The Inter-American Development Bank (IDB) approved a $20 million policy-based loan for Suriname to support public expenditure management reforms that aim to diversify the country’s economic base, raise growth potential and alleviate poverty. To achieve these goals effective planning, managing, executing and monitoring of public resources are needed to create the infrastructure for a modern, inclusive and competitive economy.
This program is expected to improve the quality, efficiency and effectiveness of public expenditure management systems such as public investment, public procurement, public financial management and audit and control.
In the area of public investment, the program aims to improve the growth contribution of capital spending in line with policy goals, while maintaining fiscal and debt sustainability. This will include a stronger regulatory framework, modern tools for the public investment cycle, and training of public investment officials.
In public procurement, the program will generate greater value for money, quality of spending, competition and transparency in the procurement cycle. This will include the introduction of modern tools and practices, including a functional procurement portal.
This is the second in a series of programmatic policy-based loans the IDB has approved for Suriname´s public expenditure reform. The first was approved on December 2011.
The IDB loan amortization is for a 20-year term, with a 5,5-year grace period, at a variable interest rate based on LIBOR.