Surinamese President Jennifer Simons has announced a critical debt restructuring agreement that prevents the nation from facing unsustainable foreign debt obligations within the coming years. The breakthrough came following intensive negotiations with major creditors including Staatsolie, TotalEnergies, and Bank of America.
During a presidential palace press conference on Friday, Simons emphasized that restructuring foreign debt was not merely a policy choice but an absolute necessity. Without intervention, Suriname would have faced crippling interest payments starting in 2027 that would have severely pressured both the national budget and exchange rate stability. The country faced approximately $150 million in interest payments alone for debt servicing.
The successfully negotiated arrangement postpones loan repayments until after 2028, providing immediate relief for foreign currency reserves and preventing excessive pressure on the exchange rate. This strategic move forms part of a broader government initiative to avoid prematurely committing future revenues to debt obligations.
In a significant parallel development, the government has fully settled the Value Recovery Instrument (VRI) debt, ensuring that oil royalties will be entirely available for Suriname’s use from 2028 onward. President Simons stressed that these funds must be allocated toward structurally strengthening national finances rather than new consumptive expenditures.
Simultaneously, authorities are engaged in discussions with China to restructure existing debt arrangements, aiming to align payment obligations with the country’s actual financial capacity.
Beyond debt management, the administration is implementing comprehensive tax system reforms. Noting that Suriname generates comparatively lower tax revenues than regional counterparts, the government has initiated the reform and autonomization of the tax authority. This overhaul aims to achieve more efficient revenue collection, broaden the tax base, and reduce structural deficits.
President Simons articulated the inseparable connection between debt restructuring and tax reform, noting that together these measures should establish greater financial stability, restore confidence, and create foundations for sustainable economic development. She acknowledged that the full impact of these restructuring efforts will only become apparent in coming years as the effectiveness of new agreements in creating sustainable payment obligations and additional budgetary space becomes evident.