Suriname: Fifth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria, Waivers of Nonobservance of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Suriname

SURINAME FIFTHREVIEW UNDER THE EXTENDED ARRANGEMENTUNDER THE EXTENDED FUND FACILITY, REQUESTS FORMODIFICATION OF PERFORMANCE CRITERIA,WAIVERS OF NONOBSERVANCE OF A PERFORMANCECRITERION,AND FINANCING ASSURANCES REVIEW—PRESS RELEASE; STAFF REPORT; AND STATEMENT BYTHE EXECUTIVE DIRECTOR FOR SURINAME In the context of theFifthReview Under the Extended Arrangement Under the ExtendedFund Facility,Requests for Modification of Performance Criteria,WaiversofNonobservanceofaPerformance Criterion,and Financing Assurances Review,thefollowing documents have been released andare included in this package: •APress Releaseincluding a statement by the Chair of the Executive Board. •TheStaff Reportprepared by a staff team of the IMF for the Executive Board’sconsideration onMarch20, 2024, following discussions that ended onFebruary 10,2024, with the officials ofSurinameon economic developments and policiesunderpinning the IMF arrangement under theExtended Fund Facility. Based oninformation available at the time of these discussions, the staff report was completedonMarch6, 2024. •AStaff Supplementupdating information on recent developments. •AStatement by the Executive DirectorforSuriname. TheIMF’s transparency policy allows for the deletion of market-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports andother documents. Copies of this report are available to the public fromInternational Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.org Web:http://www.imf.orgInternational Monetary FundWashington, D.C. IMF Executive Board Completes Fifth Review Under theExtended Fund Facility Arrangement for Suriname FOR IMMEDIATE RELEASE The IMF Executive Board completed the fifth review under the Extended Fund Facility(EFF) arrangement for Suriname, allowing for an immediate purchase equivalent to SDR46.7 million (about USD 62 million) of which SDR 19.1 million or about USD 25 millionwould be for budget support. The authorities’ continued commitment to fiscal discipline and macroeconomic stability ispaying off. The economy is growing, inflation is on a steady downward trend, and investorconfidence is returning. The authorities’ near-term priority is to maintain fiscal discipline, while ensuring that thepoor and vulnerable are protected, and persevere with the structural reforms to strengtheninstitutions and improve governance. Washington, DC – March 20, 2024:The Executive Board of the International Monetary Fund(IMF) completed the fifth review under the Extended Fund Facility (EFF) arrangement forSuriname and granted a waiver for nonobservance of a performance criterion. The completionof the review allows the authorities to draw the equivalent of SDR 46.7 million (about USD 62million), bringing total disbursement to SDR 243.7 million (about USD 323 million). Suriname’s EFF arrangement was approved by the Executive Board on December 22, 2021(see Press Release No. 21/400). Since then, Suriname has been steadily implementing anambitious economic reform agenda aimed at restoring fiscal and debt sustainability throughfiscal consolidation and debt restructuring, protecting the vulnerable by expanding socialprograms, upgrading the monetary and exchange rate policy framework, addressing thefinancial sector’s vulnerabilities, and advancing the anti-corruption and governance agenda. Following the Executive Board discussion on Suriname, Mr. Kenji Okamura, Deputy ManagingDirector, and Acting Chair, issued the following statement: “The authorities’ commitment to fiscal discipline and macroeconomic stabilization under theEFF-supported program is paying off. The economy is growing, inflation is on a steadydownward trend, and investor confidence is improving. Near-term downside risks highlight theimportance of maintaining the reform momentum to secure hard-won gains. “The authorities’ determination to carry out politically challenging reforms is commendable. Allquantitative performance criteria for this review were met, and structural reforms areproceeding, albeit with some delays. “The near-term priority is to preserve fiscal discipline to put public debt on a firmly downwardpath and build resilience to future shocks. The authorities’ commitment to removingunregistered and chronically absent workers from the public payroll will help create fiscalspace for a more meaningful wage increase for productive civil servants. Gradually phasingout electricity subsidies will help finance higher social assistance spending and channel moreresources toward growth-enhancing investment. Ensuring the efficient and effective allocationof social spending remains paramount. Stronger commitment controls to prevent theaccumulation of supplier arrears is also a priority. “Noteworthy progress has been made with debt restructuring. Bilateral agreements with allofficial creditors have been completed and the debt