Statement by the International Monetary Fund Managing Director on Suriname

IMF News, July 29, 2021

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At an Executive Board meeting held July 29, 2021, staff updated Executive Directors on recent developments in Suriname and the authorities’ request for an arrangement under the Extended Fund Facility (EFF).
The Managing Director, Ms. Kristalina Georgieva, issued a statement following the meeting.
IMF commitment: “We are committed to working diligently in the coming weeks to ensure that the authorities’ request for an arrangement can be expeditiously presented to the IMF’s Executive Board for its consideration.”

The statement notes that President Chan Santokhi’s administration inherited a very difficult economic situation and has undertaken a broad range of policy actions to restore macroeconomic stability.
Recent policy measures implemented by the authorities include:
- Passing a budget in the legislature with accompanying revenue measures to help restore fiscal sustainability.
- Increasing spending on social protection programs for the most vulnerable.
- Unifying the official and parallel exchange rate.
- Putting in place a new monetary policy framework intended to help bring down inflation.
- Ending monetary financing of the budget.
- Taking steps to significantly improve the targeting of electricity subsidies.
The statement observes that the authorities have delivered on most of the prior actions agreed in the staff-level agreement reached in April.

Official and private creditors are identified as having an essential role in supporting Suriname’s efforts to:
- Put its economy on a better path.
- Tackle its high debt burden.
- Restore debt sustainability.
Financing assurances from Suriname’s various creditors are described as crucial before the IMF can provide financial support to Suriname.
The statement welcomes continued discussions between the Surinamese authorities and creditors to obtain these assurances speedily.

The Staff-Level Agreement reached on April 29 envisages a 36-month Extended Fund Facility with access equivalent to SDR 472.8 million (about US$ 690 million).
The Staff-Level Agreement is subject to Executive Board review, which is pending:
- Completion of the full set of prior actions.
- Provision of financing assurances on debts owed to official bilateral creditors.
- Having a credible process in place toward debt restructuring from private creditors.

Source: International Monetary Fund press release, July 29, 2021.