Happy Monday!

This week we cover responses to the electricity hikes by the government and an Interpol Red Notice is placed for former President Desi Bouterse.

A massive increase in electricity has led to insecurity amongst Surinamese citizens and has led to responses from unions and increased subsidies from the government.

• The government of Suriname has announced a subsidy that will support households that consume up to 900 kWh of electricity per month which provides up to SRD 400 per month until June.

• This subsidy will affect around 95% of consumers, while small and medium-sized enterprises (SMEs) are facing losses due to the increases in electricity costs and can access tax provisions, while social organisations can also seek assistance through the Suriname Energy Authority.

• The decisions that have been made come from discussions of implementing reforms that benefit the country. The government will also introduce measures that mitigate the impact of electricity tariff adjustments and monitor essential goods prices to control inflation.

• Sustainable energy solutions will be prioritised with collaborations between state-owned enterprises and the private sector.

• The country implements sustainable energy solutions that emphasize safeguarding societal well-being during the transition, with a comprehensive media campaign planned to inform citizens and encourage energy efficiency and renewable energy adoption.

• The government pledges close monitoring of implementation and readiness to make adjustments if necessary to ensure inclusivity during this transitional period.

A response from the trade union movement and particularly union C-47.

• The labour movement, C-47 will respond to the recent electricity price increases and the removal of subsidies in the country. They plan to hold information sessions with union members to explain the issues and garner support.

• C-47 believes the increases could have been implemented differently while also blaming the government for not addressing underlying cost issues.

• They aim to pressure the government to reverse the increases and ensure fair implementation. Collaboration with other unions is planned, and action will be decided upon collectively. The focus of the unions is to advocate for fair pricing and oppose unjustified cost increases.

A red notice for Suriname’s former president Desi Bouterse.

• Suriname’s former president Desi Bouterse has been on the run since he was convicted by the Constitutional Court for his role in the infamous December murders of December 8th, 1982 at Fort Zeelandia.

• Bouterse was expected to show up for his sentence at the jail on January 12th, 2024 but did not show.

• Since then the country’s former president has been on the run. Now, after more than 2 months on the run, Bouterse has been placed on Interpol’s red notice.

• Rumours are that Bouterse has disappeared to the interior of Suriname, however, as he is also sick, people are wondering how he continues to get treatment for his health.

• Both Bouterse and his ex-bodyguard Iwan Dijksteel have been placed on Interpol’s red notice which will now make the search for the convicts international.

A rebound of economic activity as well as large debts on state-owned enterprises.

• The Suriname Economic Oversight Board (SEOB) has reported in its 9th bulletin that economic activity has been rebounding since August 2023.

• Growth, which is estimated at 0.5% in October 2023 by the Central Bank of Suriname (CBvS), is expected to accelerate to 3% in 2024, driven by hospitality-related sectors.

• While timber production and air transport have contributed positively to growth, there were declines in the trade sector and gold production.

• Despite declining production volumes, mining exports rose significantly in the third quarter of 2023. Gold prices reached record highs in December 2023, while oil prices declined.

• The SEOB has emphasized the necessity for policymakers to maintain a healthy economic climate to boost investor confidence amidst the gradual economic recovery.

• The Association of Economists in Suriname, the VES, has announced state debt at the end of 2022 stating that 11 state-owned enterprises owe SRD 53,7 billion, with around US$ 126 million overdue. Surinam Airways, the country’s national airline is around USD 80 million in debt.

• These state-owned enterprises have to report their debts to the government now to minimise fiscal risks and address issues promptly.

• Long-term debts of 11 long-term debts of 11 major state-owned enterprises, totaling US$ 1.7 billion (SRD 53.7 billion), have been documented for 2021 and 2022. Eight percent of these debts are owed to the State, primarily by entities such as EBS, SLM, FAI, and SWM.

• The government's plan since the Santokhi government's introduction in 2020 has yet to be realised. The government agreement of 2020-2025 outlines plans for state-owned enterprises, and the outcome after approximately 3.5 years of the Santokhi government's term is yet to be fully realized.