Happy Monday!

This week we cover the finalisation of the 6th review and an extension of loans to Suriname. We also cover President Santokhi returning from the Trade and Investment Forum in the Bahamas.

IMF completed the sixth review in Suriname to give US$61.5 in aid.

• The International Monetary Fund (IMF) Executive Board has completed the sixth review under the Extended Fund Facility (EFF) for Suriname which amounts to US$61.5 million bringing the total disbursements under the program to approximately US$ 382.6 million.

• Suriname is implementing an ambitious economic reform agenda to restore fiscal and debt sustainability through fiscal consolidation and debt restructuring, protect the vulnerable by expanding social protection, improve the monetary and exchange rate policy framework, address banking sector vulnerabilities, and promote anti-corruption measures.

• Kenji Okamura, Deputy Managing Director, and Acting Chair, noted that the authorities' reforms under the EFF-supported program are increasingly reflected in macroeconomic stability and improved investor perception.

• According to the IMF, Suriname’s economy is growing, inflation is decreasing and donor support is increasing.

• Okamura praised the authorities' determination to implement politically challenging reforms such as eliminating fuel subsidies completely and gradually eliminating electricity, water, and gas subsidies, and broadening the VAT (value-added tax) base.

• Furthermore, the government has also controlled wage costs, noting these as necessary despite their political cost.

• Significant progress has been made in debt restructuring, with bilateral agreements reached with all official creditors and most commercial creditors, while overdue domestic debts have been cleared.

President Santokhi returns from attending the third AfriCaribbean Trade and Investment Forum in the Bahamas.

• President Chan Santokhi returned to Suriname after attending the 31st Afreximbank Annual Meetings and the third AfriCaribbean Trade and Investment Forum (ACTIF) in Nassau, Bahamas.

• During the forum, he emphasized the need for stronger cooperation between Africa and the Caribbean. He highlighted the potential for collaboration in finance, production, labor, and connectivity, advocating for a long-term vision and seizing missed opportunities.

• Santokhi held extensive talks with Benedict Oramah, president of Afrexim Bank, discussing potential cooperation in Suriname's oil and gas, tourism, real estate, and agricultural sectors, as well as debt refinancing and investment modalities.

• Plans are underway for a trade and investment mission led by Oramah to identify potential projects and strengthen economic ties, with technical discussions on refinancing existing debts to create more fiscal space in Suriname's budget.

• The president also stressed the importance of cultural exchanges, educational collaborations, and building mutual understanding and trust between Africa and the Caribbean.

• He noted that this cooperation could improve quality of life through economic growth and better access to goods and services, potentially creating a market of over two billion people, leading to shared prosperity and development.

Civil servants are to receive a purchasing power supplement of SRD 3,500 (around US$ 113) per month until December this year.

• The announcement came from Minister Bronto Somohardjo of Internal Affairs after an agreement had been reached with the labor unions. However, Michael Miskin, Chairman of the Central Organization of Civil Servants (CLO), noted that while an agreement exists, negotiations are still ongoing.

• Miskin emphasized the importance of finalizing administrative matters, particularly because government pensions, which will be paid in mid-July, include 70% of the purchasing power supplement.

• Unions are demanding a 35% wage increase and the incorporation of the SRD 3,500 per month supplement into the salary. Miskin has explained that the 35% figure is based on last year's inflation.

• The government offered a 7% increase in July and 8% in January 2025, which the unions rejected, asking for a better offer.

• The Government Negotiation Body, led by Maurits Hassankhan, informed the unions that discussions are ongoing with ministers. Negotiations will continue as an agreement has to be reached in July for implementation.