PARAMARIBO, Suriname, (CMC) – The Governor of the Central Bank of Suriname (CBvS), Maurice Roemer, says whichever government emerges from the May 25 general election here, the first priority should be to structurally link economic policy to a new International Monetary Fund (IMF) programme.

In 2021, the IMF executive board approved Suriname’s Extended Fund Facility (EFF) US$572 million arrangement with the country pursuing an ambitious economic reform agenda with the objective of restoring macroeconomic stability and debt sustainability, while laying the foundations for strong and more inclusive growth.

The programme, which ended earlier this year, focused on restoring fiscal and debt sustainability, protecting the poor and vulnerable, upgrading the monetary and exchange rate policy framework, addressing banking sector vulnerabilities, and advancing the anti-corruption and governance reform agenda.

At the end of the programme, Kenji Okamura, the IMF deputy managing director and acting chair, said “the authorities should persevere with their ambitious structural reform agenda to strengthen institutions, address governance weaknesses, build climate resilience, improve data quality and address gender gaps.

“This important work will continue to be supported by capacity development from the fund and other development partners,” Okamura said.

In an interview with the Suriname-based online publication, Starnieuws, the CBvS governor said that despite the IMF programme being a success, Suriname is still far from where it should be.

“On the contrary, there is still a long road ahead of us,” Roemer said, fearing that the economy of the Dutch-speaking Caribbean Community (Caricom) country, will end up in a deep crisis again if no new programme is agreed with the IMF, even with the expected revenues from future oil production.

“Suriname has never developed a culture in which economic policy is built and implemented in a model-based manner,” says Roemer, adding that that’s why he advocates that whichever government takes office after the elections of May 25, one of the first policy measures should be to structurally link economic policy to a new IMF programme.

Roemer says the IMF offers various options, including reform programmes that are not only aimed at financial support, but also facilitate and co-finance reforms.

The central bank governor said that efficient management of the economy must become a norm – both at the central bank and within the government.

“We are still at the foot of the mountain. For us, this is a new process. We need a party that makes this model-based thinking a norm, so that the norm becomes a culture. We are not there yet.

“If we stop now, without clear standards and objectives, we run the risk that policy will be based on gut feelings and personal convictions, instead of economic logic,” Roemer told Starnieuws in the interview.

He said that this is not just about the IMF, but also about the political will to implement model-based policy and thus anchor a financial and monetary conscience in the country.

Roemer said that the same model-based approach is also possible with other international organisations that focus on production and the real economy.

“That is precisely where things have often gone wrong in the past. Policy was too often based on personal insights,” he said, adding that the CBvS has already initiated a drastic change of course.

“We no longer make market interventions based on the wishes of a governor, director or politician. That is no longer possible. Decisions must be based on rules and models,” Roemer added.

He said in the fiscal area too, such as taxes and the State’s balance of payments, clear criteria must be used that enforce normative behaviour and align the administration with it.

In addition to this model-based approach that needs to be elevated to the norm, Roemer said much work still needs to be done to be able to cope with other influences in the economy.

“We need to work towards an institutional framework with clear, model-based goals. We have never done this before, so it takes time and discipline to learn to think that way. For us at the central bank, that means working with a clear roadmap,” Roemer said, pointing out that similar IMF programmes have already proven successful in countries such as Guyana, Barbados and Haiti.