An International Monetary Fund (IMF) team, led by Ms. Anastasia Guscina, held discussions with Surinamese authorities from February 5-14 regarding the final review of the Extended Fund Facility (EFF) arrangement approved in December 2021. This review marks the ninth and concluding evaluation of Suriname's economic reform program.
Ms. Guscina announced that a staff-level agreement was reached with Suriname on this final review. "All quantitative targets for the final review were met except the primary fiscal balance target," she stated. The authorities are implementing policy measures to ensure that the 2.7 percent GDP primary surplus target for 2025 is attainable.
The IMF noted that upon completion of this review, Suriname would access SDR 46.8 million (approximately USD 61.4 million), increasing total disbursements under the program to SDR 430.7 million (about USD 565.4 million).
"The broad objectives of the program have been achieved," Ms. Guscina remarked, highlighting economic growth projections of three percent for this year and a steady decline in inflation rates.
Suriname faces several challenges including capacity constraints and socio-political difficulties, but its medium-term outlook has improved with plans for offshore oil production by 2028.
Despite missing the end-December primary balance target due to non-tax revenue shortfalls and overspending on subsidies, corrective fiscal measures are underway. Recent legislative changes aim to strengthen fiscal management as future oil revenues loom.
"Protecting the poor and vulnerable has been high on the agenda," said Ms. Guscina, noting an increase in social protection spending throughout the program's duration.
Debt restructuring efforts have progressed significantly with agreements facilitating negotiations with creditors, boosting investor confidence as domestic debt arrears have been addressed.
The Central Bank van Suriname met all monetary targets for this final review period while continuing efforts to stabilize inflation and improve foreign exchange market functionality.
Vulnerabilities within Suriname's banking system are being managed through recapitalization plans and enhanced monitoring efforts by CBvS.
Lastly, Ms. Guscina emphasized ongoing structural reforms aimed at strengthening governance frameworks: "With support from IMF...amending anti-corruption legal framework...is very important."
The mission expressed gratitude towards Surinamese officials for their cooperation during discussions involving various government figures and stakeholders from different sectors.