Suriname-Implementation of the second phase of the debt treatment by the Paris Club

THE PARIS CLUB IMPLEMENTS THE SECOND PHASE OF

THE DEBT TREATMENT TO THE REPUBLIC OF SURINAME

Paris Club creditors agreed on 8 October 2024 with the Republic of Suriname on the conditions of the second phase of the restructuring of its external public debt, in the form of an Amendment to the Agreed Minutes on the Consolidation of the Debt of the Republic of Suriname of 22 June 2022.

Based on the assessment that the Republic of Suriname has fulfilled all its commitments under the 2022 Minutes, notably the comparability of treatment, and has maintained sound macroeconomic policies consistent with long-term debt sustainability, Paris Club creditors decided to reschedule all remaining outstanding principal amounts falling due starting on 1 January 2025 (stock treatment). As the 2024 IMF assessment of the macroeconomic situation is consistent with the previous projections, the repayment schedule is now, as planned, 17 years (including a 4-year grace period) for ODA claims and 12 years (including a 5-year grace period) for NODA claims.

The Government of the Republic of Suriname and the Participating Creditor Countries also committed in the 2022 Minutes to review the latest developments of the macroeconomic situation of the Republic of Suriname, in particular the existence of the prospects for oil revenues to adjust the second phase of the treatment. Those terms will be adjusted to ensure comparability of treatment with regards to other external creditors once the Value Recovery Instrument of the Bondholders starts paying out.

The Republic of Suriname has committed to seek debt treatments at least as favourable from all other bilateral and external commercial creditors.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participated in the reorganization were representatives of the Governments of France, Israel, Italy and the Netherlands.

Observers at the meeting were representatives of the Governments of Denmark, Germany, Ireland, Japan, Spain, Switzerland, the United States of America, as well as of the International Monetary Fund (IMF) and the World Bank (WB).

3. The delegation of the Republic of Suriname was headed by H.E. Kermechend RAGHOEBARSING, Minister of Finance and Planning. The meeting was chaired by Mr. William ROOS, Co Chairman of the Paris Club, Assistant Secretary at the Directorate-General of the Treasury of the French Ministry of Economy, Finance and Industry.

Technical notes

1. The Republic of Suriname’s economic program is supported by an Extended Fund Facility (EFF) approved by the Executive Board of the International Monetary Fund (IMF) on 22 December 2021.

2. The total stock of the Republic of Suriname’s external debt was estimated as of 31 December 2023 to be US$ 2,694 million and the stock of debt owed to Paris Club creditors was estimated to be US$ 88 million (source: IMF).

Credit Photo: AdobeStock@Matyas Rehak