IMF Financing Likely To Support Suriname's Reform Agenda

• Fitch Solutions believes that the change in administration in Suriname has increased the likelihood of reforms to address structural fiscal and external imbalances. As a result, the agency has revised Suriname's score, in its Short-Term Political Risk Index, to 52.9 out of 100, from 50.8.
• Financing from the IMF and other multilateral lenders will likely reduce some near-term fiscal constraints on the government and support the implementation of reforms.
• However, reforms to reduce the fiscal deficit and allow a flexible exchange rate will likely weigh on the economic recovery, potentially triggering a backlash that could undermine the government's commitments.

(Source: Fitch Solutions)