February 22, 2022
- $85 MILLION SUPPORT PACKAGE COMPRISES THREE INVESTMENT LOANS FOR CRITICAL SECTORS
- PROJECTS WILL ADDRESS KEY SOCIAL CHALLENGES AND AIM TO DIRECTLY IMPROVE CITIZENS’ QUALITY OF LIFE
The Inter-American Development Bank (IDB) approved an $85 million package of investment loans to support Suriname’s efforts to address pandemic-era macroeconomic challenges. The package is aligned with Suriname’s economic recovery plan, as well as its multiannual development plan and its IMF program.
This package will improve education, water and sanitation and the social safety net for vulnerable citizens. The education program seeks to improve the quality of education in by enhancing teaching practices and by expanding access to schools for children in remote areas. The 2018 national exam results showed that only 28 percent of students had satisfactory grades in math and only 56 percent in language.
The water and sanitation program aims to improve the efficiency, quality and sustainability of water services provided by the Suriname Water Company (SVM). Suriname’s water supply system is operating under constant challenges including old pipes, in sufficient maintenance and increased demand for water due to population growth.
The social safety net program aims to support vulnerable groups amid Suriname’s socio-economic crisis and strengthen the efficiency and transparency of the country’s social safety net. An online socioeconomic survey of 1,866 households conducted by the IDB in April 2020, showed that 47.6 percent of Surinamese households experienced loss of income due to business closures and loss of employment.
Supporting vulnerable populations is one of the IDB Group’s objectives in its Vision 2025, a roadmap to achieve inclusive growth in Latin America and the Caribbean.
The IDB loans totalling $85 million have grace periods between five and six years and interest rates between 1 to 1.5 percent.