PARAMARIBO, Suriname – President Jennifer Simons says Suriname did not secure a loan from Bank of America during her recent working visit to London and that her discussions with the financial institution were intended solely on building a strategic partnership.
President Jennifer Simons speaking at news conference“We did not borrow money. What we did do was strengthen ties. We made agreements regarding support in terms of expertise and advice,” she told a news conference, adding that the discussions were also aimed at bringing international financial expertise to Suriname in anticipation of expected oil revenues.
President Simons told reporters that there is significant international interest in Suriname, and it is important that the Dutch-speaking Caribbean Community (CARICOM) country prepares in a timely manner for the economic developments brought about by the oil and gas sector.
According to Simons, the meeting took place in London because the international chief of Bank of America was there and had invited her for consultations.
She said that the parties discussed several issues including the further development of the Surinamese financial system and how international expertise can be utilized in this process.
The head of state said that Suriname must prepare for the arrival of large capital flows resulting from oil and gas developments and that this calls for a modern and stable financial system that can withstand international risks and economic fluctuations.
“We must align our banking legislation and our financial system with a period in which a lot of capital will flow into the country. As a country, we must protect ourselves and ensure a solid financial system,” said Simons, who was accompanied to the talks by Finance and Planning Minister Adelien Wijnerman and her advisor Sigmund Proeve.
According to Simons, the talks lasted several hours and marked the beginning of more intensive cooperation with international financial institutions.
She told reporters that discussions are also being held with other international banks to support Suriname in the further development of the financial sector.
Meanwhile, President Simons says the population should not expect the government to “fix everything that broke in five years in one year” telling reporters that she needs at least two years as a transition phase.
“But we also cannot keep saying: ‘We have no money,” she told reporters, adding that there are currently five tax bills before the National Assembly intended to reform the tax system.
President Simons acknowledged that “the problem is not simple,” she said in reference to the legal and illegal gold diggers from whom the country receives little in return.
The Gold Sector Regulation Committee is also not functioning as it should and the government has hinted that a gold authority will be established, for which the legislation will likely be sent to Parliament in the fourth quarter.
President Simons also stated that the price cap the government has set on fuel cannot continue indefinitely.
The government is forfeiting SRD 350 million per month to keep fuel prices at a certain level.
