Suriname to get $40m IDB support for fiscal reform

4 Jul 17

Suriname is to receive a $40m investment loan to it increase tax revenue and improve its public spending.

The South American country, the smallest on the continent, is trying to lower its budget deficit from 5.7% in 2016 to 2.5% in 2018. Suriname’s tax base has been hit by the fall in commodity prices and a halt in aluminium oxide production, the country’s chief export.

The Inter-American Development Bank (IDB) loan will support Suriname’s efforts towards budget balance and fiscal sustainability by strengthening the capacity of the Ministry of Finance to collect taxes efficiently. It will also improve the budget planning and monitoring process and the quality of public investments.

Gerardo Reyes-Tagle, IDB project team leader, said: “Since 2011, the IDB has been working very closely with Suriname to implement reforms to develop the tools and framework critical to updating the public expenditure and revenue systems, which provide the basis for this new investment operation.”

Cesar Falconi, the IDB representative in Suriname, added: “This investment loan will provide a critical institutional capacity platform to improve the effectiveness of the Ministry of Finance on its main activities and contribute the economic growth of Suriname.”

The investment loan is for a 25-year term, with a 5.5-year grace period and a LIBOR-based interest rate.

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