IMF Executive Board Completes First Review of the Extended Fund Facility Arrangement for Suriname
March 23, 2022
- The IMF Executive Board completed the first review of the extended arrangement under the Extended Fund Facility (EFF) for Suriname, allowing for an immediate disbursement equivalent to SDR 39.4 million (about US$55 million).
- Suriname’s homegrown economic recovery program remains on track. Economic stabilization is underway and both fiscal and external balances are improving.
- The authorities have continued to advance their reform agenda in key areas. These include building on fiscal consolidation efforts while enhancing social spending, advancing debt restructuring discussions with creditors, further strengthening the new monetary policy framework, addressing banking sector vulnerabilities, and continuing to tackle money laundering, corruption and other governance shortcomings.
Washington, DC : The Executive Board of the International Monetary Fund (IMF) completed the first review of the extended arrangement under the Extended Fund Facility (EFF) for Suriname. The Board’s decision allows for an immediate disbursement equivalent to SDR 39.4 million (about US$55 million).
Suriname’s 36-month EFF arrangement was approved by the Executive Board on December 22, 2021 (see Press Release No. 21/400 ), in an amount equivalent to SDR472.8 million (366.8 percent of quota). The program aims to support Suriname’s authorities’ homegrown recovery plan to restore fiscal sustainability through a discretionary fiscal consolidation of 10 percent of GDP during 2021-24, protect the vulnerable by expanding social safety net programs, bring public debt down to sustainable levels, upgrade the monetary and exchange rate policy framework, stabilize the financial system, and strengthen institutional capacity to tackle corruption and money laundering and improve governance.
Following the Executive Board discussion on Suriname, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:
“The authorities’ recovery program is on track despite difficult social and economic conditions. The economy is showing signs of a nascent recovery, on the back of comprehensive reforms to address systemic fiscal and external imbalances.
“The authorities remain committed to fiscal consolidation while further strengthening the social safety net. Planned revenue and expenditure measures, including on social spending programs, will be crucial to strengthen public finances while protecting the most vulnerable. The authorities are also advancing debt restructuring negotiations with private and official bilateral creditors. The envisaged debt relief, together with fiscal consolidation, are important for Suriname to restore debt sustainability.
“The Central Bank of Suriname is committed to achieving a downward path for inflation and maintaining a market-determined exchange rate. Together with the program’s catalytic effect on external financing, this will help address external imbalances and build up foreign reserves. Proactive steps have also been taken to address vulnerabilities in the banking system.
“Structural reforms to strengthen capacity, governance, and data quality are key priorities. The authorities are taking important measures to strengthen central bank governance and the anti-corruption and AML/CFT frameworks. Technical assistance provided by the IMF and other development partners plays a critical role in developing institutional capacity.
“The IMF-supported program continues to face considerable risks, both domestic and external. Strong ownership and steadfast implement of the economic program, together with continued support from the international community, will be essential for its success.”
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Suriname: Selected Economic and Social Indicators |
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Est. |
Proj. |
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|
|
2020 |
2021 |
2022 |
|
(Annual percentage change, unless otherwise indicated) |
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|
Real sector |
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|
Real GDP Growth |
-15.9 |
-3.5 |
1.8 |
|
Nominal GDP Growth |
21.8 |
46.6 |
38.4 |
|
Consumer prices (end of period) |
60.7 |
60.6 |
25.8 |
|
Consumer prices (period average) |
34.9 |
59.1 |
38.9 |
|
Money and credit |
|||
|
Broad money |
65.0 |
45.3 |
37.0 |
|
Private sector credit |
27.1 |
18.5 |
26.9 |
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(In percent of GDP, unless otherwise indicated) |
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|
Central government |
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|
Revenue and grants |
18.4 |
27.1 |
27.3 |
|
Of which : Mineral revenue |
6.5 |
13.1 |
13.3 |
|
Total expenditure |
31.8 |
34.4 |
31.0 |
|
Overall Balance (Net lending/borrowing) |
-13.4 |
-7.3 |
-3.7 |
|
Primary Balance |
-9.7 |
-1.3 |
1.7 |
|
Central government debt |
147.7 |
125.3 |
132.2 |
|
Domestic |
53.4 |
43.2 |
42.5 |
|
External |
94.3 |
82.1 |
89.7 |
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External sector |
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|
Current account balance |
9.1 |
5.2 |
-0.9 |
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Capital and financial account |
6.6 |
0.3 |
8.2 |
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Memorandum Items |
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Gross international reserves (US$ millions) |
585 |
992 |
1,260 |
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In months of imports |
3.6 |
6.2 |
6.8 |
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Usable gross international reserves (US$ millions) 1/ |
129 |
512 |
934 |
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In months of imports |
0.8 |
3.2 |
5.0 |
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Official exchange rate (SRD per US$, (Average) |
9.3 |
18.4 |
… |
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Sources: Suriname authorities and IMF staff estimates and projections. |
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1/ Excluding the PBOC swap and ring-fenced banks' FX required reserves. |
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IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Randa Elnagar
Phone: +1 202 623-7100Email: MEDIA@IMF.org