PARAMARIBO, Suriname, CMC -Suriname is to become the latest Caribbean Community (CARICOM) country to join the Egypt-based African Export and Import Bank (Afreximbank) after the National Assembly unanimously backed the country’s application to join the financial institution.
In December 2022, the board of directors of Afreximbank, established in 1993, approved US$1.5 billion in funding to enable CARICOM member states that have ratified the Partnership Agreement with Afreximbank to access the bank’s various financial instruments.
The approval follows the accession of nine CARICOM member countries to the Afreximbank Partnership Agreement, which was launched on 1 September 2022 at the first Africa-Caribbean Trade and Investment Forum (ACTIF) held in Bridgetown, Barbados. Haiti has since become the 12th CARICOM country to join the bank.
Late Tuesday, all 36 legislators approved the Dutch-speaking CARICOM country joining the bank amid concerns about its immunity and the many private fees that the bank and its employees enjoy.
Afreximbank is to establish an office in Barbados, and the agreement allows Surinamese companies to take out loans of five million US dollars or more.
Before the vote, Finance and Planning Minister Stanley Raghoebarsing made some changes to the draft law that provides the legal basis for accession after the various debates on Tuesday.
Gregory Rusland of the National Party of Suriname (NPS) told the National Assembly that the country is currently not in a position to refuse to join the bank.
“Society is facing several challenges. We will certainly face challenges in the coming three years. We must seize every financial support we can get,” Rusland told legislators.
Raghoebarsing said that, like other international institutions, Afreximbank also uses standard uniform regulations and that it is virtually impossible for countries that join to make reservations. He said these international rules concern investments and good governance.
Among the critical comments raised during the debate in the National Assembly were the Central Bank of Suriname’s position as a controlling institution for financial institutions operating in Suriname and the tax and customs exemption benefits that Afreximbank enforces in the agreement.
However, in a move to appease legislators, the government made some amendments, so the law now states that if Afreximbank decides to open a branch in Suriname, it would have to comply with Surinamese laws and regulations.
In addition, some amendments will also apply to the business activities and functioning of persons who perform work for the bank. The immunity then applies strictly to the bank’s business affairs and does not apply to personnel who are hired in Suriname.
However, Afreximbank retains the right to exempt goods belonging to it or destined for the bank from customs duties and import restrictions. The bank also retains the right to move funds freely between member states and other countries without currency restrictions. Afreximbank may also operate in foreign currencies without restrictions, allowing smooth international transactions.
Furthermore, Afreximbank’s assets are exempt from legal processes such as seizure and confiscation unless the bank expressly waives this immunity. Employees of Afreximbank are only exempt from tax when it concerns work they perform for the bank.
Leader of the main opposition National Democratic Party (NDP) Rabin Parmessar said among the reasons for voting in support of the legislation are that it is in the interest of Suriname, where it is difficult to mobilize financial resources, and that it is best to agree to the accession.
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