The International Monetary Fund (IMF) has approved the ninth and final review under the Extended Fund Facility (EFF) arrangement for Suriname, unlocking US$62 million in new funds. This brings the total financial support provided under the program to US$572 million.
The IMF executive board also granted Suriname a waiver for non-observance of the end-December 2024 performance criteria on the central government primary balance, citing corrective actions already undertaken by the authorities.
Suriname’s EFF arrangement was approved in 2021 as part of a broad economic reform strategy aimed at restoring macroeconomic stability and debt sustainability while fostering long-term, inclusive growth. The program prioritized fiscal and debt sustainability, protection for vulnerable populations, monetary and banking sector reforms, and improvements in governance and anti-corruption efforts.
“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,” said Kenji Okamura, IMF Deputy Managing Director and Acting Chair.
Okamura emphasized the importance of establishing strong institutional frameworks, particularly in light of Suriname’s recent Final Investment Decision regarding its oil resources. He stressed that fiscal rules, transparency measures, and accountability safeguards would help the country manage its resource wealth responsibly and ensure long-term economic stability.
“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,” Okamura stated.
He also underscored the need for full implementation of the newly finalized social assistance reform plan to improve efficiency and effectiveness. Additionally, strengthening financial management controls within the state-owned electricity sector—including the regular publication of audited financial statements—would enhance accountability and oversight.
According to the IMF, Suriname’s debt restructuring process is nearing completion, with agreements reached with all official creditors and all but one commercial creditor. The country has also cleared its domestic debt arrears, and the IMF urged continued efforts to improve budgetary controls and cash management to prevent further arrears.
Okamura noted that a restrictive monetary policy has supported disinflation and highlighted the recent implementation of a central bank recapitalization plan as a crucial step in ensuring financial stability and autonomy. He also reaffirmed the importance of a flexible, market-determined exchange rate in supporting reserve accumulation.
Moving forward, Okamura encouraged Suriname to persist with its ambitious structural reform agenda, which includes strengthening institutions, enhancing governance, improving data quality, and addressing gender gaps. He assured that these efforts would continue to receive support from the IMF and other development partners.
