Suriname: Request for an Extended Arrangement under the Extended Fund Facility-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Suriname
IMF Staff Country Reports, December 23, 2021
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- Suriname: Request for an Extended Arrangement under the Extended Fund Facility-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Suriname
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Bibliographic details
- Published: December 23, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616359799.002
Major macro-financial imbalances and causes
- Suriname faces systemic fiscal and external imbalances as a result of many years of economic mismanagement.
- Usable foreign reserves were depleted.
- In the absence of other sources of budget financing, fiscal deficits were monetized.
- Inflation has, as a result, surged.
- There has been a significant depreciation of the exchange rate.
- Public debt, at 148 percent of GDP at end-2020, is unsustainable.
- There are important solvency problems embedded in the domestic banking system.
Key findings and implications
- Fiscal deficits were financed through monetary expansion when other financing sources were unavailable, contributing to inflationary pressures.
- Reserve depletion and exchange rate depreciation signal acute external vulnerability.
- Very high public debt (148 percent of GDP at end-2020) implies unsustainability and likely need for comprehensive debt strategy.
- Banking-system solvency problems indicate risks to financial stability and potential need for bank-sector interventions.
Publication and document facts
- Publication date: December 23, 2021
- Series: Country Report No. 2021/280
- Pages: 111
- Issue: 280
- DOI: https://doi.org/10.5089/9781616359799.002
- ISBN: 9781616359799
- ISSN: 1934-7685
- Stock No: 1SUREA2021001
- Subjects: Arrears, Exchange rates, External debt, Foreign exchange, International organization, Monetary base, Monetary policy, Money, Public debt
- Keywords: Arrears, Caribbean, Exchange rates, Global, government of Suriname, Monetary base, staff appraisal, staff representative, Surinamese authorities, term deposit
International Monetary Fund. Western Hemisphere Dept. "Suriname: Request for an Extended Arrangement under the Extended Fund Facility-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Suriname", IMF Staff Country Reports 2021, 280 (2021).
Content in this bundle
- Executive Summary