Happy Monday!

This week we cover Surinamese continues to recover from its economic crisis as it receives IMF funding and continuing decrease in inflation rates.

Suriname receives approval for their fourth tranche of IMF funding which amounts to USD$62 million.

• The International Monetary Fund (IMF) has approved Suriname's fourth review, thus providing $62 million in funding for the country. $25 million of which is for budgetary support.

• The approval reflects Suriname's commitment to budget discipline and macroeconomic stability which has so far resulted in economic growth, declining inflation, and restoring investor confidence.

• While Suriname is on the correct path, some short-term priorities include maintaining budget discipline, protecting vulnerable citizens and advancing structural reforms.

• Some immediate goals for the country are reducing public debt, reforming the public payroll, and phasing out various subsidies. Suriname has also made significant progress in debt restructuring.

• The focus is now on continuing reforms to strengthen institutions, governance, and data quality, with support from the IMF and other partners.

Inflation in Suriname continues to decrease year on year.

• In February of this year, Suriname experienced a 25.4% inflation compared to the same month last year, with a 0.4% inflation increase from January.

• In December 2023, Suriname saw an inflation rate of 32.6% while inflation has decreased from around 60% in 2020 and 2021 to 54.6% in 2022 and by more than 18 percentage points in the last year.

In further economic news, Suriname has also strengthened a relationship with the World Bank.

• Carlos Felipe Jaramillo, the Regional Vice President of the World Bank visited Suriname’s President Chan Santokhi, to highlight the relationship strengthening between Suriname and the World Bank.

• The World Bank commends Suriname's efforts in recovering economically, in particularly from the financial crisis.

• Due to good recovery efforts, Suriname is set to gain access to funds from the International Development Association (IDA), with an expected initial soft loan of US$ 22.5 million.

• The World Bank will continue to support the country’s economic stability, particularly focusing on environmental aspects.

Suriname and Guyana continue discussions to build a bridge connecting the two South American countries.

• The Presidents of Suriname and Guyana, along with their respective ministers, met to discuss the construction of a bridge over the Corantijn/Corentyne River.

• They emphasized the bridge's importance for regional connectivity and economic growth between both countries and aim to optimise affordability for the project.

• The countries are now focusing on setting clear timelines for financing, operational modes, and negotiating contract prices.

• Additionally, experts from both countries will work on establishing a political and legal framework for the project.

• The presidents agreed to convene a Strategic Dialogue and Cooperation Platform to further discuss other relevant areas of cooperation between the two nations.

Continuing consequences around the removal of energy subsidies.

• Starting from April 1, vulnerable consumers in Suriname need to submit an application to qualify for a 50% discount on energy rates that were previously automatically applied for vulnerable consumers.

• The application must be made to the Energy Authority of Suriname (EAS). Non-profit consumers active in sectors like sports, religion, education, healthcare, and other industries that have insufficient financial capacity are eligible for this discount.

• Applications require a KKF (Chamber of Commerce and Factories) brief and a completed financial overview of the entity. The EAS will then screen and forward applications to the Ministry of Finance and Planning for final approval.

• Failure to apply formally will result in the discount being discontinued.

• The tariff adjustments aim to ensure a sustainable energy sector, addressing current challenges and promoting economic growth.

• However, the government also seeks to create a social safety net through a broad social program is part of this transition.