Suriname’s Ministry of Finance has formally dissolved its contentious debt restructuring agreement with financial advisory firm Lazard, marking the end of a five-year partnership that has cost the South American nation nearly $9.5 million. Finance Minister Adelien Wijnerman confirmed to Starnieuws that the termination follows mutual consent through official correspondence, though Suriname still owes approximately $3 million in outstanding fees to the New York-based investment bank.
The original 2020 contract, amended in 2025, stipulated Lazard would receive a $120,000 monthly retainer fee plus a 0.25% success fee on restructured or swapped foreign government debt and state-guaranteed commercial obligations—covering both principal and interest portions. However, several contractual provisions remained unenforced, including requirements mandating Lazard’s involvement in all debt negotiation phases and payment of $109,000 for legal advisory services regarding the Value Recovery Instrument (VRI).
The VRI—a debt financing mechanism that would have pledged future oil royalties to creditors in exchange for debt reduction—has been rendered obsolete by Suriname’s recent bond issuance that redeemed outstanding debts. Former government officials had promoted the VRI as potentially reducing Suriname’s debt by over $300 million, but financial experts condemned it as an oppressive agreement that would have indefinitely mortgaged the nation’s future oil revenues.
Background reveals Lazard was selected through a 2020 tender process that included five prestigious firms: Moelis & Company, Morgan Stanley, Credit Suisse, Rothschild, and Lazard Frères. A special committee appointed by former Finance Minister Armand Achaibersingh chose Lazard for its low bid and global reputation, despite the controversial terms.
Contract termination clauses allow either party to exit with thirty days’ notice, after which obligations cease except for specific provisions. The agreement also stipulates that if Suriname resumes debt management strategies within twelve months with previously involved parties, Lazard must be reengaged under identical terms. Minister Wijnerman assured that outstanding payments to Lazard will be settled, noting the firm—as a publicly traded company—must report client payment obligations to regulatory authorities.