Debt Rescheduling Agreement Between Suriname and China
Government Signs Debt Rescheduling Agreement with China
The Suriname government has signed a debt rescheduling agreement with China, with the first repayments to creditors expected this year. According to Finance and Planning Minister Stanley Raghoebarsing, the agreement was signed after four years of preparation.
Debt Management
According to debt management office data from mid-2024, Suriname owes Chinese state-owned Exim Bank an estimated US$476 million, of which US$140 million is in arrears. Payments to Exim will be rescheduled in two phases, while Suriname’s debt to the Industrial and Commercial Bank of China (ICBC) will be repaid in one tranche. As of the end of June, Suriname owed ICBC $68 million.
Key Factors
- The rescheduling was made possible because President Chandrikapersad Chan Santokhi had not visited China earlier this year.
- During the visit, Presidents Xi Jinping and Santokhi had signed the minutes on the national debt, but the settlement had yet to take place.
- The authorities said that the reorganization had already been completed at a technical and political level, but the formal settlement took a long time.
Conclusion
The debt rescheduling agreement between Suriname and China is a significant step forward in the country’s debt management. The agreement will allow Suriname to pay off its debts in a more manageable way, which will have a positive impact on the country’s economy.
FAQs
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Q: What is the estimated amount of debt owed by Suriname to Exim Bank?
A: The estimated amount of debt owed by Suriname to Exim Bank is US$476 million. -
Q: How will the payments to Exim Bank be rescheduled?
A: Payments to Exim Bank will be rescheduled in two phases. -
Q: What is the amount of debt owed by Suriname to ICBC?
A: As of the end of June, Suriname owed ICBC $68 million.
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