PARAMARIBO, Suriname, CMC -Finance and Planning Minister Stanley Raghoebarsing says Suriname has taken most of the problematic measures aimed at stabilizing the economy in the Dutch-speaking Caribbean Community (CARICCOM) country, including the controversial decision to increase electricity rates.
But he told a news conference that the International Monetary Fund (IMF) will release four evaluation reports of the local economy in the coming months, and Paramaribo could receive at least US$53 million for each “positive” assessment report.
Earlier this month, a staff team from the Washington-based financial institution said it had reached a staff-level agreement with the Surinamese authorities on the fifth review of the country’s home-grown economic recovery program that is being supported by the Extended Fund Facility (EFF).
“This staff-level agreement is subject to approval by the IMF’s Executive Board, contingent on fulfilling all relevant Fund policies. Upon completion of this review, Suriname will have access to SDR 46.7 million (about USD 62.5 million), bringing total program disbursements to date to SDR 243.7 million (about USD 326 million),” the IMF said then.
Raghoebarsing said the following IMF review is scheduled for May and expects it to be positive.
“Normally, the tranches are US$53 million. The hat goes to the Central Bank and Finance. Four tranches remain, which will continue until the end of March 2025. Then, this program and the loans will end.
“I hope that we can then stand on our own two feet. It will work, and we will keep moving forward at this time. Standing on two feet means the debts can be repaid independently. That’s not possible now,” Raghoebarsing told reporters.
The Finance and Planning Minister said the IMF program will end in March 2025, and Suriname will be strong enough to pay off its international debt independently.
Raghoebarsing said the IMF program is running smoothly and that the government has received support from foreign organizations for its commitment to turn the economy around.
“We try to solve problems that have developed and built up over 40 years in four years. That is not always possible. However, what Suriname and the Surinamese people have achieved is still respectable.
“This has led to us as a country having four positive reviews in a row within ten months. We will immediately receive a positive credit rating. That prices are slowly but surely falling. Our international reserves at the Central Bank have been rebuilt, and there is peace and order there. The international interest rate for Suriname is decreasing, which means the risks are decreasing. There will be a new credit rating in the not-too-distant future,” Raghoebarsing said.
He said it is essential now for the population to begin experiencing these benefits. However, efforts are already being made to improve purchasing power with social benefits, increases, allowances, and adjustments to tax brackets.
The Finance and Planning Minister said that 30 percent of the budget is spent on social policy programs. The last measure in the program is the phasing out of the electricity subsidy, and the government will continue to help most consumers meet their obligations.
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