Suriname Government's Economic Strategy

PARAMARIBO, Suriname (Reuters) – The government of Suriname announced on Tuesday that it will postpone its decision on applying for another International Monetary Fund (IMF) program until after the May 2024 general elections. This decision comes as the country considers how to effectively utilize its new oil revenues.

The small South American nation is optimistic about a $10.5 billion oil and gas project led by France's TotalEnergies and U.S. APA Corp, which is expected to aid its economy still recovering from significant debt.

Finance Minister Stanley Raghoebarsing emphasized the need for caution, stating that the government will not pursue another IMF program immediately after the current $688 million program ends in March 2024. Last week, Suriname approved a World Bank agreement that releases $22 million for improving living conditions.

Furthermore, Raghoebarsing dismissed the idea of securing loans against future oil revenues, insisting, "In no way do we want to sell the oil we have yet to produce and use it as collateral for easy money, which would burden the next generation." He also ruled out using debt-for-nature swaps to alleviate existing debt.

The TotalEnergies-APA project is poised to start production in 2028, with Staatsolie, the state oil company, forecasting potential revenues of $26 billion. This would significantly benefit Suriname’s economy and its population of 650,000 through government royalties.

Additionally, the government is considering amendments to oil revenue laws to ensure a fair distribution between current and future generations.