PARAMARIBO, Suriname, CMC – Finance and Planning Minister Stanley Raghoebarsing says Suriname’s economic recovery program supported by the International Monetary Fund (IMF) ends in March next year and that “there will be no new measures.
“All policy measures have already been taken. It is now mainly about enforcing those policy measures,” Raghoebarsing told reporters, adding that the government must ensure that they are implemented as agreed with the IMF.
Raghoebarsing said that between now and March next year, he sees no issues that could prevent a successful conclusion of the program and is looking forward “to the end of the program with excellent feelings.”
“We need the EBS (Energy Companies Suriname) income. Otherwise, our social program or the entire budget will be in danger, and we don’t want that,” Raghoebarsing said, noting that when the recovery program started three years ago, at least 20 pages of measures had to be implemented.
“They have all been taken. We now have half a page left of measures that still have to be taken,” Raghoebarsing said.
One situation for Suriname is the transfer of the extra energy income from the EBS to the government. Raghoebarsing notes that there are still some bumps in the road with the EBS transfers.
“There is a problem somewhere in their income and expenditure cash flow that needs to be investigated. We need that income; otherwise, our social program or the entire budget will be in danger, and we do not want that,” he said, adding that he does not have the impression that there is any unwillingness or opposition at the EBS to transfer the resources fully.
The government is also moving to amend the Anti-Corruption Act by February 2025.
The IMF has recently carried out the regular Article IV mission, and Raghoebarsing said he hopes that the eighth review will also be concluded successfully with the approval of the IMF board, which will decide in December.
In September, the IMF executive board completed the seventh review under the Extended Fund Facility (EFF) arrangement for Suriname, allowing for an immediate release of US$63 million, of which US$25.8 million would be for budget support, bringing total program disbursement to US$455 million.
The IMF said then that the authorities’ commitment to maintaining prudent macroeconomic policies and implementing difficult reforms are yielding positive results:
- The economy is growing.
- Inflation is coming down.
- International bond spreads are at record lows.
- Investor confidence is returning.
The final evaluation will occur in February next year, after which the program will be terminated.
Meanwhile, Raghoebarsing believes that the “patient” Suriname is now “stable but not yet ready to go to a dance on Saturday night.”
Guscina, Raghoebarsing, the IMF’s executive director, André Rongaglia, and the Governor of the Central Bank of Suriname, Maurice Roemer, appeared at a news conference to discuss the financial situation with Suriname.
“I am happy with the mission results,” Guscina said, adding, “In four months, Suriname can promote itself to the IMF program.
“That will be a historic event because it is the first time Suriname has completed an IMF program. I am hopeful that this evaluation will be successful. And I am also hopeful for the last one. The mission will come in February (2025), and we will go to the board in March,” Guscina said.
Raghoebarsing told reporters that the IMF program is “not pleasant” but necessary.
“We knew that the patient had fainted in intensive care. What we have done now is recover and stabilize. It is not that we can go dancing on Saturday night. We are not there yet. But that program was necessary to save the patient.
“That rescue operation was successful. Suriname is stable. Suriname can carefully leave the hospital. Carefully walk again, eat, drink, and pick up the normal things of every day. But there is still work to be done,” Raghoebarsing said.
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