IMF Executive Board Approves US$ 688 million Extended Fund Facility for Suriname

IMF Executive Board Approves US$ 688 million Extended Fund Facility for Suriname

23-12-2021

The Executive Board of the International Monetary Fund (IMF) approved today the 36-month arrangement under the Extended Fund Facility (EFF) for Suriname in an amount equivalent to SDR 472.8 million (about US$688 million or 366.8 percent of quota) to support the authorities’ economic reform program. 

 

The Executive Board’s approval allows for an immediate disbursement of SDR 39.4 million (or about US$ 56.4 million). The remaining amount will be phased over the duration of the program.

 

This long-awaited decision by the IMF’s Executive Board represents a milestone in the implementation of Suriname’s reform program, aimed to put our country's economy on a path of sustainable and balanced growth. It enshrines the continuous efforts made over the past several months by the population and the Government.

 

The IMF financial arrangement will support Suriname’s homegrown economic plan: fiscal consolidation will help to reduce public debt and build resilience while social spending will be expanded and the most vulnerable supported. These reforms will be supported by technical assistance from development partners including the IMF, the Inter-American Development Bank, and the World Bank Group.

 

This arrangement will also pave the way for an orderly sovereign debt restructuring to place Suriname’s public debt on a sustainable trajectory. 

 

Following the Executive Board discussion, Minister of Finance Armand Achaibersing, said: 

 

“I am very pleased that the IMF Executive Board was finally able to approve their financial support to Suriname. It took several months of unexpected relentless diplomatic efforts on top of the implementation of a challenging reform agenda, but we got there eventually. This is a very important milestone for President Santokhi’s administration, which inherited many economic challenges on the back of large fiscal and financial needs and weak and unbalanced growth. It shows that the Authorities are dedicated, with a plan and a method, to tackle long-standing structural weaknesses to put Suriname’s house in order. We are not just fixing the roof, given what we inherited we are building new foundations. The sacrifices asked from the population to put Suriname on a prosperous path will bear fruits in the next months.”

 

The Government of Suriname reiterates its appreciation to its international partners for their support.