Suriname will implement a program to restore its macroeconomic and fiscal sustainability with a $50 million loan approved by the Inter-American Development Bank (IDB).

The loan will help Suriname to implement their economic reform programs in which they address the country’s macroeconomic and fiscal challenges while allowing the country to continue servicing its debt.

The IDB loan is structured as a Special Development Financing (SDL), an IDB financial instrument for budget support to address macroeconomic crises and preserve social progress and economic growth in member countries. This latest IDB loan is part of a financial package the Bank is providing Suriname to implement economic reforms and it complements financial and technical assistance being provided by the International Monetary Fund (IMF).

The loan is supporting enactment of budget measures to strengthen fiscal sustainability and reforms to promote monetary and financial stability and strengthen monetary policy independence. The country is also strengthening its governance framework to reduce its vulnerability to corruption. Such reforms are expected to help the country slow inflation and reduce its level of indebtedness in the next two years. This operation is in line with Vision 2025 - Reinvesting in the Americas: A Decade of Opportunities, created by the IDB to achieve recovery and inclusive growth in Latin America and the Caribbean, in the areas of institutional strengthening and governance.

The IDB $50 million loan has a 3-year grace period and a seven-year maturity period.