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Suriname says well above fiscal targets as government sticks to reform program

Xinhua, September 25, 2016 Adjust font size:

Suriname is well above its 2016 fiscal targets as the government sticks to a reform program aimed to stabilize the economy, the country's Financial Ministry said in a press release on Saturday.

Monthly data indicated the country's international reserves are increasing, inflationary pressures are abating, and the exchange rate is beginning to stabilize, the release said.

The Ministry of Finance further assured the government's commitment to its economic reform program that is being supported by a Stand-By Arrangement with the International Monetary Fund (IMF).

After the collapse in global commodity prices, Suriname faced a deep balance of payment crisis in 2015.

To secure technical assistance for the reform program aimed to reduce the imbalance, the country entered a deal with the IMF in May, in which some 478 million U.S. dollars will be injected into the South American economy in a 24-month term.

The authorities' program mainly focused on the fiscal consolidation with reform measures including the elimination of electricity price subsidies and the introduction of a value added tax.

"As evidence of its commitment to the reform program, the government has already met or exceeded all but two targets for the period and is well above the all-important 2016 fiscal targets agreed upon with the IMF," the release said.

However, in light of the short-term influence that the reform measures have had on the Suriname people, the Ministry of Finance indicated that the government has decided to slow down the pace of implementing the program.

"Almost two thirds of the electricity tariff adjustments have already been implemented, while the fuel tax will be adjusted gradually until market levels by 2017," the release said.

With the government's revenue-increase measures in place, this gradual approach will not jeopardize the country's ability to meet the fiscal targets, it added.

Meanwhile, the Financial Ministry said the the government had consulted business and union representative organizations, civil society and opposition parties to foster their contribution to the reform program.

"In light of the positive results achieved by Suriname in a short period of time, we reiterate our intention to continue to work in close cooperation with international financial institutions to meet and exceed the conditions of the government's program," the release said. Endi