PARAMARIBO, Suriname, CMC – The International Monetary Fund (IMF) has expressed its intention to continue its relationship with Suriname under the leadership of President-elect Jennifer Geerlings-Simons.
IMF Managing Director Kristalina Georgieva, in a congratulatory letter dated July 10, wished Geerlings-Simons much success in her new role and expressed the IMF’s willingness to work closely with her government.
In April, the Washington-based financial institution said it was providing US$62 million to Suriname after its executive board approved the ninth and final review under the Extended Fund Facility (EFF) arrangement with the Dutch-speaking Caribbean Community (CARICOM) country.
It said that the new funds brought to US$572 million, the total programme, and that in completing the review, the executive board approved Suriname’s request for a waiver of non-observance of the end-December 2024 performance criteria on the central government primary balance based on the corrective actions the authorities have already taken.
In 2021, the IMF executive board approved Suriname’s EFF arrangement with the country pursuing an ambitious economic reform agenda to restore macroeconomic stability and debt sustainability, while laying the foundations for strong and more inclusive growth.
The programme focused on restoring fiscal and debt sustainability, protecting the poor and vulnerable, upgrading the monetary and exchange rate policy framework, addressing banking sector vulnerabilities, and advancing the anti-corruption and governance reform agenda.
In May, the Governor of the Central Bank of Suriname (CBvS), Maurice Roemer, said whichever government emerges from the May 25 general election here, the priority should be to link economic policy to a new IMF programme structurally.
In an interview with the Suriname-based online publication, Starnieuws, the CBvS governor said that despite the IMF programme being a success, Suriname is still far from where it should be.
“On the contrary, there is still a long road ahead of us,” Roemer said, fearing that the country’s economy will end up in a deep crisis again if no new programme is agreed with the IMF, even with the expected revenues from future oil production.
The incoming president, who will be sworn into office on Wednesday, has previously indicated that she is “in discussions with the IMF,” but that this does not automatically mean her government will embark on an aid programme like the outgoing Santokhi government had done.
“We are looking at what is best for Suriname, not what is customary,” Geerlings-Simons recently stated.
In the congratulatory letter, the IMF managing director emphasizes the IMF’s willingness to continue supporting Suriname with “policy advice, financing, and capacity building,” as in previous years.
“Through policy advice, financing, and capacity development, macroeconomic stability has been restored and favorable conditions have been created for sustainable and inclusive growth,” Georgieva wrote, noting that “further efforts are needed to sustain this stability and build the right institutional frameworks for the responsible management of the recently discovered oil reserves”.
According to Georgieva, cooperation with the IMF has led to the restoration of macroeconomic stability in Suriname and created favorable conditions for “stronger, more inclusive growth”.
The letter also underscores the importance of further institutional strengthening and sustainable management of the recently discovered oil reserves.
“Focused efforts are needed to anchor macroeconomic stability and establish an appropriate institutional framework for managing oil revenues,” Georgieva said, concluding her letter with a clear statement of support for Geerlings-Simons’ vision, which she said is focused on strengthening domestic institutions and creating better opportunities for youth.
“We at the IMF stand ready to work with you and your team to build a better future for all Surinamese people,” the IMF managing director said.
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