Press Release No. 25/74

IMF Executive Board Completes Final Review Under the Extended Fund Facility Arrangement with Suriname

March 24, 2025

• The Executive Board of the International Monetary Fund completed the ninth and final review under the Extended Fund Facility (EFF) arrangement for Suriname. The approval allows for an immediate purchase equivalent to SDR 46.8 million (about USD 62 million) of which SDR 33.6 million or about USD 44.7 million would be for budget support.
• The objectives of the program have been broadly achieved. The economy is growing, inflation is receding, public debt is declining, the autonomy and governance of the central bank have been strengthened, and investor confidence is returning. The main near-term policy priority is to maintain fiscal discipline in the run-up to the elections while protecting the vulnerable.
• Building on the progress made under the program, the authorities should strengthen the fiscal framework, including through the operationalization of the recently enacted fiscal rules supported by the appropriate institutional mechanisms. The implementation of these critical reforms will enable Suriname to efficiently and transparently manage its newly found oil resources.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) approved the ninth and final review under the Extended Fund Facility (EFF) arrangement with Suriname. The completion of the review allows the authorities to draw the equivalent of SDR 46.8 million (about USD 62 million), bringing total program disbursement to SDR 430.7 million (about USD 572 million). In completing the review, the Executive Board approved the authorities’ 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.

Suriname’s EFF arrangement was approved by the Executive Board on December 22, 2021 (see Press Release No. 21/400), in an amount equivalent to SDR 472.8 million (366.8 percent of quota). Under the EFF, Suriname pursed an ambitious economic reform agenda with the objective of restoring macroeconomic stability and debt sustainability, while laying the foundations for strong and more inclusive growth. The program 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.

Following the Executive Board discussion on Suriname, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“The authorities’ reforms under the EFF-supported program—the first ever to be completed by Suriname—are increasingly bolstering macroeconomic stability and investor confidence. The economy is growing, inflation is approaching single digits, international bond spreads are at record low levels, and donor support is increasing.

“In view of the Final Investment Decision for the country’s oil resources, it is critical to put in place robust institutional frameworks, including fiscal rules and improved transparency and accountability safeguards. Such institutional improvements will help Suriname avoid procyclical fiscal policy, prioritize urgent development needs, ensure intergenerational equity, and transform exhaustible resource wealth into financial assets.

“The near-term priority is to maintain the path for debt reduction while protecting the vulnerable from the burden of the adjustment. Gradually phasing out electricity subsidies and strengthening tax administration will help create fiscal space for higher, targeted social assistance and infrastructure spending. Fully implementing the recently finalized social assistance reform plan will make social programs more efficient and effective. Strengthening financial management controls in the state-owned electricity company, including regularly publishing its audited financial statements, will help promote accountability and oversight.

“The debt restructuring process is nearing completion. Bilateral agreements with all official creditors and all but one commercial creditor have been achieved. Domestic debt arrears have been cleared. Improving commitment controls in the budget and addressing weaknesses in cash management will restrain public spending and prevent accumulation of supplier arrears. 

“A restrictive monetary policy is supporting disinflation. Recent implementation of the agreed central bank recapitalization plan is a critical step in ensuring a strong central bank balance sheet with clear operational and financial autonomy. The authorities’ demonstrated commitment to a flexible, market-determined exchange rate is supporting international reserve accumulation. Timely implementation of recapitalization plans for undercapitalized commercial banks and improving the monitoring of non-bank financial institutions will help bolster financial sector resilience.

“The authorities should persevere with their ambitious structural reform agenda to strengthen institutions, address governance weaknesses, build climate resilience, improve data quality and address gender gaps. This important work will continue to be supported by capacity development from the Fund and other development partners.”