IMF Reaches Staff-Level Agreement on the Final Review under Suriname’s Extended Fund Facility Arrangement

IMF News, March 10, 2025

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Canonical URL: IMF Reaches Staff-Level Agreement on the Final Review under Suriname’s Extended Fund Facility Arrangement

An IMF team led by Ms. Anastasia Guscina conducted discussions with the Surinamese authorities during February 5-14 to complete the ninth and final review of the 36-month Extended Fund Facility approved by the IMF’s Executive Board in December 2021.
The IMF staff and the Surinamese authorities reached a staff‑level agreement on the ninth and final review of the authorities’ economic recovery program supported by the EFF.
The staff‑level agreement is subject to approval by the IMF’s Executive Board and contingent on the fulfillment of all relevant Fund policies.

Subject to approval by the IMF’s Executive Board, Suriname would have access to about USD 61.3 million (SDR 46.8 million).
Upon completion of this review, Suriname will have access to SDR 46.8 million (about USD 61.4 million), bringing total program disbursements to date to SDR 430.7 million (about USD 565.4 million).

All quantitative targets for the final review were met except the primary fiscal balance target.
The authorities are taking policy steps to ensure that the 2.7 percent of GDP primary surplus target for 2025 remains within reach.
The end‑December primary balance target was missed mainly due to:
- Underperformance of non‑tax revenues.
- Overspending on electricity subsidies.
- Government support to rice farmers that lost their crops due to drought.
The authorities are implementing corrective measures to bring the fiscal path in line with the 2025 budget.
The authorities’ main near‑term policy priority is to maintain fiscal discipline in the run up to the elections while protecting the vulnerable.

Recent legislative actions:
- Approval by the National Assembly of amended public financial management law incorporating a fiscal rule.
- Approval of a Savings and Stabilization Fund law.
These steps are described as good progress toward strengthening the fiscal and institutional frameworks to efficiently and transparently manage upcoming oil revenues.
Over the medium term, addressing governance weaknesses and strengthening the fiscal framework, including through the operationalization of new fiscal rules and strengthened institutional framework, will enable Suriname to sustainably and transparently manage its oil revenues.

The government met the indicative target on social assistance spending for end‑December 2024 with a sizeable margin.
Overall, spending on social protection has more than doubled in percent of GDP terms over the course of the program.
Stronger efforts are needed to address challenges in the execution of the social beneficiary program to ensure benefits reach intended beneficiaries, particularly in the country’s interior regions.
The authorities should promptly implement the recently completed strategic plan to enhance the effectiveness of social protection with the support of development partners.
Protecting the poor and vulnerable has been high on the agenda.

Debt restructuring is largely complete, boosting investor confidence.
An umbrella agreement with the Paris Club for the second phase of debt restructuring was signed in October, facilitating negotiations with individual Paris Club creditors.
Negotiations are underway to restructure debt with the last remaining commercial creditor.
Domestic debt arrears have been repaid and the government has been servicing all debt obligations on time.
Credit rating agencies have upgraded Suriname’s debt ratings and international bond spreads are at historic lows.

The Central Bank van Suriname (CBvS) met all the monetary targets for the final review.
The continued restrictive monetary policy stance has further reduced inflation.
The CBvS remains committed to a flexible, market‑determined exchange rate and is working to improve the functioning of the foreign exchange market, including through the recently launched electronic foreign exchange trading platform.
The recapitalization of CBvS has been completed in line with the requirements of the Central Bank Act.
Vulnerabilities in the banking system are being addressed:
- Timely completion of recapitalization plans of banks with capital shortages is essential.
- Prudent monitoring of capital adequacy, liquidity and asset quality of banks is essential to preserve stability.
- The CBvS needs to increase its monitoring of non‑bank financial institutions, particularly with respect to their interconnectedness with the banking system.

The authorities have implemented most structural reforms under the program.
With IMF support, important steps have been taken to amend the anti‑corruption legal framework to strengthen the income and asset provision for politically exposed persons; this amendment should be promptly enacted and implemented.
Transparency of public officials’ asset holdings is recommended to lessen vulnerability to corruption associated with massive oil revenues.
It is important to work towards getting the suspension lifted from the Extractive Industries Transparency Initiative.
Broader structural reforms are necessary to increase efficiency, transparency, and accountability in the energy sector.

Suriname’s medium‑term outlook has improved significantly with the announcement of the final investment decision (FID) paving the way for offshore oil production beginning in 2028.
The authorities face important near‑term risks, including capacity constraints and policy implementation challenges reflecting the increasingly difficult socio‑political environment.

Meetings were held with the President and Vice President of the Republic of Suriname, the Minister of Finance and Planning, the Minister of Spatial Planning and Environment, the Minister of Justice and Police, the Minister of Internal Affairs, the Central Bank Governor, the leadership and the finance committee of the National Assembly, other senior government officials, the leadership of the major opposition parties, civil society organizations, representatives of the private sector, and development partners.
The mission thanked the authorities for a collaborative and fruitful dialogue.

IMF Communications Department — Press Release No. 25/56; March 10, 2025