Suriname has signed a deal with China to reschedule its significant debt, totaling $476 million. This agreement, concluded after four years of negotiation, restructures payments to both the Exim Bank and the Industrial and Commercial Bank of China. Minister Raghoebarsing highlighted the importance of President Chan Santokhi’s earlier visit to China as instrumental in finalizing this arrangement, which is expected to begin repayments this year.
The government of Suriname has successfully negotiated a debt rescheduling agreement with the People’s Republic of China, as announced by Finance and Planning Minister Stanley Raghoebarsing. This agreement, which represents the culmination of four years of negotiation, is expected to initiate repayments to creditors within the current year. Suriname’s total debt to China’s state-owned Exim Bank is approximately US$476 million, of which US$140 million is currently in arrears, according to data from the debt management office as of mid-2024. The restructuring plan entails that Suriname’s payments to Exim will be distributed over two phases, while the outstanding debt to the Industrial and Commercial Bank of China (ICBC), amounting to $68 million, will be settled in a single payment. Minister Raghoebarsing emphasized that the rescheduling could not have been achieved without President Chandrikapersad Chan Santokhi’s trip to China earlier this year. During this visit, a memorandum regarding the national debt was signed by Presidents Xi Jinping of China and Chan Santokhi, even though the formal settlement took additional time to finalize.
The issue of debt management for Suriname has been particularly pressing due to the significant financial obligations incurred over previous years. The country finds itself dealing with large debts to foreign institutions, notably China, which has played a major role in financing various sectors within Suriname. The negotiations for debt restructuring are crucial for alleviating financial pressure and establishing a more sustainable repayment plan, thereby ensuring the country’s fiscal stability in the future. This new agreement is a strategic move to facilitate better financial management and economic recovery for Suriname.
The recent agreement to reschedule Suriname’s debt to China marks a pivotal step in addressing the country’s financial obligations and enhancing its economic prospects. The structured payment plan and the support from Chinese leadership underscore a cooperative effort between Suriname and China, which may lead to further economic development opportunities. Swift implementation of this agreement is essential for restoring fiscal health and enabling the government to meet its financial commitments without stifling public resources.
Original Source: caribbean.loopnews.com
