Suriname's President Establishes Economic Oversight Board to Help Monitor IMF Program

PARAMARIBO, Suriname – The Suriname private sector says it will act as external watchdogs for the implementation of the International Monetary Fund (IMF) program as well as the government’s economic recovery plan.

Finance Minister Stanley Raghoebarsing (center) and representatives of the private sector and the Central Bank during Thursday’s news conference (CMC Photo)The government of President Chandrikapersad Santokhi, the Surinamese Business Association (VSB) and the Surinamese Bankers Association (SBV) Thursday signed a letter of intent for the establishment of the Economic Oversight Board (SEOB).

The agreement was signed by Santokhi, Finance and Planning MInister, Stanley Raghoebarsing, the Governor of the Central Bank of Suriname (CBvS) Maurice Roeme and representatives of the SBV and the VSB.

According to the agreement, the SEOB will act as an independent monitoring and advisory body and will be staffed by up to 10 representatives from both the private and public sectors, participating on a volunteer basis.

Raghoebarsing in welcoming the establishment of the SEOB, said that not only state bodies such as the Planning Bureau and Statistics Office will oversee the program.

“This is highly appreciated by the government,” he said, adding this development is unique because the initiative came from the business community itself.

He said this also indicates that society wishes to be involved in the monitoring of the program and that there are calls for the representatives of the the Association of Economists in Suriname and the Council of Trade Union Federations in Suriname to be included.

Last month, the Washington-based financial institution, said that an IMF team and the Surinamese authorities reached a staff-level agreement on the second review of country’s economic reform program supported by the 36-month Extended Fund Facility (EFF) arrangement.

It said this agreement is subject to approval by the IMF’s Executive Board, contingent on the implementation by the authorities of prior actions and fulfillment of all relevant Fund policies and that upon completion of this review, Suriname will have access to an estimated US$ 53 million, bringing total program disbursements to date to US$159 million.

During a news conference, the representative of the banking sector, Eblein Frangie, noted that the business community wants to serve as a sounding board for the government in implementing economic recovery measures.

The business community says that while it believes that the IMF program is good, it needs to be vigorously implemented.

CBvS Director of Monetary Affairs, Harry Dorinie, said guidance from the business community is necessary to keep an eye on the “economic growth pillar” of the programme in particular. He said the CBvS is committed to stabilizing the economy, but growth will have to be initiated by the business community, but that growth must be felt in the pockets of citizens.

He said that while the bank is seeking to decrease inflation, there is also a role for the business community.

The CBvS director said companies must examine how they can operate more efficiently in order to reduce costs, so that not all cost-increasing developments have to be passed on to the consumer.