WASHINGTON, CMC -The International Monetary Fund (IMF) has granted Suriname a waiver for nonobservance of a performance criterion and will also allow the Dutch-speaking Caribbean Community (CARICOM) country to draw down US$62 million, bringing its total disbursement to an estimated US$323million.
The Washington-based financial institution said that its executive board had completed the fifth review under the 36-month Extended Fund Facility (EFF) arrangement that was approved on December 22, 2021, in an amount of US$688 million.
It said that since then, Suriname had been steadily implementing an ambitious economic reform agenda aimed at restoring fiscal and debt sustainability through fiscal consolidation and debt restructuring, protecting the vulnerable by expanding social programs, upgrading the monetary and exchange rate policy framework, addressing the financial sector’s vulnerabilities, and advancing the anti-corruption and governance agenda.
`The authorities’ commitment to fiscal discipline and macroeconomic stabilization under the EFF-supported program is paying off. The economy is growing, inflation is on a steady downward trend, and investor confidence is improving. Near-term downside risks highlight the importance of maintaining the reform momentum to secure hard-won gains,” said IMF Deputy Managing Director Kenji Okamura.
He said Suriname’s determination to carry out politically challenging reforms is commendable, that all quantitative performance criteria for this review were met, and that structural reforms are proceeding, albeit with some delays.
“The near-term priority is to preserve fiscal discipline to put public debt on a firmly downward path and build resilience to future shocks. The authorities’ commitment to removing unregistered and chronically absent workers from the public payroll will help create fiscal space for a more meaningful wage increase for productive civil servants.”
He said that gradually phasing out electricity subsidies will help finance higher social assistance spending and channel more resources toward growth-enhancing investment. He also said that ensuring the efficient and effective allocation of social expenditures remains paramount. Okamura said more robust commitment controls to prevent the accumulation of supplier arrears are also a priority.
“Noteworthy progress has been made with debt restructuring. Bilateral agreements with all official creditors have been completed, and the debt exchange with private external bondholders has been finalized. Domestic debts to the central bank and commercial banks have been restructured. The priority is to clear domestic debt arrears promptly.”
The IMF deputy managing director said that monetary policy is supporting disinflation and that the authorities’ demonstrated commitment to a flexible, market-determined exchange rate is helping to accumulate international reserves.
Okamura said the recent approval of recapitalization plans for banks with capital shortages and the governance framework for state-owned banks are necessary to address banking sector vulnerabilities.
He said prompt finalization of the central bank recapitalization plan will help further strengthen its operational independence and financial autonomy.
“The authorities should persevere with their ambitious structural reform agenda to strengthen institutions, governance, and data quality, including with continued capacity development support from the Fund and other development partners,” said Okamura.
and then  has granted Suriname a waiver for nonobservance of a performance criterion){kind=link}