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It has just been announced that the executive board of the International Monetary Fund (IMF) has approved a loan of nearly US$690 million for Suriname. This will be used to support the recovery program.
The IMF meeting where Suriname is on the agenda started around 4:30 pm Surinamese. The Surinamese government will also release a live broadcast afterwards. At 8 pm there will be a live zoom conversation via GovTv channel 8.3, STVS, SRS and Boskopu, with Mr Karel Eckhorst as a guest, to explain more about the outcome.
The Surinamese government reports the following about this:
The Executive Board of the International Monetary Fund (IMF) today approved a 36-month arrangement. From the Extended Fund Facility (EFF) for Suriname, 472.8 million Special Drawing Rights (SDRs) (approximately $688 million or 366.8 percent of Suriname’s quota) will be made available to support the government’s Economic Recovery Plan .
The Executive Board has authorized the immediate transfer of SRD 39.4 million (approximately USD 56.4 million). The rest of the amount will become available in phases.
This is a milestone for the implementation of the Recovery Plan (HP). The HP aims to ensure sustainable and balanced growth for the economy.
The financial arrangement of the IMF will support the Recovery Plan prepared by Suriname. It will help to reduce public debt and build resilience. Social spending will also be expanded to support the most vulnerable groups. In addition, technical assistance for the reforms will be provided by the development partners of the IMF, notably the Inter-American Development Bank and the World Bank.
The arrangement will also pave the way for an orderly debt restructuring, whereby the repayment of Surinamese debts will be made in a sustainable manner.
In response to this, Finance and Planning Minister Armand Achaibersing said: “I am very pleased that it has finally been possible for the Executive Board of the IMF to provide the financial support to Suriname. It took many months of diplomatic lobbying to achieve this. And that in addition to the implementation of a challenging reform agenda. But now we have a decision. This is a very important milestone for President Santokhi’s government. The government has inherited many economic challenges, in addition to major fiscal and financial needs and weak and unbalanced growth. However, it also shows that the government is committed and has a plan and method to address long-term structural weaknesses and put the Surinamese house in order. Not only do we repair the roof, but against the background of what we found, we also lay a new foundation. The sacrifices asked of the population to put Suriname on a path of prosperity will bear fruit in the coming months.”
The Government of Suriname reiterates its appreciation for the support of the international partners.
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