Happy Monday!

This week we celebrate Suriname’s 49th year of Independence from the Netherlands. Suriname’s President has pledged to give US$750 to each citizen, and Suriname agreed on a deal with China for debt restructuring.

Suriname’s 49th year of Independence was celebrated with large festivities and pronouncements of success for the future.

With traditional music, traditional Surinamese dresses, a parachute show, helicopters, and a navy ship on the Surinamese River, Suriname celebrated its 49th Independence Day. President Santokhi also announced that each citizen would receive US$750 royalty from the oil revenue with an annual interest of 7%. Furthermore, a deal was signed between the Surinamese government and Chinese company Chinalco to start Bauxite mining in Western Suriname.

Along with a traditional parade through downtown Paramaribo, Independence Day was celebrated with demonstrations by the Navy, Air Force, Coast Guard, and police on the Surinamese River. While the Navy also showed its newest vessel the RSS Barracuda. The country’s president proclaimed a prosperous future for Suriname in its 50th upcoming year of independence.

Suriname will dispense US$750 from Block 58 to dispense to its citizens.

The Royalties for Everyone (RVI) program will distribute payouts to Surinamese citizens once oil royalties from Block 58 are received. Payments, valued in US dollars but disbursed in Surinamese dollars, may be expedited for seniors and persons with disabilities.

The program aims to: give citizens a share in oil and gas sector development, like Alaska's model which rewards its citizens for its resource shares. Reward the Surinamese population for their resilience during economic stabilization. And Encourage formal economic participation, like tax registration and bank account ownership.

The RVI will launch in 2025, using future royalty revenues without incurring state debt or mortgaging oil resources. It ensures part of the proceeds directly benefit the population. This is in line with Article 41 of the Surinamese Constitution which states that "natural resources are the property of the nation and shall be utilized to promote economic, social, and cultural development." 

Furthermore, Article 6(d) of the Constitution specifies that "the State strives for a fair distribution of national income to ensure an equitable distribution of welfare and prosperity among all sections of the population."

The government then aims to stand by this article of the constitution and improve the economic prosperity of the population.

Suriname’s inflation is around 10.1%.

Prices this year have risen 10.1% in October compared to October 2023, and rose 0.6% compared to September 2024. Slowly the country seems to be turning around its economic woes.

Suriname and China have reached an agreement regarding debt restructuring for Suriname’s debt payments.

Suriname and China have signed an agreement completing the first phase of debt restructuring, addressing over USD 500 million in loans. This marks a key step toward resolving Suriname’s arrears and restructuring payments due between 2022 and 2024.

The process took over three years and involved various loan types, including concessional loans with low interest rates. A second phase will involve further negotiations to finalize the debt restructuring.

The agreement enables Suriname to potentially access new financing from China, which was previously unavailable during the restructuring process. Suriname’s restructuring efforts since 2020 have already resolved debts with commercial creditors, including Oppenheimer bondholders and the Paris Club. Completing this process with China, its largest bilateral creditor, paves the way for renewed financial opportunities and stability.

Suriname has also reached agreements with the IMF on its 8th review of the recovery program.

Suriname has reached a staff-level agreement with the IMF on the eighth review of its economic recovery program. Upon approval by the IMF Executive Board, Suriname will gain access to USD 61.3 million, bringing total disbursements under the program to USD 503.8 million.

The IMF commended Suriname's solid program performance, reflecting a strong commitment to macroeconomic stability. Key short-term goals include maintaining fiscal discipline ahead of elections while protecting vulnerable populations. In the medium term, the focus will be on strengthening fiscal policies, managing oil revenues transparently, addressing governance issues, and promoting diversified GDP growth.

Economic growth for 2023 is projected at 3%, with declining inflation, increasing donor support, and growing investor confidence. Although Suriname faces challenges due to limited capacity and socio-political complexities, its medium-term prospects are bolstered by the decision to begin offshore oil production by 2028.