The SLM continues to go through growing pains

Happy Monday!

After a few weeks out due to personal reasons, we are back this week. This week’s newsletter explores the continued upheaval at the SLM; two institutions in crisis in Credit Suisse and Suriname’s economy finding each other (love at first sight?), and a possible reset of the healthcare sector.

Upheaval continues at the SLM

In ongoing problems at the SLM, the company has until October 15 to enact measures otherwise it will lose its `operations' license. The company must continue to fly otherwise it will also lose its places at Schiphol, the Netherlands, and Miami, USA. As such, the government is trying to get planes as soon as possible; one for the route through the Mid-Atlantic and one for the regional route.

The recovery plan to save the SLM continues according to the president with a different approach and priority. The AOC (Air Operator Certificate) also known as the Air Operator Permit is needed for flying commercially and ensures the safety of the airlines’ staff and the public. As American Airlines announced it will not fly to Suriname in December, Santokhi believes that an opportunity exists there for SLM to succeed in the market and that this can help save the airline.

Two Institutions in crisis find each other

Suriname and its President Santokhi met a delegation from Credit Suisse. A meeting of two institutions currently engulfed in crises. The president informed the Credit Suisse delegation of the implementation of the IMF programme with regard to economic recovery in Suriname.

In the meeting, Santokhi questioned the delegation regarding debt refinancing options that could fit within the context of the IMF programme. He also invited support from any investment bank that wants to support Suriname during this time. Furthermore, also discussed were the recent discoveries of offshore oil and gas in Suriname and the relationship between Credit Suisse and the national oil company, Staatsolie. Santokhi is interested in its further development while others fear for the future of Credit Suisse.

Is the Healthcare sector bound for a reset?

President Santokhi recently discussed the restructuring of the health sector in Suriname. Central to this was the use of the residual treaty resources from the Netherlands for the sustainable rebuild of health care. As such a group from the Dutch Ministry of Health, Welfare and Sport along with Surinamese Health Minister and the President met and analysed possibilities. Health Minister Amar Ramadhin said that insight was given to the president on how the remaining treaty funds can be used to rebuild the sector with a focus on the most critical matters while eliminating inefficient solutions. In lieu of cooperation with Suriname, there is a plan to phase out the treaty funds and make the Ministry of Health independent from these funds. There are plans being put in place for the deployment of resources and how the sector will be financed on a project-to-project basis. As the country seeks a way out of its prolonged crisis, it continues to look abroad for cooperation in various sectors.