Suriname Secures Debt Rescheduling Agreement with China

Suriname has signed an agreement to reschedule its debt to China, totaling approximately $476 million, with repayments to begin this year. This agreement, achieved after four years of negotiations, includes a structured repayment plan for both the Exim Bank and ICBC debts, facilitated by diplomatic engagement between Suriname and China.

The government of Suriname has successfully arranged a debt rescheduling agreement with the People’s Republic of China, with initial repayments anticipated to begin this year. Finance and Planning Minister Stanley Raghoebarsing confirmed the signing of the debt restructuring during a meeting of the National Assembly, following a four-year negotiation process. Suriname’s outstanding debt to the Chinese state-owned Exim Bank amounts to approximately $476 million, of which $140 million is in arrears. The repayment of this debt will occur in two distinct phases, while an outstanding $68 million owed to the Industrial and Commercial Bank of China (ICBC) will be settled in a single payment. Minister Raghoebarsing emphasized that the recent visit of President Chandrikapersad Chan Santokhi to China played a crucial role in facilitating this rescheduling agreement. Although the technical and political aspects of the debt reorganization had been resolved previously, the formal agreement took additional time to finalize.

Suriname’s economic situation has necessitated negotiations with China regarding its substantial debt. With an estimated total indebtedness of $476 million owed to China’s Exim Bank and significant arrears, the Surinamese government has worked diligently over the last four years to secure a more manageable repayment framework. The recent high-level engagements between Suriname and China, including President Chan Santokhi’s visit, underscore the importance of international relations in resolving economic challenges facing small developing nations. The restructuring aims to alleviate fiscal pressure and encourage future economic growth.

The debt rescheduling agreement between Suriname and China marks a pivotal development for Suriname’s financial stability and underscores the significance of diplomatic relations in resolving fiscal difficulties. With structured repayment plans in place for both the Exim Bank and ICBC debts, Suriname aims to navigate its economic challenges more effectively, paving the way for potential growth and stability in the future.

Original Source: caribbean.loopnews.com