IMF Executive Board Completes First Review of Extended Credit Facility Arrangement for Suriname
IMF Executive Board Completes First Review of Extended Credit Facility Arrangement for Suriname
March 23, 2022
- The IMF Executive Board has completed the first review of the expanded arrangement under the Extended Financing Facility (EFF) for Suriname, allowing an immediate disbursement equivalent to SDR 39.4 million (about US$55 million) .
- Suriname’s economic recovery program remains on track. Economic stabilization is underway and 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 increasing social spending, advancing debt restructuring discussions with creditors, further strengthening the new monetary policy framework, addressing banking sector vulnerabilities and continue to address money laundering, corruption and other governance shortcomings.
washington d.c.
:
The Executive Board of the International Monetary Fund (IMF) has completed the first review of the expanded arrangement under the Extended Financing Facility (EFF) for Suriname. The Board decision authorizes an immediate disbursement equivalent to SDR 39.4 million (about US$55 million).
Suriname’s 36-month CEP arrangement was approved by the Executive Board on December 22, 2021 (see Press Release No. 21/400), for an amount equivalent to SDR 472.8 million (366.8% of the share). The program aims to support the Suriname authorities’ domestic stimulus plan to restore fiscal sustainability through discretionary fiscal consolidation of 10% of GDP over 2021-24, protect the vulnerable by expanding safety net programs social security, reduce public debt to sustainable levels, improve the monetary and exchange rate policy framework, stabilize the financial system and strengthen institutional capacity to fight corruption and money laundering and improve governance.
Following the Board discussion on Suriname, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:
“The authorities’ stimulus program is on track despite difficult social and economic conditions. The economy is showing signs of an incipient recovery, thanks to comprehensive reforms aimed at addressing systemic fiscal and external imbalances.
“The authorities remain committed to fiscal consolidation while further strengthening the social safety net. The 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 public bilateral creditors. The envisaged debt relief, together with fiscal consolidation, is important for Suriname to restore debt sustainability.
“The Central Bank of Suriname is committed to achieving a downward inflation path and maintaining a market-determined exchange rate. Combined with the program’s catalytic effect on external financing, this will help address external imbalances and build foreign exchange reserves. Proactive measures 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 steps to strengthen central bank governance and anti-corruption and AML/CFT mechanisms. Technical assistance provided by the IMF and other development partners plays a critical role in building institutional capacity.
“The IMF-supported program continues to face considerable risks, both internal and external. Strong ownership and resolute implementation of the economic program, as well as continued support from the international community, will be essential to its success.
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Suriname: Main economic and social indicators |
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Is. |
Project. |
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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 |
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|
Broad Money |
65.0 |
45.3 |
37.0 |
|
Credit to the private sector |
27.1 |
18.5 |
26.9 |
|
(As a percentage of GDP, unless otherwise indicated) |
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|
central government |
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|
Revenues and grants |
18.4 |
27.1 |
27.3 |
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Of which |
6.5 |
13.1 |
13.3 |
|
Total of expenses |
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 |
|
National |
53.4 |
43.2 |
42.5 |
|
External |
94.3 |
82.1 |
89.7 |
|
Outdoor 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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Memo items |
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Gross international reserves (millions of US dollars) |
585 |
992 |
1,260 |
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In months of imports |
3.6 |
6.2 |
6.8 |
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Gross usable international reserves (US$ million) 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 PBOC swaps and foreign exchange reserve requirements of ring-fenced banks. |
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IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Randa Elnagar
Call: +1 202 623-7100E-mail: [email protected]
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