Suriname warned

The International Monetary Fund (IMF) has warned Suriname about the country’s heavy reliance on commodity exports. The international lending agency says while it welcomes the country’s strong growth, supported by “sound policies and buoyant commodity prices,” the practice has exposed fiscal and external vulnerabilities. “Directors stressed the need to build up buffers, promote fiscal sustainability, strengthen the financial sector, and enhance competitiveness,” said the Washington-based financial institution after concluding the 2013 Article IV Consultation with Surinamese authorities.“Adjustment efforts should aim to streamline expenditure on goods and services, moderate public wages, improve the targeting of subsidies, and prioritize capital projects,” said IMF officials. “It will also be important to ensure that the planned social security scheme is fiscally sustainable.”IMF directors commended the authorities’ plans to strengthen the fiscal framework, stating that the public financial management law, when completed, would provide a “sound basis for a fiscal anchor and medium-term expenditure ceilings.”

Courtesy: www.cananewsonline.com