All structural benchmarks related to banking supervision under the program achieved within set deadlines.
  - Ongoing revisions of regulations: Group 1 regulations completed; Corporate Governance Code, Fit & Proper regulation, and sound governance regulation under revision.
  - Future priorities: insurance and pension sectors, capital markets, electronic payment systems, credit reporting, and deposit insurance frameworks, supported by technical assistance.

### Exchange rate and FX market policies
- Tighter monetary policy contributed to consistent currency appreciation since the last quarter of 2023, with some recent depreciation evident as demand picks up.
- Positive market sentiment mitigates risks of excessive currency depreciation.
- Progress on electronic FX trading platform: banks required to sign up on the complete trajectory of electronic FX trading.
- CBvS issued revised FX auction rules and regulations after consulting with Fund staff, consistent with IMF’s Article VIII provisions.

### Governance reforms and institutional transparency
- CBvS governance and independence:
  - CBvS published audited financial statements for 2021 in accordance with IFRS standards.
  - CBvS on schedule to release audited IFRS financial statements for 2022 by December 2024.
  - Time-bound strategy for CBvS recapitalization completed, including provisions for further recapitalization if future financial statements indicate a need.
- Procurement and anti-corruption:
  - Amendment of procurement law to align domestic procedures with Caricom practices to strengthen governance; amended Procurement Law under discussion at Parliament and expected on the agenda after the recess in September.
  - Amended Procurement Law will ensure centralization and transparency of procedures and processes, and publication of names of public officials involved with Government procurement, awarded entities and their beneficiary owners.
  - Efforts underway to align the Anti-Corruption Law with related domestic legislation and the United Nations Convention against Corruption (UNCAC), which Suriname ratified in November 2021.

### Concluding assessment and risks
- Overall program performance described as positive with restoration of macroeconomic stability, continued economic growth, and renewed confidence in the local currency as inflation declines.
- Implementation of key measures has become more challenging; both upside and downside risks present.
- Political factors and upcoming elections intensify difficulties in advancing the reform agenda.
- Authorities remain committed to pursuing energy subsidy reforms, public sector adjustments, procurement and anti-corruption initiatives, customs compliance improvements, exploration of non-tax revenues, building broad support for reforms, and strengthening institutions to manage abundant resources over the medium term.

*Statement by Mr. Andre Roncaglia, Executive Director for Suriname, Mr. Bruno Saraiva, Alternate Executive Director, and Mr. Karel Steven Eckhorst, Advisor — September 18, 2024*

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_Source: https://www.imf.org/-/media/files/publications/cr/2024/english/1surea2024004-print-pdf.pdf_