Monday, 13 May 2013

Suriname: Government decides not to take loans from local banks

Following the advice of the Governor Gillmore Hoefdraad of the Central Bank of Suriname (CBvS), the government has decided not to take loans from local banks. The money would be used to pay for contracted works.
Mrs Djaienti Hindori, the president of the Surinamese Association of Bankers, says that even if a loan would be asked, it would be a regular pre-financing method. That is why all banks separately declared their willingness to cooperate whenever the government would have the intention to give out bonds. “But the government still has enough other legally approved possibilities to pre-finance its expenditures,” the banker says. “The total national and international loan ceiling has not yet been reached. Legally there is still a lot of room for the government,” says Mrs. Hindori. She further comments that in each country it can happen that there is a miss-balance between income and expenditures.
“Our country is not an exception. The president of the Association of Bankers however warns the administration and advises to put a good cash management policy in place. Also it should very well be controlled that all projects are being executed within the fixed budget and within a determined period of time. “The executing ministries should also make good arrangements with the Ministry of Finance regarding the timing of the contracts and the subsequent payments. Excessive consumptive expenditures should be limited to a minimum,” says Hindori.
For more news and expert analysis about Suriname, please see Suriname Politics & Security.
© 2013 Menas Associates

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