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Suriname

Author(s):
International Monetary Fund
Published Date:
November 2003
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I. Civil Service Reform: Background and Issues1

1. The need for a comprehensive public sector reform, targeting both the civil service and the public enterprises has been a repeated refrain in staff reports on Suriname for a number of years. These reports have argued that the sizes of the civil service and the wage bill are the main sources of fiscal vulnerability and macroeconomic instability; the poor quality of public service delivery has had a serious adverse effect on overall economic efficiency; and the large and generally unprofitable public enterprise system has been a drain on the government finances and a key obstacle to private sector development.

2. In 2002, the government formally announced its intention to move ahead with a comprehensive reform and invited the IDB and the UNDP to be joint partners in the process. Discussions between the government and the international agencies aimed at developing a strategy and a road map for the reform are still ongoing.

3. This note provides some background to the problems cited above, namely data on the size of the civil service; a discussion of the contribution of civil service wage policy to macroeconomic instability; and an account of the causes and symptoms of public sector inefficiency.

Basic statistics on employment and wages

4. According to official data, the central government has over 36,000 persons on its payroll, or about 40 percent of total formal sector employment. In comparison, Costa Rica’s civil service comprises 15 percent of total employment and Trinidad and Tobago 20 percent. When Surinamese civil servants are added to an estimated 15,000-17,000 workers in some 120 public enterprises and parastatal agencies, total public sector employment rises to close to 60 percent of total formal sector employment, or more than 25 percent of the economically active population and 12 percent of the total population. In contrast, public sector employment in the Latin America and Caribbean (LAC) averages 10 percent of the economically active population and 4 percent of the total population.

5. Over the 2000–02 periods, central government wages and salaries averaged 13 percent of GDP, the highest in LAC, where the average was 5 percent. The large wage bill is attributable mainly to the large number of employees rather than high salaries, at least for skilled personnel. In fact, the salaries of technical and managerial staff, despite recent large increases, may still not be adequate to attract and retain them. Wage compression is acute. In 2001, the salary of a person with a master’s degree was less than twice that of the lowest salaried civil servant (cleaning staff).

Wage Compression
Monthly Salary in guildersCleaning StaffMaster’s DegreeRatio
January 1, 199722,220124,9251:5.6
January I, 199840,000174,0001:4.4
November 1, 2001322,000606,0001:1.9
January 1, 2002387,0001,024,0001:2.6

Civil service salary adjustments—a recent history

6. The 2002 civil service increase was an attempt to bring the structure of salaries back in line with the civil service code, following a four-year period of ad hoc adjustments for certain groups of government workers. However, the decision to correct the misalignment in one step caused the monthly wage bill to increase by more than 80 percent2 and the annual wage bill by about 6½ percent of 2001 GDP. Moreover, concerns about the lack of budgetary resources to finance the wage adjustment sparked a 35 percent depreciation of the guilder and an increase in the inflation rate from less than 5 percent in 2001 to 28 percent in 2002.

7. In 1997 all civil servants were in one salary scale. Then, in 1998, the government created new “strategic groups”, i.e., teachers and nurses, and “constitutional groups”, i.e., military, police, and firemen, and also disconnected directors and deputy directors in ministries from the general salary scale. Differential wage increases were granted during the year so that workers in strategic and constitutional groups, who previously earned the same as their regular administrative counterparts, ended up with salaries as much as twice as large (Figure 1).

Figure 1:Evolution of Civil Service Salaries.

Source: CLO (government workers trade union).

8. In February 1999, civil servants received a 20 percent increase (inflation correction) of their base salary, and a purchasing power allowance of Sf 30,000 per month. The government also agreed to pay the income tax, heath care premium, and general old age premium associated with the inflation correction.

9. In October 1999, the government paid the teachers a new inflation correction allowance of 50–60 percent of base salary. The main civil service union, which represents administrative workers, had been lobbying the government (unsuccessfully) for a realignment of salaries based on the law. At first the union refused to accept the increase granted to the teachers but, in April 2000, acquiesced, and administrative workers were granted the increase retroactive to October 1999.

10. In October 2000, the new government granted civil servants an exchange rate compensation allowance of Sf 65,000 per month, following the adjustment in the official exchange rate from Sf 1,100 per U.S. dollar to Sf 2,200. This was followed in June 2001 by a cost of living allowance of Sf 100,000 – Sf 140,000 per month to all civil servants.

11. In January 2002, the government finally conceded to the request of the main civil service union for a realignment of the salary structure.3 All the various cost of living and exchange rate compensation allowances, which were not subject to tax and other deductions, were consolidated in the base (taxable) salaries. Salary increases were granted in such a way to ensure that not only was there a realignment consistent with the civil service code but that no worker received less than what his/her existing “take home” pay.

Wage policy and inflation

12. Because of the size of the civil service, adjustments in salaries have traditionally put severe strain on the public finances (Figure 2). Wage increases have been associated with a build up of exchange rate and inflation pressures as a result of the government’s tendency of financing the resulting fiscal deficit through central bank borrowing. This mechanism, which is consistent with the findings of Fischer, Sahay, and Végh (2002), is described in Box 1.

Figure 2:Real Wages and Fiscal Deficit

Sources: Central Bank of Suriname; and Fund staff estimates.

13. Changes in central bank net credit to government, i.e., the main source of financing government fiscal deficits, have been a key factor determining changes in the monetary base and broader monetary aggregates. Changes in net credit were the main contributor to changes in central bank net domestic assets (Figure 3), which were the main component of changes in reserve money (Figure 4). Finally, changes in reserve money were the main contributor to changes in M2 (Figure 5), which in turn are strongly correlated with changes in inflation and the exchange rate (Figure 6).

Figure 3:Growth of Net Domestic Assets and Contribution of Net Credit to Government

Figure 4:Reserve Money Growth Decomposition

Figure 5:M2 Growth Decomposition

Figure 6:Exchange Rate Depreciation, Inflation, and Money Growth

Sources: Central Bank of Suriname; and Fund staff estimates.

Public service delivery

14. The quality of public service delivery has steadily deteriorated over the years. In part, this reflects the “bottom heavy” nature of the civil service. Despite the large size of the civil service, many voices in the society express the need for more teachers to improve education, more police to deal with growing crime, more nurses to replace those that are constantly lured abroad, more qualified managers and technicians in the ministries, and so on. As mentioned above, salaries for skilled personnel are below the private market, making it difficult to attract or retain the best trained and experienced staff. However, there is also another issue: even among skilled personnel, there is a mismatch of existing personnel with the type of jobs needed. Thus, in the ministry of education, although the number of teachers suggest a teacher to school-age population ratio of less than 1:20, there is an acute shortage of teachers for schools outside the urban areas.

15. Another cause of poor public service delivery has been the absence of effective personnel management. This has led to a serious breakdown in discipline, reflected in a high rate of absenteeism at the workplace. This absenteeism is tolerated without any real threat of sanctions for the workers, who, in any case, are the beneficiaries of very protective labor laws and courts. Public service delivery has suffered because government expenditure on the wage bill has crowded out other types of spending, notably infrastructure spending. This has adversely affected public works (e.g., roads, sanitation) and the provision of education and health services, and forced ministries to maintain antiquated office equipment and technologies, thereby hurting productivity.

Civil service reform—key components of the package

16. As the government and its international partners continue discuss a strategy for comprehensive reform of the civil service, it is clear that the process must include the following:

  • A careful analysis of core functions of government, the profile of employees needed to fulfill these functions, and the type of career paths (and compensation) that could be implemented to create an efficient civil service.
  • A gradual downsizing of the civil service and the large number of public enterprises and agencies. This will be key to freeing up resources for needed for productivity-enhancing nonwage expenditures and improving long-term prospects for fiscal sustainability and macroeconomic stability.

A strategy that facilitates the absorption of surplus public sector workers into the private sector. Key initiatives in this area would include the removal of a host of bureaucratic obstacles to private investment, and divestment from productive sector activities (especially agriculture, utilities, and financial services), which discourage private investment and do not appear to be core functions government in any case.

Box.Inflation Spiral Dynamics

According to this inflation spiral hypothesis, the monetary authorities accommodate inflation expectations that have already been reflected in the exchange rate and the price level. Thus, if the hypothesis is valid, increases in inflation and exchange rate depreciations should precede increases in money growth. To verify if money growth leads or lags inflation and the exchange rate. Granger causality tests were conducted by running vector auto regressions (VARs) in a three variable system containing the inflation rate, the nominal exchange rate depreciation and money growth (see Fischer, Sahay, and Végh) using quarterly data for the period 1995-2002.1 In case that one variable Granger causes the other, a chi-squared test rejection of the null hypothesis at a 5 percent significance level is indicated with two asterisks and at the 10 percent level by one asterisk.

Granger Causality Test Results
Row i Granger Causes Column jMoney GrowthER DepreciationInflation
Money growthNoNo
ER depreciationYes (**)Yes (**)
InflationYes (*)Yes (**)

The results suggest that the causality runs from exchange rate or inflation to money growth. Thus supporting the hypothesis. However, the causality between exchange rate depreciation and inflation is indeterminate. This may be due to the fact that both the exchange rate depreciation and inflation may be Granger-caused by public wage growth. Unfortunately, a quarterly public wage growth series for the period of study is not available to test this last hypothesis.

1

Given the relatively small number of observations text results are only intended to be suggestive of their inflation spiral hypothesis. The unrestricted VAR had to be minimized to one or two lags.

II. The Surinamese Financial System: Structure, Condition and Recent Policy Developments1

A. Introduction

1. This chapter discusses the structure of the financial system and provides a preliminary assessment of the condition of the banking system.2 Recent legislation and other measures taken by the government of Suriname to improve banking supervision are discussed in their context of the financial sector reform implications.

2. Section B discusses the overall structure of the financial system. Section C discusses in detail the market structure, ownership structure, and lending portfolio composition of the banking system. Section D analyzes the condition of the banking system. Section E discusses the implications of the findings in Section D for financial sector reform and reviews recent initiatives taken by the authorities.

B. Structure of the Financial System

3. The financial sector consists of the Central Bank of Suriname (CBvS), a commercial banking system, and a number of nonbank financial institutions. The central bank determines credit, monetary and exchange rate policies, and is responsible for the regulation and supervision of the financial system. The banking system is composed of eight banks.3 Except for the deposits in the Postal Savings Bank (SPSB), which represent less than 5 percent of the total assets of the banking system, there is no explicit deposit insurance scheme for the protection of depositors.4 Nonbank financial institutions (NBFI) comprise one trust company, 12 insurance companies, 29 pension funds, 5 provident funds and 27 credit unions.5 There are also 21 foreign exchange houses (cambios).

4. Banks dominate the financial system representing about 68 percent of total financial system assets in 2000,6 while reporting NBFI represent the remaining 32 percent.7

Financial System Assets (FSA) (2000)
Value of

Assets

(Billions of

guilders)
Percent of

FSA
Percent of

GDP
Banking System66768.340.1
Reporting NBFI31031.718.6
Pension Funds23724.314.2
Insurance Companies636.43.8
Credit Unions101.00.6
Total Financial System Assets977100.058.7
Sources: Supervision Department-Central Bank of Suriname; and General Bureau of Statistics.
Sources: Supervision Department-Central Bank of Suriname; and General Bureau of Statistics.

5. The most important group of NBFI is the pension funds, which represent about 24 percent of total financial system assets. The four largest pension funds represent about 83 percent of total pension fund assets. The second most important group is the insurance companies with 6 percent of total financial system assets. One locally owned insurance company, accounts for about 48 percent of all insurance companies’ assets and owns a controlling interest in one of the large commercial bank.

6. In spite of their relative importance in the financial system as indicated by asset size, NBFI seem to provide less than 10 percent of the total credit to the domestic economy. The limited information available seems to suggest that the largest pension funds invest their resources mainly in foreign assets.

C. Market Structure, Ownership, Structure, and Lending Portfolio Composition of the Banking System

7. The banking sector accounts for over 90 percent of the credit extended to the domestic economy. The system comprises eight banks, five of which are government owned. However, although the government owns 51 percent of Hakrinbank (HKB) shares, HKB acts and is widely perceived as an independent entity and enjoys virtually the same prestige as the two larger banks. The NOB is a development bank funded mainly by the Surinamese government and does not take deposits from the public.

Ownership Structure of the Banking System, 2002(In percent)
BanksLargest ShareholdersGovernment of SurinameSmaller Shareholders
De Surinaamsche Bank 1 (DSB)491041
Royal Bank of Trinidad and Tobago2 (RBTT)10000
Hakrinbank (HKB)115138
Finabank (FB)0
Surinaamse Postpaarbank (SPSB)01000
Stichting Surinaamse Volkscredietbank (VCB)01000
Landbow Bank (LBB)01000
Nationale Ontwikkelingsbank (NOB)01000
Source: Supervision Department, Central Bank of Suriname.

In 2001 ABN-AMRO, a large international Dutch Bank, sold its 49 percent participation in DSB to Assuria N.V, Suriname’s largest insurance company.

Before 2000, what would become RBTT was a full service branch of ABN-AMRO. In 2000 ABN-AMRO sold all its shares to RBTT, an international bank whose activity is concentrated in Trinidad and Tobago and the rest of the Caribbean.

Source: Supervision Department, Central Bank of Suriname.

In 2001 ABN-AMRO, a large international Dutch Bank, sold its 49 percent participation in DSB to Assuria N.V, Suriname’s largest insurance company.

Before 2000, what would become RBTT was a full service branch of ABN-AMRO. In 2000 ABN-AMRO sold all its shares to RBTT, an international bank whose activity is concentrated in Trinidad and Tobago and the rest of the Caribbean.

8. An important feature of the banking system is its high concentration. Three large commercial banks account for about 80 percent of total claims, assets, and deposits of the banking system and have been gaining market share at the expense of the smaller banks.

Market Structure of the Banking System(In percent)
20002002
BanksTotal

Assets
Total

Credit
Total

Deposits
Total

Assets
Total

Credit
Total

Deposits
De Surinaamsche Bank (DSB)37.937.240.242.841.243.9
Royal Bank of Trinidad and Tobago (RBTT)28.322.327.726.024.826.2
Hakrinbank (HKB)14.913.615.515.916.516.6
Finabank (FB)0.70.90.60.81.20.8
Surinaamse Postpaarbank (SPSB)5.24.85.53.62.93.5
Stichting Surinaamse Volkscredietbank (VCB)6.510.96.66.58.05.1
Landbow Bank (LBB)5.89.23.33.65.03.2
Nationale Ontwikkelingsbank (NOB)0.71.10.60.80.40.7
Source: Supervision Department-Central Bank of Suriname.
Source: Supervision Department-Central Bank of Suriname.

9. The three smaller state owned commercial banks were established in order to resolve a perceived failure of larger banks to allocate credit to certain segments of the society and to some of the sectors considered by the government as important for Suriname’s overall development. LBB was established to stimulate the development of agriculture, animal husbandry, fisheries, and forestry. VCB was established to satisfy the credit needs of the lower socio-economic strata. Its primary focus has been making small loans to individuals and also to manage, on behalf of the government, funds for housing lending. SPSB was established to mobilize small savings and offer loans to lower income groups. Because of their socio-economic role, the three smaller commercial banks have received funding from the Surinamese and Dutch governments in differing degrees for special lending programs in addition to their deposit funding.

10. The social role assigned to these banks has resulted in a credit allocation that has significant differences from that of the three large commercial banks. The three small state banks have consistently allocated over 55 percent of their loan portfolios to agriculture and housing, consistent with their social mandate, while the large commercial banks have tended to stay away from these sectors and focus their lending in trade activities and in the financing of different services activities.

Credit Allocation by Sectors of the Main Groups of Commercial Banks(In percent of total credit)
20002002
SectorsThree Large

Banks
Three Small

Banks
Three Large

Banks
Three Small

Banks
Agriculture, forestry, and fisheries9.735.14.527.0
Mining0.71.90.40.5
Construction and industry9.99.89.54.7
Trade23.810.730.010.7
Housing2.420.84.931.3
Other services53.521.750.725.8
Source: Supervision Department-Central Bank of Suriname.
Source: Supervision Department-Central Bank of Suriname.

11. The rest of the banking system is comprised of two small banks. NOB was established with the purpose of funding the development of national industries that contribute to the social and economic development of Suriname. The NOB engages in concessionary medium- and long-term lending and has systematically maintained over 88 percent of its lending portfolio concentrated in the industrial, agriculture, forestry, and fisheries sectors. FB is a very small privately owned full service commercial bank and has a lending portfolio composition which has a strong trade and services component similar to that of the large commercial banks.

D. A Preliminary Assessment of the Condition of the Banking System

Overall condition of the banking system

12. On the basis of official data the three large commercial banks appear relatively healthy, while the three small state owned banks have problems. The three small state owned banks have had a negative return on assets and negative capital adequacy ratios8 while, in contrast, the large commercial banks have a capital adequacy ratio which has been systematically above Basle’s minimum guidelines and have obtained a positive return on assets. The nonperforming loan ratio for the three small state banks has averaged over 30 percent during the last three years, more than three times that of the three large commercial banks.

Possible explanations of the current condition of the banking system

13. The main reason for the marked differences in the condition of the large commercial banks and the three small state owned banks lies in the fact that the three small state owned banks were created in large part to satisfy social objectives. Creating financial institutions with this kind of mission undermines their chances of being financially viable, as they are more likely to face problems such as adverse selection, a weakening of incentives to operate on the basis of sound internal controls and lending screening criteria, moral hazard, and lack of diversification.

14. The adverse selection problem originates because the small state banks were created to provide credit to sectors and agents that large commercial banks avoided. As discussed in Section C, the small state commercial banks maintained a very large share of their loan portfolio in agriculture and housing, in contrast with the large commercial banks. It is possible that part of the reason for the large banks’ relative underweight position in these sectors reflects their perception of low profitability or risk-adjusted rate of return.

15. The introduction of social objectives in the operation of banks usually entails replacing clear and measurable profit maximizing criteria by nonmeasurable and unclear social welfare maximization criteria that can be easily influenced by noneconomic considerations to cater specific interests. Therefore, the lack of a clear profit maximizing rule and market discipline as a guiding principle for operations tends to reduce the incentives to develop and improve sound internal controls and lending practices. This may also give management incentives to operate a bank in ways that create moral hazard problems. The fact that sound internal controls and lending screening criteria were lacking in the small state owned commercial banks and the large amount of nonperforming loans compared with the profit oriented banks are evidence in favor of this point.

16. The focus on specific sectors such as agriculture, forestry, fisheries, and housing prevented the banks from diversifying adequately their loan portfolio. The large exposure to developments in a particular sector is even more serious in an economy with a history of macroeconomic instability such as Suriname where the quality of borrowers may change rapidly.

17. Finally, the weak banking supervision environment in Suriname also played a role in allowing this situation to develop without adequate and prompt reaction. The weakness in supervision has mainly been due to (i) inadequate regulations satisfying international standards; (ii) inadequate staff resources to conduct onsite or offsite inspections with the comprehensiveness and frequency required; and, (iii) limited enforcement powers to collect the necessary financial information on a timely basis and to ensure compliance of directives from the supervision department.

E. Implications for Financial Sector Reform

18. The first implication of the above analysis for any financial sector reform program is that the regulatory and supervisory framework should be significantly strengthened. Adequate banking supervision regulations complying with international standards and a sufficient amount of well trained supervisory staff are required. The enforcement powers of the supervision department need to be increased to allow it to collect accurate and timely information from financial institutions, especially in the case for the small state banks and NBFI. In particular, information on the latter institutions is needed to permit appropriate consolidated supervision.

19. The authorities have already taken important steps to address these problems. In January 2003 a new banking supervision act was enacted by parliament that enhances the supervisory powers of the central bank. Making use of its enhanced supervisory powers, the central bank issued five new regulations regarding capital adequacy, classifications of loans and provisioning, large exposures, insider lending and fixed assets investments that will enable Suriname to comply with several of the requirements in the Basel Committee’s Core Principles for Effective Banking Supervision. In addition, Fund technical assistance was requested and has already been scheduled to assist in the implementations of the new regulations. Box 1 provides a summary of the main improvements of the new banking supervision act with respect to the previous version and Box 2 summarizes the five new central bank regulations.

20. The second implication for financial sector reform is that the situation of the small state banks needs to be resolved as soon as possible. The authorities understand the urgency of the situation and have obtained support from the IDB to determine the financial situation of the small state banks and recommend possible solutions. A final decision regarding the future of the banks is expected by the beginning of 2004.

21. A lasting solution to the problem of the small state banks must necessarily involve eliminating the perverse microeconomic incentives generated by using financial institutions as a way of catering to the needs of some sensitive economic sectors and segments of the society neglected by the large commercial banks. Three generic alternative types of solution that satisfy this condition are (i) bank restructuring and continued public ownership with private management that ensures strict profit maximization behavior;9 (ii) restructuring and privatization; or (iii) liquidation. All alternatives imply making difficult decisions regarding the allocation of costs among the parties of the financial reform, administration and disposal of nonperforming loans and the potential social cost of downsizing. In making a final decision between the alternatives, the minimization of the financial cost to the government and the maximization of the involvement of the private banking community in the loan recovery process must be key criteria. The first is needed to minimize the macroeconomic impact of financing the reform whose costs on the basis of international experience are likely to be significant, while the second is more likely to maximize the recovery of nonperforming loans.

Box 1.Main Improvements in the Banking Supervision Act

Bank licensing

The new banking act introduces a formal system of licensing, provides the central bank with exclusive authority to issue bank licenses and prohibits unlicensed persons from conducting banking business. It also sets out detailed criteria for the issue of licenses and gives the central bank very wide discretionary powers to refuse a license when considering applications. This replaced a simple requirement of a no objection certificate from the central bank as the only requirement to start operations.

Changes in control of banks

The new law gives the central bank new powers to control changes in the ownership and control of banks that were absent in the past. Without consent of the central bank, no person may acquire, hold, or increase a qualifying holding (5 percent) in a bank or exercise any control from such a holding.

Prudential guidelines

The new law clarifies and strengthens significantly the central bank’s legal powers to issue guidelines for the purpose of bank supervision. In particular, it empowers the central bank to issue guidelines to banks in the interest of their solvency or liquidity and in relation to their administrative and management organization, including financial administration and control.

External auditors and reporting

The new law improves substantially the central bank’s ability to obtain the information it needs for prudential supervision in certain key respects. It requires banks to notify the central bank if they propose to change their external auditors and to authorize access to all written materials produced by external auditors in relation to the auditing processes. It also authorizes the central bank to conduct special investigations into the management or the financial condition of banks and obtain all necessary information it needs for consolidated supervision.

Corrective action

The new law considerably improves the central banks ability to oblige banks to take corrective action. Under the previous act, if a bank failed to comply with a central bank request, the central bank could only inform a bank of its concerns and publish its correspondence with the bank. Instead, the new law allows the central bank to compel its governing organs to exercise their authority subject to the approval of persons designated by the central bank.

Revocation of licenses

The new law authorizes the central bank to revoke licenses in a wide range of circumstances, such as inadequate capital and directors or controlling shareholders not considered be “fit and proper” to manage a bank. This is a considerable improvement over the previous law which made no provision to close a bank by withdrawing its certificate of no objection.

Emergency arrangements and bankruptcy

The new law considerably improves the procedure for dealing with insolvent or illiquid banks. In a case where a bank is unable to meet its liabilities, the only action the central bank could take with the previous legislation was an application to the court for the declaration of a moratorium. However, the new law permits the central bank in such cases to apply to the court for an emergency measure to be taken in the interests of the bank’s creditors. If the court is satisfied, it will appoint one or more administrators who will assume all the powers of the hank’s directors and shareholders. The administrator then proceeds, under the control of the court, to manage the bank in the interests of the creditors and, if necessary, to wind up its affairs and to make distributions to Creditors.

Box 2.The Central Bank’s Prudential Regulations

Capital adequacy

The regulation imposes a minimum capital requirement of 4.5 billion guilders with a grace period of three years for those banks which currently fall below this level. In addition, all banks have to observe a minimum risk weighted capital ratio of 8 percent, while the central bank can, when necessary, impose higher ratios on individual banks. The required ratio is calculated on a consolidated basis only.

Classification of loans and provisioning

The regulation has the objectives of obliging the senior management of banks to adopt credit policies and to introduce minimum standards for the accounting treatment commercial banks apply to their outstanding loans. The regulation closely reflects international practice as recommended by the Basel Committee and provides detailed guidance, particularly in the area of loan accounting.

Large exposures

The regulation imposes a limit on single large exposures (including exposures to counterparties related to each other) of 25 percent of a bank’s capital, although the central bank can authorize a bank to exceed this limit if suitable collateral is provided. In addition, the aggregate total of a bank’s exposures may not exceed 600 percent of its capital. Regular reports of large exposures have also to be made to the central bank. The limits are applied on a consolidated basis.

Insider lending

The regulation closely follows the Basel’s Committee’s in this respect. It imposes a limit on lending to a single insider of 25 percent and a limit of 100 percent of capital for aggregate loans to insiders.

Fixed asset investments

The regulation limits bank’s direct and indirect investments in fixed assets to 100 percent of the capital base (adjusted to include those fixed asset revaluation reserves which are ineligible to be included in capital when calculating the risk weighted ratio).

22. The current financial situation of the small state banks and the financial costs that the government of Suriname will have to incur to solve the problem underscores the dangers of using financial institutions as vehicles to pursue social objectives. The use of the financial system to channel subsidies may significantly obscure and magnify the cost of attaining a specific social objective by encouraging resource misallocation and increasing the vulnerability to systemic banking problems. Transparency and the targeting principle suggest that these subsidies, if determined to be socially beneficial, should be channeled through the government budget so that their costs are clear to society.

Table 1.Suriname: Gross Domestic Product by Sectors of Origin at Constant Prices
19981999200020012002 1/
(In millions of Suriname guilders at 1990 prices)
Gross domestic product4,1934,1574,1544,3434,475
Agriculture276287306339337
Mining191202185224209
Manufacturing281256288302324
Electricity, water, and gas208196177185205
Construction206176155162163
Trade, restaurants, and hotels638602577504509
Transport and communication273278349442464
Finance686675676674681
Government458457467476481
Personal services6869707172
Less: inputed service charge285267265273273
Plus: indirect taxes - subsidies304300297312322
Informal sector889926872925982
(Percentage change)
Gross domestic product2.2-0.9-0.14.53.0
Agriculture-6.14.06.610.8-0.6
Mining6.15.8-8.421.1-6.7
Manufacturing2.2-8.912.54.97.3
Electricity, water, and gas7.2-5.8-9.74.510.8
Construction16.4-14.6-11.94.50.6
Trade, restaurants, hotels2.1-5.6-4.2-12.71.0
Transport and communication5.81.825.526.65.0
Finance1.8-1.60.1-0.31.0
Government2.9-0.22.21.91.1
Personal services4.61.51.41.41.4
Less: inputed service charge4.0-6.3-0.73.0-0.1
Plus: indirect taxes - subsidies2.7-1.3-1.05.13.0
Informal sector-0.34.2-5.86.16.1
Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Table 2.Suriname: Gross Domestic Product by Sectors of Origin at Current Prices
19981999200020012002 1/
(In millions of Surinamese guilders)
GDP at market prices445,059761,4821,176,9091,664,3552,234,399
Agriculture37,30664,285119,190165,364213,060
Mining20,81655,807104,521122,905153,158
Manufacturing35,99660,22696,34996,568103,122
Electricity, water and gas20,91325,51534,15355,48757,922
Construction17,05624,64534,48051,59861,983
Trade, restaurants and hotels55,952104,995160,167194,190242,144
Transport and communication21,30244,99586,644116,877149,602
Finance51,69190,757137,993198,629253,068
Government73,377101,501162,217212,878377,678
Personal services5,15912,61928,32030,38645,508
Less: imputed service charge16,28831,53936,03450,46468,009
Informal sector66,787111,857143,200236,870332,270
Indirect taxes minus subsidies54,99295,819105,709233,067312,893
(In percent of GDP at market prices)
Gross domestic product100.0100.0100.0100.0100.0
Agriculture8.48.410.19.99.5
Mining4.77.38.97.46.9
Manufacturing8.17.98.25.84.6
Electricity, water and gas4.73.42.93.32.6
Construction3.83.22.93.12.8
Trade, restaurants and hotels12.613.813.611.710.8
Transport and communication4.85.97.47.06.7
Finance11.611.911.711.911.3
Government16.513.313.812.816.9
Personal services1.21.72.41.82.0
Less: inputed service charge-3.7-4.1-3.1-3.0-3.0
Informal sector15.014.712.214.214.9
Indirect taxes minus subsidies12.412.69.014.014.0
Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Table 3.Suriname: Gross Domestic Product by Expenditure at Constant Prices
19981999200020012002 1/
(In millions of Suriname guilders at 1990 prices)
Gross domestic product4,1934,1574,1544,3434,475
Consumption4,0793,7724,2174,4684,515
Private2,6962,6722,6803,0602,970
Public1,3831,1001,5371,4071,546
Investment8906764951,2071,015
Private4274233981,105936
Public4632529710279
Exports of goods and nonfactor services1,0821,1388141,017953
Imports of goods and nonfactor services1,8581,3891,3712,3492,008
(Percentage change)
Gross domestic product2.2-0.9-0.14.53.0
Consumption7.1-7.511.86.01.1
Private0.4-0.90.314.2-3.0
Public23.1-20.539.7-8.49.8
Investment20.9-24.1-26.8143.9-15.9
Private-22.1-1.0-6.0177.8-15.3
Public146.8-45.5-61.65.4-22.7
Exports of goods and nonfactor services4.45.2-28.525.0-6.3
Imports of goods and nonfactor services25.6-25.2-1.371.3-14.5
Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Table 4.Suriname: Gross Domestic Product by Expenditure at Current Prices
19981999200020012002 1/
(In millions of Surinamese guilders)
Gross domestic product445,059761,4821,176,9091,664,3552,234,399
Consumption432,971683,6731,194,6571,712,2062,254,382
Private286,131482,127759,2191,172,8291,482,627
Public146,841201,546435,437539,377771,755
Investment94,493123,794140,184462,540506,834
Private45,36577,546112,684423,349467,346
Public49,12946,24927,50039,19239,488
Exports of goods and nonfactor services114,832208,511230,594389,874475,852
Imports of goods and nonfactor services197,237254,496388,526900,2651,002,669
(In percent of GDP)
Gross domestic product100100100100100
Consumption97.389.8101.5102.9100.9
Private64.363.364.570.566.4
Public33.026.537.032.434.5
Investment21.216.311.927.822.7
Private10.210.29.625.420.9
Public11.06.12.32.41.8
Exports of goods and nonfactor services25.827.419.623.421.3
Imports of goods and nonfactor services44.333.433.054.144.9
Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Sources: General Bureau of Statistics; and Fund staff estimates.

Preliminary estimates.

Table 5.Suriname: Agriculture, Livestock, and Fisheries—Production Data
19981999200020012002
(In metric tons, unless otherwise indicated)
Agricultural production
Paddy188,410180,296163,655191,370157,105
Bananas37,58254,71048,70643,1398,071
Plantains14,00410,87410,78212,48111,449
Palm oil fruit5600000
Vegetables 1/21,18515,02115,75817,07317,138
Peanuts201256254265207
Cocoa and coffee231911
Other food crops10,86910,9409,93513,8054,818
Citrus14,12013,64312,58413,69914,898
Coconuts 2/9,1868,9348,5178,05610,033
(In hectares, unless otherwise indicated)
Planted area
Paddy
Physical area49,35049,35049,35049,35049,350
Planted area50,13548,46041,99550,78040,050
Crop intensity 3/1.020.980.91.00.8
Bananas2,1522,1432,1822,1722,178
Plantains616460496536482
Oil palm1,9001,9001,900n.a.n.a.
Citrus1,7751,6991,7381,6891,736
(In metric tons per hectare, unless otherwise indicated)
Yield
Paddy3.83.73.93.83.9
Bananas19.027.024.1n.a.n.a.
Plantains22.723.621.723.323.8
Palm oil fruit0.00.00.00.00.0
Livestock
Meat production
Beef2,1122,2461,9521,8901,606
Pork1,0611,0061,1651,2821,437
Chicken3,0253,805n.a.4,9205,538
Eggs 4/3538505555
Sources: Ministry of Agriculture; Animal Husbandry and Fishing via General Bureau of Statistics.

Cabbage, tomatoes, and green vegetables.

In thousands of units.

The ratio of planted to physical area; reflects areas with two harvests.

In millions of units.

Sources: Ministry of Agriculture; Animal Husbandry and Fishing via General Bureau of Statistics.

Cabbage, tomatoes, and green vegetables.

In thousands of units.

The ratio of planted to physical area; reflects areas with two harvests.

In millions of units.

Table 6.Suriname: Bauxite Sector—Production Data
19981999200020012002 1/
(In thousands of metric tons)
Bauxite
Production3,8893,7153,6104,3944,002
Alumina
Production1,7711,8531,9061,8931,903
Exports1,7251,8581,8691,9091,886
Aluminum
Production27.56.60.00.00.0
Exports27.56.80.00.00.0
(Percentage change)
Bauxite
Production0.3-4.5-2.821.7-8.9
Alumina
Production2.64.62.9-0.70.5
Exports4.77.70.62.2-1.2
Aluminum
Production-1.8-76.0-100.0
Exports-1.8-75.3-100.0
(In thousands of metric tons)
World totals
Bauxite production123,004130,128138,810137,648141,716
Alumina production45,04345,78448,11948,48849,788
Aluminum production22,65423,71024,46524,47726,099
(In percent)
Suriname’s market share
Bauxite production3.22.92.63.22.8
Alumina production3.94.04.03.93.8
Aluminum production0.10.00.00.00.0
Sources: Central Bank of Suriname; Bauxite Institute of Suriname; and World Metal Statistics.

Preliminary estimates.

Sources: Central Bank of Suriname; Bauxite Institute of Suriname; and World Metal Statistics.

Preliminary estimates.

Table 7.Suriname: World Production, Consumption and Changes in Stocks of Primary Aluminum(In thousands of metric tons, unless otherwise indicated)
19981999200020012002
Total world production22,65423,71024,46524,47726,099
Total world consumption21,82623,31224,87423,49524,821
Surplus or deficit (-) in production828398-4099811,279
Memorandum item:
World price of aluminum 1/1,375.61,360.01,551.51,446.71,351.1
(percent change)-15.10.214.1-6.8-6.6
Sources: World Metal Statistics; EDSS, Commodity Price System.

U.S. dollars per metric ton.

Sources: World Metal Statistics; EDSS, Commodity Price System.

U.S. dollars per metric ton.

Table 8.Suriname: Consumer Price Index—Paramaribo and Suburbs
Total

Index
Food and

Beverages
Housing and

Furnishings
Clothing and

Footwear
Other

Expenses
Weights until 2000100.040.023.611.025.4
Weights after 2000100.035.07.04.153.9
(December 2000 = 100)
Period average
199624.823.629.721.118.8
199726.625.629.522.822.2
199831.730.933.830.326.8
199962.957.264.461.263.6
2000100.0100.0100.0100.0100.0
2001103.3100.8102.795.6105.5
2002119.3118.6113.692.1122.6
End-of-period
199617.921.614.314.815.8
199721.123.919.217.919.3
199826.027.524.426.024.0
199955.357.449.659.951.9
2000100.0100.0100.0100.0100.0
2001104.6103.0102.390.6107.0
2002134.3134.9127.495.3137.8
(In percent change)
Period average
19961.1-7.3-4.31.617.4
19977.38.8-0.68.018.2
199819.020.514.332.520.7
199998.884.990.6102.2137.1
200058.975.055.463.557.1
20013.30.82.7-4.45.5
200215.517.610.6-3.616.2
End-of-period
19960.5-3.1-4.85.810.4
199718.310.734.020.722.3
199822.915.127.145.024.7
1999112.8108.7103.6130.6115.9
200080.974.1101.666.992.7
20014.63.02.3-9.47.0
200228.431.024.55.228.8
Source: General Bureau of Statistics.
Source: General Bureau of Statistics.
Table 9.Suriname: Employment by Sector
19981999200020012002 1/
(Number of employees)
Total63,15362,07362,50662,89463,574
Mining3,0642,7222,4902,3882,168
Manufacturing6,4736,4306,3166,1976,233
Utilities1,4061,4231,6221,6321,665
Construction1,3081,2841,2771,2621,241
Trade6,6226,1576,2796,2266,352
Transport and communication2,3082,1552,0762,0272,002
Banking1,6031,5291,5061,3141,467
Insurance309312296289309
Other services2,3332,1722,1692,3322,442
Government37,72737,88938,47539,22739,676
(Annual percentage change)
Total2.3-1.70.70.61.1
Mining-9.0-11.2-8.5-4.1-9.2
Manufacturing1.8-0.7-1.8-1.90.6
Utilities-5.21.214.00.63.2
Construction-2.0-1.8-0.5-1.2-1.7
Trade8.3-7.02.0-0.82.0
Transport and communication0.8-6.6-3.7-2.4-1.2
Banking6.3-4.6-1.5-12.711.6
Insurance-4.61.0-5.1-2.46.9
Other services6.9-6.9-0.17.54.7
Government2.60.41.52.01.1
(In percent of total)
Total100.0100.0100.0100.0100.0
Mining4.94.44.03.83.4
Manufacturing10.210.410.19.99.8
Utilities2.22.32.62.62.7
Construction2.12.12.02.02.0
Trade10.59.910.09.910.0
Transport and communication3.73.53.33.23.1
Banking2.52.52.42.12.3
Insurance0.50.50.50.50.5
Other services3.73.53.53.73.8
Government59.761.061.662.462.4
Sources: General Bureau of Statistics; and Fund Staff estimates.

Preliminary estimates.

Sources: General Bureau of Statistics; and Fund Staff estimates.

Preliminary estimates.

Table 10.Suriname: Population Data
19971998199920002001 1/
(In thousands)
Natural increase7.97.47.26.76.2
Net migration-1.4-2.6-0.6-2.2-0.6
Population at end of period422.2427.0433.5438.1443.7
(In percent)
Rate of population increase1.61.11.51.11.3
Natural rate of increase1.91.81.71.51.4
Source: General Bureau of Statistics.

Preliminary estimates. Information for 2002 is not available yet.

Source: General Bureau of Statistics.

Preliminary estimates. Information for 2002 is not available yet.

Table 11.Suriname: Central Government Operations(In billions of guilders)
19981999200020012002
Revenue and grants152.8180.6320.1643.9653.8
Revenue126.3160.3297.6616.5623.8
Direct taxes50.558.9147.9289.0232.4
Indirect taxes55.491.7123.9267.3313.9
Nontax revenue20.49.725.960.277.5
Grants26.520.322.527.430.0
Expenditure and net lending196.0253.5462.9590.9811.2
Current expenditure146.8201.5435.4539.4771.8
Wages and salaries73.694.9153.7199.2339.8
Goods and services47.961.1192.4140.2229.5
Subsidies and transfers21.542.582.8151.7144.6
Of which0.00.00.00.00.0
Private sector1.03.510.516.35.6
Public sector0.20.513.124.222.5
Households20.338.559.2111.2116.6
Interest3.83.16.548.257.8
Net lending0.08.60.012.40.0
Capital expenditure49.143.427.539.239.5
Primary balance-39.4-69.8-136.4101.1-99.6
Overall balance-43.2-73.0-142.852.9-157.4
External amortization-0.4-1.9-150.8-159.6-73.4
Gross financing requirement43.674.8293.7106.7230.9
Net domestic borrowings35.144.8171.1-162.9229.2
Domestic commercial banks12.62.741.731.44.1
Central bank20.549.2147.2-215.5196.2
Other domestic private sector0.00.00.00.00.0
Nonidentified financing1.9-7.1-17.821.328.8
Gross external borrowing8.630.1122.5269.61.7
Bilateral agencies0.00.00.00.00.0
Multilateral agencies0.00.00.00.01.7
Foreign commercial banks8.630.1122.5269.60.0
Foreign nonbanks0.00.00.00.00.0
Sources: Ministry of Finance; Central Bank of Suriname; and Fund staff estimates.
Sources: Ministry of Finance; Central Bank of Suriname; and Fund staff estimates.
Table 12.Suriname: Central Government Operations(In percent of GDP)
19981999200020012002
Revenue and grants34.323.727.238.729.3
Revenue28.421.125.337.027.9
Direct taxes11.47.712.617.410.4
Indirect taxes12.512.010.516.114.1
Nontax revenue4.61.32.23.63.5
Grants5.92.71.91.61.3
Expenditures and net lending44.033.339.335.536.3
Current expenditures33.026.537.032.434.5
Wages and salaries16.512.513.112.015.2
Goods and services10.88.016.38.410.3
Subsidies and transfers4.85.67.09.16.5
Of which
Private sector0.20.50.91.00.2
Public sector0.10.11.11.51.0
Households4.65.15.06.75.2
Interest0.90.40.62.92.6
Net lending0.01.10.00.70.0
Capital expenditures11.05.72.32.41.8
Primary balance-8.8-9.2-11.66.1-4.5
Overall balance-9.7-9.6-12.13.2-7.0
External amortization-0.1-0.2-12.8-9.6-3.3
Gross financing requirement9.89.825.06.410.3
Net domestic borrowings7.95.914.5-9.810.3
Domestic commercial banks2.80.43.51.90.2
Central bank4.66.512.5-12.98.8
Other domestic private sector0.00.00.00.00.0
Nonidentified financing0.4-0.9-1.51.31.3
Gross external borrowing1.93.910.416.20.1
Bilateral agencies0.00.00.00.00.0
Multilateral agencies0.00.00.00.00.1
Foreign commercial banks1.93.910.416.20.0
Foreign nonbanks0.00.00.00.00.0
Sources: Ministry of Finance; Central Bank of Suriname; and Fund staff estimates.
Sources: Ministry of Finance; Central Bank of Suriname; and Fund staff estimates.
Table 13.Suriname: Central Government Revenue and Grants(In billions of guilders)
19981999200020012002
Total revenue and grants152.8180.6320.1643.9653.8
Current revenue126.3160.3297.6616.5623.8
Tax revenue106.0150.6171.7556.3546.3
Direct taxes50.558.9147.9289.0232.4
Income taxes46.950.1111.4216.5227.5
Individual income taxes31.833.853.761.2116.4
Wage tax28.429.747.153.5106.2
Self-employed3.34.16.77.710.3
Corporate income taxes15.116.357.7155.3111.0
Bauxite companies9.514.426.880.034.3
Other companies5.72.030.975.376.7
Wealth tax0.10.00.10.202
Dividend tax0.10.40.49.80.8
Rental value tax0.00.00.10.00.3
Property tax0.00.00.00.00.0
Other (net of tax refunds) 1/3.48.435.862.43.5
Casino Tax0.00.00.00.00.0
Indirect taxes55.491.7123.9267.3313.9
Domestic taxes on goods and services19.825.724.797.4115.1
Motor fuel12.410.62.444.255.9
Motor vehicles0.70.30.30.00.0
Sales tax on Domestic goods and services3.610.614.422.725.4
Other Domestic taxes (net of tax refunds)3.14.27.630.433.8
Of which
Tobacco0.91.21.110.510.9
Liquor0.40.72.89.210.9
Beer0.70.62.55.55.7
Lottery0.30.40.65.25.5
Entertainment0.30.40.70.00.9
Soft drinks0.61.00.00.00.0
Taxes on international trade35.165.198.2168.2194.2
Sales tax on imports9.222.027.551.057.6
Customs duty21.634.055.591.1107.2
Statistical fees and Consent rights4.38.614.625.128.7
Statistical fees1.84.17.511.615.1
Consent rights2.54.57.113.513.6
Wood export tax0.00.10.20.60.3
Export and re-export taxes0.00.50.40.40.4
Other taxes0.50.30.91.74.7
Retribution on alumina production0.40.70.61.34.6
Other0.20.10.30.40.1
Nontax and capital revenue20.49.725.960.277.5
Nontax revenue20.49.725.960.277.5
Pension fund contributions0.00.00.00.00.0
Old age fund contributions3.63.65.07.812.8
Central bank profits0.00.00.00.00.0
Administrative-fees, fines, etc.16.86.120.852.464.7
Fees and licenses1.84.07.08.812.9
Payment for government services1.11.42.03.03.5
Income from state enterprises0.20.60.32.13.4
Revenue from government ministries0.00.00.00.00.0
Miscellaneous nontax revenue13.60.111.638.544.9
Grants26.520.322.527.430.0
Sources: Ministry of Finance; Central Bank of Suriname; Embassy of the Netherlands in Suriname; and Fund staff estimates.

Also includes payments of unclassified tax arrears.

Sources: Ministry of Finance; Central Bank of Suriname; Embassy of the Netherlands in Suriname; and Fund staff estimates.

Also includes payments of unclassified tax arrears.

Table 14.Suriname: Central Government Revenue and Grants(In percent of GDP)
19981999200020012002
Total revenue and grants34.323.727.238.729.3
Current revenue28.421.125.337.027.9
Tax revenue23.819.323.133.424.4
Direct taxes11.47.712.617.410.4
Income taxes10.56.69.513.010.2
Individual income taxes7.14.44.63.75.2
Wage tax6.43.94.03.24.8
Self-employed0.80.50.60.50.5
Corporate income taxes3.42.14.99.35.0
Bauxite companies2.11.92.34.81.5
Other companies1.3032.64.53.4
Wealth tax0.00.00.00.00.0
Dividend tax0.00.10.00.60.0
Rental value tax0.00.00.00.00.0
Property tax0.00.00.00.00.0
Other (net of tax refunds) 1/0.81.13.03.80.2
Casino tax0.00.00.00.00.0
Indirect taxes12.512.010.516.114.1
Domestic taxes on goods and services4.43.42.15.95.1
Motor fuel2.81.40.22.72.5
Motor vehicles0.10.00.00.00.0
Sales tax on domestic goods and services0.81.41.21.41.1
Other domestic- taxes (net of tax refunds)0.70.60.61.81.5
Of which
Tobacco0.20.20.10.60.5
Liquor0.10.10.20.60.5
Beer0.20.10.20.30.3
Lottery0.10.10.00.30.2
Entertainment0.10.00.10.00.0
Soft drinks0.10.10.00.00.0
Taxes on international trade7.98.68.310.18.7
Sales tax on imports2.12.92.33.12.6
Customs duty4.94.54.75.54.8
Statistical fees and consent rights1.01.11.21.51.3
Statistical fees0.40.50.60.70.7
Consent rights0.60.60.60.80.6
Wood export tax0.00.00.00.00.0
Export and re-export taxes0.00.10.00.00.0
Other taxes0.10.10.10.10.2
Retribution on alumina production0.10.10.10.10.2
Other0.00.00.00.00.0
Nontax and capital revenue4.61.32.23.63.5
Nontax revenue4.61.32.23.63.5
Pension fund contributions0.00.00.00.00.0
Old Age fund contributions0.80.50.40.50.6
Central bank profits0.00.00.00.00.0
Administrative fees, fines, etc.3.80.81.83.22.9
Fees and licenses0.40.50.60.50.6
Payment for government services0.20.20.20.20.2
Income from state enterprises0.10.10.00.10.2
Revenue from government ministries0.00.00.00.00.0
Miscellaneous nontax revenue3.10.01.02.32.0
Capital revenue0.00.00.00.00.0
Grants5.92.71.91.61.3
Sources: Ministry of Finance; the Central Bank; Embassy of the Netherlands in Suriname; and Fund staff estimates.

In 1999 and 2000 it includes payments of unclassified tax arrears.

Sources: Ministry of Finance; the Central Bank; Embassy of the Netherlands in Suriname; and Fund staff estimates.

In 1999 and 2000 it includes payments of unclassified tax arrears.

Table 15.Suriname: Central Government Expenditure(In billions of guilders)
19981999200020012002
Total expenditure196.0253.5462.9590.9811.2
Current expenditure146.8201.5435.4539.4771.8
Wages and salaries73.694.9153.7199.2339.8
Allowances0.00.00.00.00.0
Payroll73.694.9153.7199.2339.8
Current transfers21.542.582.8151.7144.6
Private sector enterprises1.03.510.516.35.6
Public sector0.20.513.124.222.5
To households20.338.559.2111.2116.6
Of which
Pensions to civil servants6.613.821.839.317.9
Social welfare7.52.95.28.16.7
Interest3.83.16.548.257.8
Domestic0.11.61.512.531.5
External3.71.55.035.726.3
Goods and services47.961.1192.4140.2229.5
Government ministries27.145.592.412.231.6
Other goods and services20.211.998.4117.7181.6
Of which
Extraordinary expenditure0.00.037.90.00.0
Abroad0.73.71.610.216.2
Net lending to public entities 2/0.08.60.012.40.0
Capital expenditures49.143.427.539.239.5
EEC0.02.40.00.00.0
Dutch grants0.017.922.50.00.0
Central government resources0.02.75.011.89.5
Private sector financing and other grants 3/49.120.40.027.430.0
Memorandum item;
Defense expenditure 4/10.613.920.40.00.0
Sources: Ministry of Finance, the Central Bank, Embassy of the Netherlands in Suriname and Fund staff estimates.

Includes in 1996, 1997, and 1998 current grants from the European Union and Holland and the purchase of patrol boats in 1997.

On-lending operations treated as net lending with the offset under external financing.

In 1998 and 1999 includes financing of bridges by a Dutch consortium.

Expenditure of the Ministry of Defense, including wages and salaries, goods and services, utilities, etc.

Sources: Ministry of Finance, the Central Bank, Embassy of the Netherlands in Suriname and Fund staff estimates.

Includes in 1996, 1997, and 1998 current grants from the European Union and Holland and the purchase of patrol boats in 1997.

On-lending operations treated as net lending with the offset under external financing.

In 1998 and 1999 includes financing of bridges by a Dutch consortium.

Expenditure of the Ministry of Defense, including wages and salaries, goods and services, utilities, etc.

Table 16.Suriname: Central Government Expenditure(In percent of GDP)
19981999200020012002
Total expenditure44.033.339.335.536.3
Current expenditure33.026.537.032.434.5
Wages and salaries16.512.513.112.015.2
Allowances0.00.00.00.00.0
Payroll16.512.513.112.015.2
Current transfers4.85.67.09.16.5
Private sector0.20.50.91.00.2
Public sector0.10.11.11.51.0
To households4.65.15.06.75.2
Of which
Pensions to civil servants1.51.81.92.40.8
Social welfare1.70.40.40.50.3
Interest0.90.40.62.92.6
Domestic0.00.20.10.81.4
External0.80.20.42.11.2
Goods and services10.88.016.38.410.3
Government ministries6.16.07.90.71.4
Other goods and services4.51.68.47.18.1
Of which
Extraordinary expenditure0.00.03.20.00.0
Abroad0.20.50.10.60.7
Net lending to public entities 2/0.01.10.00.70.0
Capital expenditure11.05.72.32.41.8
EEC0.00.30.00.00.0
Dutch grants0.02.31.90.00.0
Central government resources0.00.40.40.70.4
Private sector financing and other grants 3/11.02.70.01.61.3
Memorandum item:
Defense expenditure 4/2.41.81.70.00.0
Sources: Ministry of Finance, the Central Bank, Embassy of the Netherlands in Suriname; and Fund staff estimates.

Includes in 1996, 1997, and 1998 current grants from the European Union and Holland and the purchase of patrol boats in 1997.

On-lending operations treated as net lending with the offset under external financing.

In 1998 and 1999 includes financing of bridges by a Dutch consortium.

Expenditure of the Ministry of defense, including wages and salaries, goods and services, utilities, etc.

Sources: Ministry of Finance, the Central Bank, Embassy of the Netherlands in Suriname; and Fund staff estimates.

Includes in 1996, 1997, and 1998 current grants from the European Union and Holland and the purchase of patrol boats in 1997.

On-lending operations treated as net lending with the offset under external financing.

In 1998 and 1999 includes financing of bridges by a Dutch consortium.

Expenditure of the Ministry of defense, including wages and salaries, goods and services, utilities, etc.

Table 17.Suriname: Summary Accounts of the Banking System 1/(In millions of Surinamese guilders)
19981999200020012002
I. Central Bank
Net foreign assets35,80013,78727,500216,754254,636
Net international reserves39,28818,59127,383216,633253,273
Assets 2/127,269122,869252,869385,875255,409
Liabilities 3/-87,981-104,278-225,487-169,241-2,135
Net other foreign assets-3,488-4,8041171211,362
Net domestic assets47,466108,984283,643141,681217,054
Net claims on the public sector34,30383,237231,26012,454208,889
Central government (net)30,25079,454226,68211,161207,368
Assets38,568101,947287,42857,124263,098
Liabilities-8,317-22,493-60,746-45,963-55,730
Rest of the public sector (net)4,0523,7834,5771,2931,522
Claims on commercial banks19,07738,24943,06444,88421,721
Claims on private sector1,4773,7854,23511,8047,194
Claims on other banking institutions218511623719783
Official capital and surplus-13,191-29,404-19,90545,195-41,635
Net unclassified assets5,58212,60624,36726,62620,102
Assets10,75413,14024,06318,73621,117
Liabilities-5,172-5353047,890-1,016
Reserve money83,266122,771311,143358,435471,689
Currency outside cash houses and central bank 4/60,86298,345173,396206,181229,887
Bankers deposits20,56217,701115,805116,085178,816
Other liabilities to the private sector1,8426,72521,94236,16962,987
II. Commercial Banks
Net short term foreign assets34,402100,951210,842275,544306,313
Assets38,675154,546235,147312,164345,275
Liabilities-4,274-53,594-24,305-36,619-38,962
Net other foreign assets-24-24-11,024-11,024-11,000
Net domestic assets139,988184,443345,541509,863733,466
Net claims on the public sector20,64723,05263,50595,04599,243
Central government (net)18,47121,16462,88294,23298,370
Assets18,63821,70663,40795,07198,779
Liabilities-167-542-525-840-409
Rest of the public sector (net)2,1761,888623813873
Credit to the private sector89,523130,490143,568245,246402,296
Monetary reserves and currency holdings30,98134,394138,578139,825204,873
Liabilities to the central bank-19,077-38,249-43,064-44,884-21,721
Net unclassified assets17,91434,75642,95474,63148,775
Assets41,02849,82082,000113,713110,513
Liabilities-23,113-15,064-39,046-39,082-61,738
Liabilities to the private sector174,365285,370545,359774,3831,028,779
Monetary liabilities161,845264,440526,700712,349964,742
Demand deposits39,92951,367111,010175,972279,407
Time, savings, and other deposits87,578108,151160,966178,435205,095
Foreign currency deposits34,338104,923254,724357,943480,239
Other liabilities28211350
Private capital and surplus12,49220,90918,64562,03164,037
III. Banking System
Net foreign assets70,177114,714227,318481,276549,948
Net international reserves39,28818,59127,383216,633253,273
Assets 2/127,269122,869252,869385,875255,409
Liabilities 3/-87,981-104,278-225,487-169,241-2,135
Net other foreign assets30,88996,123199,935264,643296,675
Net domestic assets156,473259,033490,606511,719745,647
Net claims on the public sector54,950106,289294,765107,498308,133
Central government (net)48,722100,618289,564105,393305,738
Assets57,206123,653350,835152,195361,876
Liabilities-8,484-23,035-61,27146,802-56,138
Rest of the public sector (net)6,2285,6715,2012,1062,395
Claims on the private sector90,999134,276147,803257,050409,490
Claims on other financial institutions218511623719783
Net unclassified assets23,49647,36167,321101,25768,877
Assets51,78162,960106,062132,449131,631
Liabilities-28,285-15,599-38,741-31,192-62,754
Official capital and surplus-13,191-29,404-19,90545,195-41,635
Liabilities to the private sector226,650373,747717,924992,9951,295,596
Broad money214,130352,817699,265930,9601,231,558
Money91,600136,029269,424382,219527,634
Currency in circulation 4/50,44381,652150,622182,441203,830
Demand deposits41,15754,377118,802199,778323,804
Gold certificates6143,71614,15012,36418,589
Quasi-money87,578108,151160,966178,435205,095
Foreign currency deposits34,338104,923254,724357,943480,239
Other liabilities28211350
Private capital and surplus12,49220,90918,64562,03164,037
Memorandum item:
Accounting exchange rate 5/4019872,1782,1782,500
Source: Central Bank of Suriname.

As of December 31.

Gold is valued it market prices.

Adjusted for external arrears.

Includes central government issue of coins.

Official central bank rate (end of period).

Source: Central Bank of Suriname.

As of December 31.

Gold is valued it market prices.

Adjusted for external arrears.

Includes central government issue of coins.

Official central bank rate (end of period).

Table 18.Suriname: Banking System Liabilities to the Private Sector 1/
19981999200020012002
(In millions of Surinamese guilders)
Total liabilities226,650373,747717,924992,9951,295,596
Broad money214,130352,817699,265930,9601,231,558
Money91,600136,029269,424382,219527,634
Currency in circulation50,44381,652150,622182,441203,830
Demand deposits41,15754,377118,802199,778323,804
Quasi- money 2/88,192111,866175,117190,798223,685
Foreign currency deposits34,338104,923254,724357,943480,239
Other liabilities28211350
Private capital and surplus12,49220,90918,64562,03164,037
(In percent of Broad money)
Total liabilities105.8105.9102.7106.7105.2
Broad money100.0100.0100.0100.0100.0
Money42.838.638.541.142.8
Currency in circulation23.623.121.519.616.6
Demand deposits19.215.417.021.526.3
Quasi- money 2/41.231.725.020.518.2
Foreign currency deposits16.029.736.438.439.0
Other liabilities0.00.00.00.00.0
Private capital and surplus5.85.92.76.75.2
(In percent of GDP)
Total liabilities50.949.161.059.758.0
Broad money48.146.359.455.955.1
Money20.617.922.923.023.6
Currency in circulation11.310.712.811.09.1
Demand deposits9.27.110.112.014.5
Quasi-money 2/19.814.714.911.510.0
Foreign currency deposits7.713.821.621.521.5
Other liabilities0.00.00.00.00.0
Private capital and surplus2.82.71.63.72.9
Memorandum item:
GDP at market prices445,059761,4821,176,9091,664,3552,234,399
(Annual percentage change)
Total liabilities32.664.992.138.330.5
Broad money34.664.898.233.132.3
Money33.548.598.141.938.0
Currency in circulation56.761.984.521.111.7
Demand deposits13.032.1118.568.262.1
Quasi- money 2/41.826.856.59.017.2
Foreign currency deposits21.2205.6142.840.534.2
Other liabilities-87.5-26.8-36.5-63.6-100.0
Private capital and surplus7.267.4-10.8232.73.2
Source: Central Bank of Suriname.

As of December 31.

Includes time and savings deposits, and gold certificates.

Source: Central Bank of Suriname.

As of December 31.

Includes time and savings deposits, and gold certificates.

Table 19.Suriname: Distribution of Commercial Bank Credit by Destination 1/
19981999200020012002
(In millions of Surinamese guilders)
Total credit outstanding 2/99,797.9130,063.5156,028.6241,662.7288,555.6
Agriculture18,533.128,603.819,921.733,357.619,277.4
Fisheries4,476.25,147.43,154.76,663.86,113.8
Forestry1,694.82,402.71,545.1518.9215.8
Mining3,048.12,122.81,428.2925.8692.5
Manufacturing9,338.89,136.88,894.98,111.69,538.8
Construction2,007.92,613.22,767.73,118.36,242.7
Utilities1,251.41,412.635.2120.40.0
Commerce23,574.730,708.228,918.241,027.355,970.7
Transport and communications4,259.55,345.53,991.74,093.44,081.3
Services4,999.85,676.04,761.87,305.210,485.5
Housing construction11,758.314,490.913,669.222,874.626,658.0
Other14,855.322,403.666,940.2113,545.8149,279.1
(In percent of total)
Agriculture18.622.012.813.86.7
Fisheries4.54.02.02.82.1
Forestry1.71.81.00.20.1
Mining3.11.60.90.40.2
Manufacturing9.47.05.73.43.3
Construction2.02.01.81.32.2
Utilities1.31.10.00.00.0
Commerce23.623.618.517.019.4
Transport and communications4.34.12.61.71.4
Services5.04.43.13.03.6
Housing construction11.811.18.89.59.2
Other14.917.242.947.051.7
Source: Central Bank of Suriname.

As of December 31.

Figures for total credit outstanding include investments of the commercial banks.

Source: Central Bank of Suriname.

As of December 31.

Figures for total credit outstanding include investments of the commercial banks.

Table 20.Suriname: Loans and Deposits by Interest Rates 1/ 2/(December 31)
199719981999200020012002
(In millions of Surinamese guilders)
Lending rate
Up to 548.1464.5758.5360.9542.87,621.2
5-102.93,195.36,901.77,215.99,144.218,218.8
10-1514,931.423,760.227,227.916,290.622,983.528,159.6
15-20495.66,010.16,230.46,627.514,763.320,353.8
20-253,497.83,995.66,435.49,636.559,553.995,316.2
25-3021,162.433,245.84,615.45,714.038,557.550,683.7
30-3513,953.812,743.224,357.623,827.911,897.411,098.1
35-406,528.93,453.636,267.937,769.611,889.11,788.5
40-457,230.18,436.912,131.36,030.15,371.6322.3
45-503,425.11,919.12,957.3825.0165.3105.0
Over 501,469.73,010.12,650.33,239.6680.14,004.5
Total72,745.8100,234.4130,533.7117,537.6175,548.7237,671.7
Deposit rate
0-5128.3263.1299.2191.5377.715,101.4
5-106,226.18,275.93,206.11,966.090,519.4164,722.4
10-1537,543.547,440.568,042.1108,553.268,924.919,842.4
15-2012,633.518,611.617,022.926,194.110,619.56,740.2
20-259,824.111,690.413,135.914,517.63,876.41,607.9
25-303,198.83,516.16,876.511,921.35,939.52,183.4
30-352,571.01,780.92,501.01,425.41,023.0867.1
35-402,518.31,249.6979.070.43.40.0
40-45509.6486.1385.415.20.00.0
45-50113.541.540.50.00.00.0
Over 500.00.00.00.00.00.0
Total75,266.793,355.7112,488.6164,854.7181,283.8211,064.8
(As percentage of total)
Lending rate
Up to 50.10.50.60.30.33.2
5-100.03.25.36.15.27.7
10-1520.523.720.913.913.111.8
15-200.76.04.85.68.48.6
20-254.84.04.98.233.940.1
25-3029.133.23.54.922.021.3
30-3519.212.718.720.36.84.7
35-409.03.427.832.16.80.8
40-459.9849.35.13.10.1
45-504.71.92.30.70.10.0
Over 502.03.02.02.80.41.7
Deposit rate
0-50.20.30.30.10.27.2
5-108.3892.91.249.978.0
10-1549.950.860.565.838.09.4
15-2016.819.915.115.95.93.2
20-2513.112.511.78.82.10.8
25-304.23.86.17.23.31.0
30-353.41.92.20.90.60.4
35-403.31.30.90.00.00.0
40-450.70.50.30.00.00.0
45-500.20.00.00.00.00.0
Over 500.00.00.00.00.00.0
Memorandum item:
CPI, percent change, (end of period)18.322.9112.880.44.928.4
Source: Central Bank of Suriname.

Rates are in percent per annum.

Includes demand deposits.

Source: Central Bank of Suriname.

Rates are in percent per annum.

Includes demand deposits.

Table 21.Suriname: Summary Balance of Payments 1/(In millions of U.S. dollars)
1998199920002001Prel.

2002
Current Account-158.5-168.2-83.1-158.0-102.4
Trade balance 1/-49.4-29.513.315.352.6
Exports, f.o.b.510.3482.5513.9449.0529.4
Imports, f.o.b.-559.7-512.1-500.6-433.7-476.8
Services, net-124.9-95.4-115.0-115.3-127.6
Exports72.079.191.059.438.5
Imports-196.9-174.5-206.0-174.7-166.1
Travel, net-8.9-3.6-7.1-15.0-6.5
Transportation, net-47.9-44.0-43.7-44.9-49.1
Government, net-17.9-8.8-33.0-7.2-10.4
Insurance, net-2.30.00.0-2.1-2.0
Other services, net-50.2-39.0-31.2-46.1-59.6
Income, net-9.6-63.9-1.5-80.0-43.6
Private sector-0.5-57.96.0-67.6-32.8
Public sector-9.1-6.0-7.5-12.4-10.8
Of which: NFPS interest-9.1-6.0-7.5-12.4-10.8
Current transfers, net 2/25.420.620.122.016.2
Capital and Financial Account77.496.945.7184.174.7
Capital account (public sector grants) 3/25.822.517.312.622.3
Financial account51.674.428.4171.552.4
Public sector61.227.8-15.980.7-29.6
Nonfinancial public sector61.227.8-15.980.7-29.6
Disbursements66.135.093.8123.80.8
Amortization-4.9-7.2-109.7-43.1-30.4
Monetary authorities0.00.00.00.00.0
Private sector-7.420.419.750.158.1
Direct investment9.124.014.011.414.8
Portfolio investment0.00.00.00.00.0
Loans-16.5-3.65.738.743.3
Short-term flows-2.226.224.640.723.9
Errors and omissions48.2-4.036.060.830.0
Overall balance-17.275.31.3-86.9-2.3
Financing-17.275.31.3-86.9-2.3
NFA of the central bank (-) increase-17.275.31.3-86.9-2.3
Net use of Fund credit0.00.00.00.00.0
Memorandum items:
Current account as percent of GDP-14.3-19.0-9.4-20.7-10.3
Stock NFA central bank89.314.012.699.5101.9
NFA in months of M G&S1.40.20.22.01.9
Source: Surinamese authorities; and Fund staff estimates.

Adjusts the cash-based transactions of the Central Bank, with information from the Bureau of Statistics, and estimates of unrecorded gold exports.

Remittances, estimated at a conservative 2.5 percent of GDP are removed from net errors and omissions.

Consists principally of project and program assistance from The Netherlands and grants from the European Development Fund and Belgium.

Source: Surinamese authorities; and Fund staff estimates.

Adjusts the cash-based transactions of the Central Bank, with information from the Bureau of Statistics, and estimates of unrecorded gold exports.

Remittances, estimated at a conservative 2.5 percent of GDP are removed from net errors and omissions.

Consists principally of project and program assistance from The Netherlands and grants from the European Development Fund and Belgium.

Table 22.Suriname: Summary Balance of Payments 1/(In percentage of GDP)
Prel
19981999200020012002
Current account-14.3-19.0-9.4-20.7-10.3
Trade balance 1/-4.5-3.31.52.05.3
Exports, f.o.b.46.054.557.958.853.5
Imports, f.o.b.-50.4-57.8-56.4-56.8-48.2
Services, net-11.3-10.8-13.0-15.1-12.9
Exports6.58.910.37.83.9
Imports-17.7-19.7-23.2-22.9-16.8
Travel, net-0.8-0.4-0.8-2.0-0.7
Transportation, net-4.3-5.0-4.9-5.9-5.0
Government, net-1.6-1.0-3.7-0.9-1.1
Insurance, net-0.20.00.0-0.3-0.2
Other services, net-4.5-4.4-3.5-6.0-6.0
Income, net-0.9-7.2-0.2-10.5-4.4
Private sector0.0-6.50.7-8.8-3.3
Public sector-0.8-0.7-0.8-1.6-1.1
Of which: NFPS interest-0.8-0.7-0.8-1.6-1.1
Current transfers, net 2/2.32.32.32.91.6
Capital and Financial Account7.010.95.124.17.5
Capital account (public sector grants) 3/2.32.51.91.62.3
Financial account4.68.43.222.45.3
Public sector5.53.1-1.810.6-3.0
Nonfinancial public sector5.53.1-1.810.6-3.0
Disbursements6.04.010.616.20.1
Amortization-0.4-0.8-12.4-5.6-3.1
Monetary authorities0.00.00.00.00.0
Private sector-0.72.32.26.65.9
Direct investment0.82.71.61.51.5
Portfolio investment0.00.00.00.00.0
Loans-1.5-0.40.65.14.4
Short-term flows-0.23.02.85.32.4
Errors and Omissions4.3-0.54.18.03.0
Overall Balance-1.58.50.2-11.4-0.2
Financing-1.58.50.2-11.4-0.2
NFA of the central bank (-) increase-1.58.50.2-11.4-0.2
Memorandum items:
Nominal GDP (in millions of U.S. dollars)1,109.9885.4887.6764.2989.3
Stock NFA central bank8.01.61.413.010.3
Source: Surinamese authorities; and Fund staff estimates.

Adjusts the cash-based transactions of the Central bank, with information from the Bureau of Statistics, and estimates of unrecorded gold exports.

Remittances, estimated at a conservative 2.5 percent of GDP are removed from net errors and omissions.

Consists principally of project and program assistance from The Netherlands and grants from the European Development Fund and Belgium.

Source: Surinamese authorities; and Fund staff estimates.

Adjusts the cash-based transactions of the Central bank, with information from the Bureau of Statistics, and estimates of unrecorded gold exports.

Remittances, estimated at a conservative 2.5 percent of GDP are removed from net errors and omissions.

Consists principally of project and program assistance from The Netherlands and grants from the European Development Fund and Belgium.

Table 23.Suriname: International Reserves 1/
19981999200020012002
(In millions of Surinamese guilders)
Net official international reserves39,28818,59127,383216,633253,273
Assets127,269122,869252,869385,875255,409
Gold 2/71,11469,410140,280149,17915,412
Foreign reserves56,15553,460112,589236,696239,997
Liabilities-87,981404,278-225,487-169,241-2,135
Net short-term foreign assets of commercial banks34,402100,951210,842275,546306,313
Assets38,675154,546235,147312,164345,275
Liabilities-4,274-53,594-24,305-36,619-38,962
(In millions of U.S. dollars)
Net official international reserves98.018.812.699.5101.3
Assets317.4124.5116.1177.2102.2
Gold 2/177.370.364.468.56.2
Foreign reserves140.054.251.7108.796.0
Liabilities-219.4-105.7-103.5-77.7-0.9
Net short-term foreign assets of commercial banks85.8102.396.8126.5122.5
Assets96.4156.6108.0143.3138.1
Liabilities-10.7-54.3-11.2-16.8-15.6
Memorandum item:
Accounting exchange rate (Sf/US$) 3/401.0987.02,178.02,178.02,500.0
Source: Central Bank of Suriname.

At December 31.

Gold holdings are valued at market prices.

Official rate (end of period).

Source: Central Bank of Suriname.

At December 31.

Gold holdings are valued at market prices.

Official rate (end of period).

Table 24.Suriname: Exports by Major Categories
19981999200020012002
(In millions of U.S. dollars)
Total major exports406.4399.8425.0404.6401.5
Bauxite derivatives335.8305.2341.9330.3289.9
Alumina298.1296.9341.9330.3289.9
Aluminum37.78.30.00.00.0
Rice19.513.211.211.014.2
Shrimp and Fish31.737.241.439.750.6
Lumber3.82.42.94.24.3
Crude oil15.641.827.719.442.5
(In percent of total major exports)
Total major exports100.0100.0100.0100.0100.0
Alumina73.374.380.481.672.2
Aluminum9.32.10.00.00.0
Rice4.83.32.62.73.5
Shrimp and fish7.89.39.79.812.6
Lumber0.90.60.71.01.1
Crude oil3.810.46.54.810.6
Sources: Central Bank of Suriname; and General Bureau of Statistics.
Sources: Central Bank of Suriname; and General Bureau of Statistics.
Table 25.Suriname: Value, Volume, and Unit Value of Principal Exports(Unless otherwise indicated, value in millions of U.S. dollars, volume in thousands of metric tons, and unit value in U.S. dollar per metric ton)
19981999200020012002
Alumina
Value298.1296.9341.9330.3289.9
Volume1,732.91,857.71,869.31,909.31,886.3
Unit value172.0159.8182.9173.0153.7
Aluminum
Value37.78.30.00.00.0
Volume26.86.80.00.00.0
Unit value1404.41223.00.00.00.0
Rice
Value19.513.211.211.014.2
Volume65.677.847.852.571.8
Unit value297.6169.7233.5209.0197.4
Shrimp and fish
Value31.737.241.439.750.6
Volume12.914.516.517.217.7
Unit value2458.22570.42501.52311.72860.7
Lumber
Value3.82.42.94.24.3
Volume30.714.18.218.218.2
Unit value125.1169.6352.4232.2235.9
Crude oil
Value15.641.827.719.442.5
Volume 1/2684.02602.01350.01076.82156.1
Unit value 2/5.816.020.518.019.7
Total major exports406.4399.8425.0404.6401.5
Memorandum item:
Alumina and aluminum exports as percent of total major exports82.676.380.481.672.2
Sources: Central Bank of Suriname; Bauxite Institute; and Fund staff estimates.

Thousand barrels.

U.S. dollars per barrel.

Sources: Central Bank of Suriname; Bauxite Institute; and Fund staff estimates.

Thousand barrels.

U.S. dollars per barrel.

Table 26.Suriname: Exports by Economic Use 1/
19981999200020012002
(Value in millions of U.S. dollars)
Total2/510.3482.5513.9449.0529.4
Food and live animals63.163.967.463.169.9
Beverages and tobacco7.65.15.45.36.3
Crude materials, except fuels302.8291.1322.6242.9313.1
Mineral fuels including lubricants25.646.834.430.237.2
Animal and vegetable oils and fats0.60.31.21.41.0
Chemicals0.61.34.61.92.3
Manufactured goods40.210.43.13.615.1
Machinery and transport equipment9.511.913.38.611.7
Other 3/60.351.761.992.072.9
(In percent of total)
Total 2/100.0100.0100.0100.0100.0
Food and live animals12.413.213.114.113.2
Beverages and tobacco1.51.11.11.21.2
Crude materials, except fuels59.360.362.854.159.1
Mineral fuels including lubricants5.09.76.76.77.0
Animal and vegetable oils and fats0.10.10.20.30.2
Chemicals0.10.30.90.40.4
Manufactured goods7.92.20.60.82.9
Machinery and transport equipment1.92.52.61.92.2
Other11.810.712.020.513.8
Source: General Bureau of Statistics.

Standard International Trade Classification (SITC).

Details for 2002 not yet available. Estimates based on the composition average for the last four years.

Source: General Bureau of Statistics.

Standard International Trade Classification (SITC).

Details for 2002 not yet available. Estimates based on the composition average for the last four years.

Table 27.Suriname: Destination of Exports
19981999200020012002
(Value in millions of U.S. dollars)
Total exports1/510.3482.5513.9449.0529.4
Norway97.696897.890.0103.6
United States93.2100.9101.4106.6109.4
The Netherlands104.670.569.734.474.6
France39.445.945.240.146.3
Canada53.344.040.336.344.2
United Kingdom0.00.00.00.00.0
Japan18.520.521.019.021.4
French Guinea, Guadeloupe, Martinique, and Netherlands Antilles6.67.94.81.15.4
Other countries97.096.1133.8121.5124.6
(In percent of total)
Total exports 1/100100100100100
Norway19.120.119.020.019.6
United States18.320.919.723.720.7
The Netherlands20.514.613.67.714.1
France7.79.58.88.98.7
Canada9.17.88.18.3
United Kingdom0.00.00.00.00.0
Japan3.64.24.14.24.0
French Guiana, Guadeloupe, Martinique, and Netherlands Antilles1.31.60.90.31.0
Other countries19.019.926.027.123.5
Source: General Bureau of Statistics.

Details for 2002 not yet available. Estimates based on the composition average for the last four years, as GBS records were not available.

Source: General Bureau of Statistics.

Details for 2002 not yet available. Estimates based on the composition average for the last four years, as GBS records were not available.

Table 28A.Suriname: Imports by Economic Use 1/ 2/
19981999200020012002
(Value in millions of U.S. dollars)
Total 3/589.2539.0526.9456.5501.9
Food and live animals62.357.470.460.760.1
Beverages and tobacco14.013.516.212.013.3
Crude materials, except fuels5.77.27.56.06.3
Mineral fuels including lubricants60.243.030.572.149.9
Animal and vegetable oils and fats10.011.16.95.88.0
Chemicals83.561.755.640.856.6
Manufactured goods100.397.091.568.984.7
Machinery and transport equipment191.8190.9191.0141.4169.6
Other 3/61.457.257.348.853.4
(In percent of total)
Total 3/100.0100.0100.0100.0100.0
Food and live animals10.610.613.413.312.0
Beverages and tobacco2.42.53.12.62.6
Crude materials, except fuels1.01.31.41.31.3
Mineral fuels including lubricants10.28.05.815.89.9
Animal and vegetable oils and fats1.72.11.31.31.6
Chemicals14.211.410.68.911.3
Manufactured goods17.018.017.415.116.9
Machinery and transport equipment32.635.436.231.033.8
Other10.410.610.910.710.6
Source: General Bureau of Statistics.

SITC (on a c.i.f. basis).

Details for 2002 not yet available. Estimates based on the composition average for the last four years.

Excludes re-exports.

Source: General Bureau of Statistics.

SITC (on a c.i.f. basis).

Details for 2002 not yet available. Estimates based on the composition average for the last four years.

Excludes re-exports.

Table 28B.Suriname: Origin of Imports
19981999200020012002
(In millions of U.S. dollars)
Total imports 1/559.7512.1500.6433.7476.8
United States232.0169.3138.4118.0154.2
The Netherlands141.4119.5120.5103.2115.0
Trinidad and Tobago57.556.290.476.868.0
Japan30.756.741.027.237.0
Netherlands Antilles32.322.19.240.525.3
Panama5.27.113.55.07.3
Brazil9.56.08.87.47.5
Belgium7.810.612.85.18.6
China8.810.914.218.713.0
United Kingdom7.413.25.73.87.1
Italy0.05.76.20.02.8
Canada5.36.59.03.65.8
Other countries21.928.230.524.425.2
(In percent of total)
Total imports 1/100.0100.0100.0100.0100.0
United States41.433.127.727.232.3
The Netherlands25.323.324.123.824.1
Trinidad and Tobago10.311.018.117.714.3
Japan5.511.18.26.37.8
Netherlands Antilles5.84.31.89.35.3
Panama0.91.42.71.11.5
Brazil1.71.21.81.71.6
Belgium1.42.12.61.21.8
China1.62.12.84.32.7
United Kingdom1.32.61.10.91.5
Italy0.01.11.20.00.6
Canada1.01.31.80.81.2
Other Countries3.95.56.15.65.3
Source: General Bureau of Statistics.

Details for 2002 not yet available. Estimates based on the composition average for the last four years.

Source: General Bureau of Statistics.

Details for 2002 not yet available. Estimates based on the composition average for the last four years.

Table 29.Suriname: External Grants Received(In millions of U.S. dollars)
19981999200020012002
Total25.822.517.312.622.3
The Netherlands19.819.916.912.618.4
Project assistance19.819.916.912.618.4
European Development Fund4.02.60.40.03.8
Belgium and UNDP2.00.00.00.00.1
Sources: The Netherlands Embassy; the European Commission, and the Ministry of Planning of Suriname.
Sources: The Netherlands Embassy; the European Commission, and the Ministry of Planning of Suriname.
Table 30.Suriname: Public and Publicly-Guaranteed External Debt Outstanding 1/(In millions of U.S. dollars, December 31)
19981999200020012002
Total external debt 1/212.0257.9239.5316.9314.6
Long-term debt152.0193.0197.7298.9296.6
Short-term debt60.065.041.818.018.0
Multilateral27.255.047.439.138.6
Central government13.341.433.730.430.4
Long term13.331.431.830.430.4
IDB, Minov-1732.22.02.01.61.4
Inter-American Development Bank, Minov-7810.70.60.60.60.6
Inter-American Development Bank, NOB-1991.20.90.40.00.0
Inter-American Development Bank, NIC-5336.26.26.25.65.1
Inter-American Development Bank, NIC-8091.01.01.01.01.0
Inter-American Development Bank, HTF11580.00.20.218.018.0
Inter-American Development Bank, Agriculture0.018.018.00.30.3
Inter-American Development Bank, Decentralization0.00.30.30.71.0
Inter-American Development Bank, cdfs 12460.00.00.00.00.5
EIB/NOB(GLOB.LOAN-80102)2.02.02.01.41.4
EIB/(Road Jenny-Ingikondre) ′940.00.00.00.50.5
Islamic Development Bank0.00.00.70.70.7
Italy/IFAD0.00.00.00.00.0
Short term0.010.02.30.00.0
Islamic Development Bank0.010.02.30.00.0
Government guaranteed13.813.713.78.78.2
Long term13.813.713.78.78.2
EIB/EOF-LANDBB.800822.02.02.01.41.3
EIB/EOF-LANDBB.801798.38.38.36.05.8
EIB/NOB GL. II- 708030.70.70.71.31.1
EIB/NOB>GL. I0.10.00.00.00.0
EIB/NOB>GL. II2.82.82.80.00.0
Bilateral116.6116.6116.3116.1114.2
Central government116.6116.6116.3116.1114.2
Long term98.698.698.398.196.2
United States, PL-480, 19925.65.65.65.65.2
United States, PI.-480, 19932.02.02.02.01.9
United States, PL-480, 1994, no 14.94.94.94.94.2
United States, PL-480, 1994, no 20.40.40.40.40.3
United States, PL-480, 19955.05.05.05.04.4
United States, PL-480, 19961.81.81.81.81.6
Brazil - IRB5.35.35.35.35.3
Brazil II27.027.027.027.027.0
Brazil III31.831.831.831.831.8
China/Sporthal7.07.07.07.07.0
China/Tech. Samenwerking2.92.92.92.92.9
China/CL-RMY202.42.42.42.42.4
China/CL-RMY151.81.81.81.81.8
India Credit line 19920.60.60.30.10.1
Short term18.018.018.018.018.0
GSM/United States18.018.018.013.018.0
From private Institutions68.386.375.8161.7161.9
Long term26.349.384.2161.7161.9
Banco Exterior De Espana14.715.914.511.79.7
Banco Santander SA8.219.819.812.19.2
Japan/MITI3.42.82.83.23.3
Ballast Nedam Theta0.010.817.212.86.9
National Development Bank of the Netherlands (NIO)0.00.00.0121.9108.1
China/Dalian0.00.00.00.024.7
Short term42.037.021.60.00.0
International Bank of Miami17.017.00.00.00.0
Hamilton Bank25.020.00.00.00.0
China/SunnyPoint (phase 1)0.00.00.00.00.0
China/Sunny Point (phase 2)0.00.00.00.00.0
Japan/Nissho Iwai0.00.00.00.00.0
Standard Bank of London0.00.021.60.00.0
Total interest arrears 2/0.05.87.05.25.2
Multilateral debt0.00.10.20.00.0
EIB0.00.10.20.00.0
Bilateral debt0.05.25.25.25.2
Brazil0.04.64.64.64.6
PL/480/United States0.00.60.60.60.6
MITI/Japan0.00.00.00.00.0
Private debt0.00.51.60.00.0
Santander/Spain0.00.00.80.00.0
Argentaria/Spain0.00.50.80.00.0
Total external debt (including interest arrears)212.1263.8246.6321.1319.8
Memorandum items:
Debt as percentage of GDP (excluding interest arrears)19.129.227.137.630.4
Debt ax percentage of GDP (including interest arrears)19.129.927.938.230.9
GDP in millions of U.S dollars1,108.1882.4884.0842.21,035.6
Sources: Ministry of Finance, Central Bank and Fund staff estimates.

Data on external debt owned by the private sector are not available. Outstanding stock of debt includes arrears on principal.

Excludes the capitalization of interest on these arrears

Sources: Ministry of Finance, Central Bank and Fund staff estimates.

Data on external debt owned by the private sector are not available. Outstanding stock of debt includes arrears on principal.

Excludes the capitalization of interest on these arrears

Table 31.Suriname: Public and Publicly Guaranteed External Debt: Principal and Interest in Arrears 1/(In millions of U.S. dollars, December 31)
19981999200020012002
PrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotal
Total arrears18.000.0018.0028.915.8034.7131.537.0038.5327.315.2032.5126.7452031.94
Central government17.970.0017.9728.195.7033.8930.806.8037.6027.315.2032.5126.745.2031.94
Brazil0.000.000.007.514.6012.117.514.6012.117.514.6012.117.514.6012.11
PL/480-US0.000.000.001.260.601.861.260.601.861.260.601.861.260.601.86
MITI/Japan0.000.000.000.390.000.390.570.000.570.570.000.570.000.000.00
Argentaria/Spain0.000.000.000.000.500.501.610.802.410.000.000.000.000.000.00
Santander/Spain0.000.000.001.060.001.061.880.802.680.000.000.000.000.000.00
GSM/USA17.970.0017.9717.970.0017.9717.970.0017.9717.970.0017.9717.970.0017.97
Public enterprises0.030.000.030.720.100.820.730.200.930.000.000.000.000.000.00
EIB\EU0.030.000.030.720.100.820.730.200.930.000.000.000.000.000.00
Sources: Ministry of Finance; and Fund staff estimates.

Excludes interest capitalization in both interest arrears and principal arrears.

Sources: Ministry of Finance; and Fund staff estimates.

Excludes interest capitalization in both interest arrears and principal arrears.

Table 32.Suriname: Average Exchange Rates
Surinamese guilders per U.S. dollarIndices (1990 = 100) 1/
Official rateParallel rate 2/Nominal EffectiveReal Effective
1995
Quarter I419.38526.54.51105.48
Quarter II472.32596.63.91113.74
Quarter III461.73460.24.26135.20
Quarter IV412.15411.54.79138.15
1996
Quarter I400.4408.74.98140.48
Quarter II402.0422.35.00138.02
Quarter III401.7417.84.99141.72
Quarter IV401.0411.05.05142.25
1997
Quarter I401.0420.05.21147.54
Quarter II401.0426.05.26548.15
Quarter III401.0453.85.29155.38
Quarter IV401.0442.85.31167.60
1998
Quarter I401.0454.75.41172.36
Quarter II401.0481.55.34178.39
Quarter III401.0572.25.11176.96
Quarter IV401.0713.45.36201.26
1999
Quarter I743.7888.63.02140.81
Quarter II795.21,296.02.89186.35
Quarter III913.21,434.32.53192.88
Quarter IV987.51,386.12.33186.74
2000
Quarter I997.51,386.42.34193.57
Quarter II1,005.01,681.12.38217.06
Quarter III1,124.22,199.82.16226.26
Quarter IV2,178.52,498.71.14153.65
2001
Quarter I2,178.52,315.81.13163.68
Quarter II2,178.52,235.11.16168.41
Quarter III2,178.52,212.01.16166.18
Quarter IV2,178.52,217.01.17164.94
2002
Quarter I2,178.52,339.61.17170.01
Quarter II2,178.52,635.91.15178.74
Quarter III2,515.03,106.80.98166.95
Quarter IV2,515.03,000.00.98173.22
Sources: Central Bank of Suriname; and IMF Information Notice System.

An increase in the index indicates appreciation of the Suriname guilder.

Quotations from a limited survey of currency traders.

Sources: Central Bank of Suriname; and IMF Information Notice System.

An increase in the index indicates appreciation of the Suriname guilder.

Quotations from a limited survey of currency traders.

1

Prepared by T. Alleyne, J. Prat, and A. Simone.

2

The main civil service union argues that the increase would be somewhat less if the comparison was made on the basis of gross wages, It claims that if a 1998 tax subsidy by the government were included in the calculation, it would imply a lower percentage increase, While this may be true, this subsidy by the government has never appeared in the government accounts nor is it reflected in any official salary quotes of the workers.

3

However, the government refused to bring the directors and deputy directors back into the salary scale and also removed top ranking military, police, and firemen.

1

Prepared by A. Simone.

2

The available information on some banks is based on unaudited reports submitted to the Supervision Department of the Central Bank of Suriname limiting severely its reliability and accuracy. A more definitive assessment will have to await a full audit of those banks and the full implementation of the new banking supervision regulations described in Section E.

3

The banks own six finance companies that are consolidated in their accounts.

4

Deposits of SPSB are insured by the government of Suriname.

5

Although nonbank financial institutions (NBFI) are subject to reporting requirements, financial information on them is limited. Reporting of NBFI to the supervision department of the central bank has been irregular and largely based on unaudited balance sheets, limiting the reliability of the information. The exceptions are the insurance companies, which report on the basis of audited balance sheets.

6

Total financial system assets are equal to the total value of assets of the banking system plus the total value of assets of the reporting NBFI, unless otherwise stated.

7

The size of NBFI may be underestimated since not all of them reported to the central bank in 2000. Nevertheless, the nonreporting institutions that year were largely negligible in size and would not alter significantly the numbers.

8

If a correction were made for the overestimation of income in the profit and loss statement (which may include interest on loans with more than three months arrears that were not considered to be nonperforming) the net worth and the return on assets would be even lower.

9

Hakrinbank is an example of this alternative.

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