## Statement by the International Monetary Fund Managing Director on Suriname

_IMF News, July 29, 2021_

## Source details

**Canonical URL:** [Statement by the International Monetary Fund Managing Director on Suriname](https://www.imf.org/en/news/articles/2021/07/29/pr21236-suriname-statement-by-the-international-monetary-fund-managing-director)

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## Bibliographic details
- Published: July 29, 2021

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### Executive Board briefing and request
- 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.”

### Suriname’s policy actions and progress
- 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.

### Role of creditors and financing assurances
- 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.

### Next steps and conditions for IMF support
- 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.

### Press and contact information
- Press Release No. 21/236
- Date of statement: July 29, 2021
- IMF Communications Department — MEDIA RELATIONS
- PRESS OFFICER: Randa Elnagar
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Twitter: @IMFSpokesperson

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

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## References

- [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)
- [Suriname and the IMF](http://www.imf.org/external/country/SUR/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 21/116](https://www.imf.org/en/News/Articles/2021/04/29/pr21116-suriname-imf-reaches-staff-level-agreement-with-suriname-on-3-year-program-under-eff)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2021/07/29/pr21236-suriname-statement-by-the-international-monetary-fund-managing-director_