SURINAME-President denies securing loan from Bank of America.

PARAMARIBO, Suriname, CMC – President Jennifer Simons says Suriname did not secure a loan from Bank of America during her recent working visit to London and that her discussions with the financial institution were intended solely to build a strategic partnership.

“We did not borrow money. What we did do was strengthen ties. We made agreements regarding support in terms of expertise and advice,” she told a news conference, adding that the discussions were also aimed at bringing international financial expertise to Suriname in anticipation of expected oil revenues.

President Simons told reporters that there is significant international interest in Suriname, and the Dutch-speaking Caribbean Community (CARICOM) country must prepare promptly for the economic developments brought about by the oil and gas sector.

According to Simons, the meeting took place in London because the international chief of Bank of America was there and had invited her for consultations.

She said that the parties discussed several issues, including the further development of the Surinamese financial system and how international expertise can be utilized in this process.

The head of state said that Suriname must prepare for the arrival of large capital flows from oil and gas developments, and that this calls for a modern, stable financial system capable of withstanding international risks and economic fluctuations.

“We must align our banking legislation and our financial system with a period in which a lot of capital will flow into the country. As a country, we must protect ourselves and ensure a solid financial system,” said Simons, who was accompanied to the talks by Finance and Planning Minister Adelien Wijnerman and her advisor Sigmund Proeve.

According to Simons, the talks lasted several hours and marked the beginning of more intensive cooperation with international financial institutions.

She told reporters that discussions are also underway with other international banks to support Suriname’s further development of the financial sector.

Meanwhile, President Simons says the population should not expect the government to “fix everything that broke in five years in one year,” telling reporters that she needs at least two years as a transition phase.

“But we also cannot keep saying: ‘We have no money,” she told reporters, adding that there are currently five tax bills before the National Assembly intended to reform the tax system.

President Simons acknowledged that “the problem is not simple,” referring to the legal and illegal gold diggers from whom the country receives little in return.

The Gold Sector Regulation Committee is also not functioning as it should, and the government has hinted that a gold authority will be established, with legislation likely to be sent to Parliament in the fourth quarter.

President Simons also stated that the government’s fuel price cap cannot remain in effect indefinitely. The government is forfeiting SRD 350 million per month (1 SRD = US$0.02) to keep fuel prices at a certain level.