1995 International Monetary Fund

February 1995

IMF Staff Country Report No. 95/15

Suriname—Recent Economic Developments

This report on recent economic developments in Suriname was preparedby a staff team of the International Monetary Fund as backgrounddocumentation for the periodic consultation with this member country. Inreleasing this document for public use, confidential material may havebeen removed at the request of the member.

Copies of this report are available to the public .from

International Monetary Fund • Publication Services700 19th Street, N.W. • Washington, D.C. 20431

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Price: $15.00 a copy

International Monetary FundWashington, D.C.

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INTERNATIONAL MONETARY FUND

SURINAME

Recent Economic Developments

Prepared by a staff mission consisting ofSaul Lizondo, Gerard Raymond, Bob Traa, Krishna Srinivasan (EP),

and Marijn Verhoeven (EP)

Approved by the Western Hemisphere Department

December 9, 1994

Contents

Basic Data

I.

II.

III.

IV.

V.

Recent Economic Developments1. Developments before 19942 . Developments during 1994

Tax Structure

Social Programs1. Social programs aimed directly at the poor2 . Education and training3. Price subsidies4. Supplementary programs5. Reform of the social programs

Financial System: Main Features1 . Legal framework •2. Financial institutions3. Central Bank supervision of the financial system4. Interest rates5. Financial instruments6. Financial system credit7. Monetary policy instruments

Developments in the Exchange Rate System in Suriname1. The initial system2. The introduction of the multiple system3. Modifications to the multiple system4. Return to a unified system

iv-v

112

5

131315151617

1818191920212122

2222232426

- 11 -

Text

1.2.3.4.5.6.7.

Contents

Tables

Selected Macroeconomic IndicatorsGovernment Tax Revenues (In millions of Suriname guilders)Government Tax Revenues (In percentage of total tax revenues)Expenditures on Social ProgramsSolvency RequirementsSummary of Average Commercial Bank Interest RatesComposition of Broad Money

Page

27282930313233

Statistical Appendix Tables

8.9.10.11.12.13.

14.15.

16.17.18.19.20.21.22.

23.24.25.

26.27.28.

29.

30.31.32.33.34.35.36.37.38.

Output and ExpenditureAggregate Demand and Supply at Current PricesGross Domestic Product by SectorReal Gross Domestic Product by SectorReal GDP at 1980 PricesAgriculture, Livestock, and

Fisheries- -Production DataBauxite Sector - Production DataWorld Production, Consumption,

and Changes in Stocks of Primary AluminumSelected Manufacturing ProductionConsumer Price Index - Paramaribo and SuburbsEmployment by SectorAverage Gross Labor Cost Per EmployeePopulation DataCentral Government OperationsGovernment Revenues and Grants (in millions ofSuriname guilders)

Government Revenues and Grants (in percent of GDP)Central Government ExpendituresCentral Government Subsidies,Net Transfers, and Lending

Central Government DebtSummary Accounts of the Banking SystemBanking System Liabilities to thePrivate Sector, End of Period

Distribution of Commercial Bank Creditby Destination

Loans and Deposits of Commercial Banks by Interest RatesSummary Balance of PaymentsBalance of PaymentsInternational ReservesExports by Major CategoriesValue, Volume, and Unit Price of Principal ExportsImports (c.i.f.) of HydrocarbonsImports by Economic UseDestination of Exports

3435363738

3940

41424344454647

484950

515253

55

56575859616263646566

- iii -

39.40.41.

42.

Charts1.2.

Contents

Origin of ImportsTrade IndicesPublic and Publicly GuaranteedExternal Debt Outstanding

Exchange Rates

Price and Exchange Rate DevelopmentsNominal Exchange Rates

Page

6768

6970

2a24a

- IV -

Suriname—Basic Data

Area and populationAreaPopulation (1993)Annual rate of population increase (1989-93)

GDP per capita (1993) 2/

Population characteristics (1993)Urban population (percent of total)Population density per square mile of agricultural landPopulation age structure (percent)

0-1415-6465 and above

Crude birth rate (per thousand)Crude death rate (per thousand)Total fertility rateLife expectancy at birth (years)Infant mortality rate (per thousand)Child death rate (per thousand)

Food, health, and nutritionIndex of food production per capita (1987 = 100)Per capita supply of:Calories (per day)Proteins (grams per day)

Population per physician (thousand)Population per nurse (thousand)Population per hospital bed (thousand)Access to safe water (percent of population)TotalUrbanRural

EducationStudents reaching grade 4 (percent)

Origin of nominal GDP (1993)Agriculture, animal husbandry, forestry, and fishingMining and quarryingManufacturing, construction, and public utilitiesTrade, restaurants, financial institutions, housing and real estatePublic administration and defenseTransportation, storage, communication, and personal, social, and othercommunity services

Ratios to GDP (1993)Exports of goods and services 2/Imports of goods and services 2/Central government revenues and grantsCentral government expenditures and net lendingCentral government external debt (end of year)Gross domestic savingGross investmentMoney and quasi-money (end of year)

163,265 sq. kilometers I/404,800

0.3 percent

US$1,214

49.0475.0

35.759.64.731.06.52.868.636.547.0

82.5

2,809.066.01.30.30.1

98.0100.094.0

92.0

7.3

109.5129.732.640.527.822.523.289.3

(percent)21.62.3

21.A36.710.7

- V -

Annual changes in selected economic indicatorsReal GDPReal GDP per capitaGDP at market pricesDomestic expenditure (at current prices)InvestmentConsumption

GDP deflator (1980 =100)Cost of living (annual averages)

Central government revenues and grantsCentral government expenditures and net lending

Broad moneyMoneyQuasi-money

Merchandise exports (f.o.b.)Merchandise imports (f.o.b.)

Central government financesRevenues and grantsExpenditures and net lendingOverall surplus or deficit (-)External financing (net)Domestic financing and adjustments(net)

Balance of paymentsMerchandise exports (f.o.b.)Merchandise imports (f.o.b.)Factor income (net)Nonfactor services and privatetransfers (net)

Official transfersCurrent accountOfficial medium" and long-termcapital (net)

Other capital (net)Errors and omissionsOverall balance

International reserve position

Monetary authorities (net) 3/Monetary authorities (gross)

IMF data (as of.October 31. 1994)MembershipStatusIntervention currency and rateQuotaFund holdings of Suriname guildersSpecial Drawings Rights DepartmentNet cumulative SDR allocationHoldings of SDRs

1989

4.13.316.29.934.34.1

11.60.8

30.87.4

18.111.230.2

45.931.4

931.71,317.0-385.313.2372.1

1990

0.1-0.512.419.516.020.6

12.421.8

18.2-2.3

4.23.84.7

-11.217.1

(millions1,101.21,286.2-185.0

3.1181.9

1991(percent)

2.92.819.726.913.130.9

16.326.0

-0.634.5

23.428.016.7

-16.03.9

of Suriname1,094.11,729.5-635.417.6617.8

(millions of U.S.620.3-476.8-6.8

-6.637.1167.2

-0.1-170.5-2.9-6.3

550.7-558.4-8.6

-5.857.535.4

-4.1-16.3-1.913.1

462.3-580.2-15.1

21.234.9-76.9

-3.826.44.1

-50.2

1992

4.33.938.437.954.033.7

32.643.7

44.623.4

19.511.133.0

6.03.5

guilders)1,581.92,134.4-552.4

2.0550.4

dollars)490.0-600.8-10.9

36.5103.218.0

-6.8-21.5-5.9-16.2

1993

-3.0-2.8112.8112.2114.5111.6

119.3143.4

119.8102.4

72.374.868.9

-9.5-13.4

3,476.84,320.7-843.9-227.41,071.3

443.3-520.5-13.2

49.347.05.9

-4.8-12.3-5.0-16.2

December 31

1989 1990 1991(millions of U.S.

24.429.0

37.339.6

-12.925.4

1992dollars)

-28.936.4

1993

-45.141.4

April 27, 1978Article VIII

U.S. dollar at Sf365 per US$SDR 67.60 million

100 percent of quota

SDR 7.75 million

I/ Includes a disputed area of some 19,000 sq. kilometers.2/ Based on a GDP in U.S. dollars estimated by World Bank and Fund staff.3/ Including external payments arrears as reserve liabilities.

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I. Recent Economic Developments I/

1. Developments before 1994

Suriname's economic performance has deteriorated markedly since theearly 1980s as a result of a decline in world prices for bauxite and itsderivatives--which substantially reduced export earnings and governmentrevenues 2/--and the lack of corrective measures. These difficulties werecompounded by the suspension in late 1982 of development assistance from theNetherlands following reports of human rights violations 3/, and guerrillaactivity against the Government. As international reserves dwindled, theauthorities resorted increasingly to trade and exchange restrictions and tocontrols on economic activities. This gave rise to widespread parallelmarket transactions and created serious distortions in relative prices.During the 1980s real GDP declined by a cumulative 12 percent, while annualinflation averaged 13 percent. Large remittances from Surinamese livingabroad, mainly in the Netherlands, prevented an even greater deteriorationof economic conditions.

In the period 1990-92 real GDP recovered moderately, but inflationaccelerated, reaching 58 percent in the 12 months ended December 1992, owingto a further weakening of financial policies (Table 1). Interest ratesbecame sharply negative in real terms, which initiated a gradual shift outof domestic financial assets. 4/ The external accounts remained weak, andthe overall balance of payments showed deficits that were financed by adecline in international reserves and an accumulation of external paymentsarrears. The Suriname guilder became increasingly appreciated in real

I/ The continued deterioration of statistical information in Suriname hasmade it increasingly difficult to assess economic developments. Further-more, the existence of a sizeable parallel economy and the operation of amultiple exchange rate system complicate the interpretation of economicdata, particularly on the national accounts and the external sector.

2/ Exports of bauxite and its derivatives accounted for 71 percent oftotal exports during 1980-93, while taxes on the bauxite sector represented14 percent of total government revenue.!/ This assistance, which is provided in the context of the Development

Cooperation Agreements of 1975 and 1992 between the two nations (seeappendix to SM/93/192), averaged some US$87 million a year in 1980-82. Itwas resumed in 1988 at US$3 million, and averaged US$50 million a year in1989-94. These amounts compare with a GDP of about US$466 million a year onaverage for 1989-94 (based on a World Bank estimate of GNP in U.S. dollarsfor 1993 that uses an average of the various legal exchange rates and theparallel exchange rate to convert Suriname guilders into U.S. dollars).4/ Broad money (average of beginning and end-of-period stocks) had

reached the equivalent of 116 percent of GDP in 1991, presumably due to thelack of alternative financial assets and expectations of a decline ininflation.

-- 2 -

effective terms as the official exchange rate remained fixed at Sf 1.785 perU.S. dollar (a rate in effect since 1971).

In response to increasing demand pressures in the official exchangemarket, in September 1992 the authorities introduced a multiple exchangerate system, with unification scheduled for mid-1994. I/ This systemcomprised up to seven exchange rates, including one for the transactions ofthe bauxite companies, 2/ and another one determined in auctions offoreign exchange provided by the Netherlands for balance of paymentssupport. 3J Based on a weighted average of the various prevailingexchange rates, 4/ the Suriname guilder depreciated substantially in realeffective terms following the introduction of the multiple system (Chart 1) .

The economic situation deteriorated further in 1993: real GDP declinedby 3 percent, reflecting lower output in the construction, government,manufacturing, and agricultural sectors; while the 12-month rate ofinflation accelerated to 225 percent by December owing to a furtherweakening of financial policies. Late in 1992 the National Assembly hadapproved a framework for a Structural Adjustment Program (SAP), whichcontained a number of policy measures in the fiscal, monetary, exchangerate, and social areas; but only few of the envisaged measures were put inplace. In the event, the Central Government showed an overall deficitequivalent to 8 percent of GDP in 1993 (including foreign grants equivalentto 20 percent of GDP) j>/ and the Central Bank experienced exchange losses(owing to the multiple exchange rate system introduced in late 1992)equivalent to 11.5 percent of GDP. Interest rates fell further in realterms, and the shift away from domestic financial assets intensified, withbroad money declining by 47 percent in real terms during 1993.

The current account of the balance of payments registered a surplus ofUS$6 million in 1993, with large declines in both exports and imports. The

\J The evolution of the multiple exchange rate system is described inSection V.

2/ In January 1993 the Government and the bauxite companies agreed that aspecial exchange rate would be applicable to the transactions of thesecompanies, that their tax liabilities would be based on accounting in U.S.dollars, and that taxes would be paid in U.S. dollars.3/ There were ten auctions of foreign exchange between October 1992 and

July 1993 for a total amount of US$36.4 million dollars.4/ Including the parallel exchange rate, weighted by the values of

exports not subject to surrender requirements and of imports not requiringproof of a foreign exchange purchase, such as "own funds" imports.5/ The ratio of foreign grants to GDP in the government accounts depends

on the particular exchange rate at which these grants are converted intoSuriname guilders for fiscal purposes, and thus it is likely to differ fromthe ratio of foreign grants in U.S. dollars to GDP estimated in U.S.dollars. Also, comparison of fiscal proceeds from foreign grants (as apercentage of GDP) across years may be distorted by sharp changes in theexchange rate applied to these grants for fiscal purposes.

CHART No 1

SURINAMEPRICE AND EXCHANGE RATE DEVELOPMENTS

(Index 1980=100)

Source: IMF Information Notice Syster

\f Trade-weighted index of nominal exchange rates deflated by seasonally adjusted relative consumer prices; increase means appreciation.

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- 3 -

overall balance of payments showed a deficit of US$16 million, which wasfinanced by an accumulation of payments arrears. By end-1993 gross interna-tional reserves stood at US$41 million (about one month of imports of goodsand nonfactor services) and external payments arrears had reached US$48million; I/ the officially recognized exchange rates ranged from Sf 1.785per U.S. dollar to Sf 87 per U.S. dollar, while the parallel rate stood atSf 110 per U.S. dollar.

2. Developments during 1994

Real GDP is projected to decline by about 1 percent in 1994, reflectinglower output in the government and agricultural sectors, and the 12-monthrate of inflation is likely to reach close to 500 percent. Inflation hasaccelerated because of further shifts out of domestic financial assets andnotwithstanding that the central government deficit is estimated to haveremained at the same level as in 1993 and central bank exchange losses havedeclined markedly (see below).

As had been envisaged in the SAP, the authorities unified the officialforeign exchange market on July 11, 1994. Initially, the new officialexchange rate was announced daily by the Central Bank, and commercial banksand exchange houses (cambios) had to effect their transactions at exchangerates that stayed within a narrow band around that rate; deviations from theband required central bank consent. Participation in the official marketcontinued to be subject to constraints on the demand side as banks andcambios could sell foreign exchange only to those holding foreign exchangelicenses. In addition, the system of "own funds" imports was discontinuedin May 1994.

Upon unification, the exchange rate was set at around Sf 180 per U.S.dollar, fairly close to the prevailing parallel exchange rate and implying adevaluation of some 40 percent with respect to the weighted average exchangerate of June 1994. Subsequently, the official exchange rate was keptrelatively constant in the presence of high inflation, and the spreadbetween the parallel and the official exchange rates increased to about50 percent by mid-October. At that point, the authorities allowed theofficial exchange rate to be determined freely by the market and started togrant import licenses liberally. 2/ The Suriname guilder depreciatedimmediately; by mid-November the official exchange rate was around Sf 370per U.S. dollar and the spread with the parallel rate was about 20 percent.

\J These are arrears on government and government-guaranteed debt; thereis no information available on arrears on private sector debt.2/ The Central Bank is a major participant in the foreign exchange market

as it receives foreign exchange surrendered by the main exporting sectors,which it sells back to commercial banks. Those transactions are effected atthe official exchange rate, which is calculated daily as a weighted averageof the exchange rates at which commercial banks effected their transactionswith the public during the previous working day.

. 4 -

The public finances, defined to include the central bank exchangelosses, are expected to improve considerably in 1994. The centralgovernment deficit would remain about constant, while central bank exchangelosses would decline from 11.5 percent of GDP in 1993 to 5 percent of GDP in1994, reflecting the unification of the official foreign exchange market inJuly. Central bank credit to the Central Government would expand by theequivalent of 11 percent of GDP in 1994, assuming a moderate decline inexternal arrears and no accumulation of domestic arrears.

The overall deficit of the Central Government is projected to remain atabout 8 percent of GDP in 1994 (including foreign grants equivalent to27 percent of GDP). Central government revenue, which had decreased as aproportion of GDP for a number of years due to the erosion caused byaccelerating inflation, is expected to rise by some 14 percentage points ofGDP in 1994 mainly reflecting the effect of changes in the exchange rateregime on the proceeds from income taxes on the bauxite companies, and fromimport duties and fees associated with international trade. JL/ In July1994, a sales tax on domestically produced nonalcoholic beverages wasintroduced, and the taxes on liquor, beer and tobacco were raised, but thecontribution of these taxes on total revenue remained minor.

Central government expenditures (other than those associated withforeign grants) are projected to increase by 5 percentage points of GDP in1994, mainly as a result of an 11 percentage points of GDP increase insubsidies and transfers that was offset only partially by a decline in otherexpenditure. Prior to the unification of the official exchange rates, manyof those subsidies were provided through the sale of foreign exchange atpreferential exchange rates (for imports of vehicle fuel, fuel to produceelectricity, cooking gas, wheat, and milk powder) and thus were reflected incentral bank exchange losses. Following unification, these subsidies appearexplicitly in the central government's accounts. After falling sharply in1993, expenditure on wages as a proportion of GDP is expected to declinefurther in 1994.

Interest rates have become increasingly negative in real terms (timedeposit interest rates stood at around 23 percent and bank lending rates ataround 30 percent by November 1994), and confidence in the domestic currencyhas continued to be eroded by the persistence of high inflation. On thisbasis, broad money is projected to decline by 54 percent in real terms (to37 percent of GDP) in 1994.

The current account of the balance of payments is projected to show asurplus of some US$40 million in 1994, reflecting a large fall in imports(excluding those associated with project assistance from the Netherlands),mainly in response to the sizable increase in the effective import tariffrate. Official grants are envisaged to increase to US$71 million (of whichUS$61 million represent project assistance from the Netherlands) and privateunrequited transfers to remain relatively unchanged at US$55 million. After

I/ See Section II.

- 5 -

taking account of scheduled debt amortization, the overall balance ofpayments is expected to show a small deficit, which, together with aprojected moderate reduction of arrears, would be financed by a decline ingross international reserves.

II. Tax Structure

This section describes the structure of the tax system in Suriname. Itindicates the nature, exemptions and rates of direct and indirect taxes inforce as of September 1, 1994.

The main sources of government revenue in Suriname are the profits taxon companies, customs duties, and individual income taxes, which togetherare estimated to provide 84 percent of tax revenues in 1994 (Tables 2 and3). The relative importance of each of these taxes, however, changeddrastically in 1994 as a consequence of the various modifications made tothe exchange rate system during the year. In particular, custom duties andthe profits tax on bauxite companies have risen substantially and, as aresult, their combined shares in total tax revenues are estimated to haveincreased from 27 percent in 1993 to 67 percent in 1994. I/

The most important source of tax revenue in Suriname is the profit taxon companies (37 percent of estimated tax revenue in 1994). This is a taxlevied on taxable income of firms domiciled in Suriname and of firms notdomiciled in Suriname but receiving a gross income in Suriname. It includesthe profit tax paid by the two local bauxite companies (32 percent ofestimated tax revenue in 1994), which has been calculated and paid in U.S.dollars since January 1, 1993. The national currency equivalent of theincome taxes paid by these companies has increased significantly since 1993as the bauxite exchange rate was increased from Sf 8 per U.S. dollar in 1993to Sf 55 per U.S. dollar for the first six months of 1994 and to the unifiedexchange rate thereafter.

The second most important tax in terms of revenue is the customs duty(34 percent of estimated tax revenue in 1994), which is levied on imports ofgoods. The valuation of imports in national currency for custom dutiespurposes was modified from Sf 1.785 per U.S. dollar to Sf 55.34 per U.S.dollar as of April 1, 1994 and to the unified exchange rate on July 11,1994. In addition, the previous system of numerous tariff rates rangingfrom 3 to 65 percent was replaced by a four-tier system of 5-10-20-40 per-cent as of July 4, 1994, but the rate of 40 percent for "extra-luxury"imports has not yet been implemented.

The third most important source of revenue is the tax on domestic andforeign taxable income of individuals (12 percent of estimated tax revenue

\J The modifications to the exchange rate system in 1994 also haveresulted in a marked increase in total tax revenue as a proportion of GDP,from 8 percent of GDP in 1993 to 24 percent of GDP in 1994.

- 6 -

in 1994) . The tax rates and brackets of the wage tax were modifiedeffective August 1, 1994 to compensate in part for the tax bracket creepthat resulted from the high rates of inflation that Suriname has experiencedrecently. An additional "crisis" rate of 10 percent of annual taxableincome for incomes over Sf 200,000 was introduced effective August 1, 1994and is to be levied until the year 2000.

Statistical fees and consent rights, which are levied on merchandiseimports and exports, are estimated to contribute 4 percent and 3 percent oftax revenue, respectively in 1994. The sharp increase in the exchange rateused for the valuation of imports and exports has increased the importanceof these two sources of revenue in 1994.

A number of consumption taxes levied on goods and services, albeitindividually not significant, together constituted an important source ofrevenue prior to 1994 (17 percent in 1993). However, their share isestimated to decline to 7 percent in 1994 because of the sharp increase inrevenue from the previously mentioned taxes, and because most consumptiontaxes are in the form of specific taxes and thus their revenue is eroded byinflation. They include a consumption tax on imported gasoline, on othersimilar motor fuels, and on diesel oil (5.4 percent of estimated tax revenuein 1994), a consumption tax on domestic smoking tobacco and cigarettes(0.9 percent of estimated tax revenue in 1994), and other minor taxes suchas the tax on motor vehicles operating in Suriname, excise taxes on beer andliquor, taxes on public entertainment, and a tax on all lotteries conductedin Suriname. A sales tax on nonalcoholic beverages of 5 percent of thewholesale price was introduced on July 1, 1994 and is projected to yield0.3 percent of tax revenue in 1994. A tax on alumina production is alsolevied on bauxite companies (0.9 percent of estimated tax revenue in 1994).

Other sources of government tax revenue, but with relatively littleyield, include a dividend tax payable by those persons who directly orthrough certificates receive dividends from shares in a profit-makingenterprise, or from income-bearing bonds in firms whose capital is dividedinto shares and that are established in Suriname; a wealth tax levied onholdings of stocks, bonds, mortgages, and insurance policies with periodicdividends and other assets; a tax on the export of wood; a tax on the rentalvalue of land and buildings; taxes on inheritance; a tax on merchandise intransit; and taxes on goods in bonded warehouses.

Suriname: Tax structure as of September 1, 1994 I/

Nature of Tax Exemptions and Deductions Rates

1. Taxes on net income and profits

1.1 Profit tax oncompanies,corporations andenterprises

1.2 Taxes onindividuals

Annual tax on profits ofcompanies operating within thecountry. Companies based inSuriname are taxable on world-wide income; branches ofcompanies not based in Surinameare taxed only on Surinameincome. Losses made in thefirst three years of operationscan be deducted from profitsover an indefinite period.Losses made after three yearsfrom the beginning of operationscan be deducted within the nextseven years. Losses are notspread out over a number ofyears if they can be deducted infull. Payments are made in thecurrent year on the basis of apreliminary assessment.

Nonincorporated public enterprises areexempt. Under the Investment Ordinancean investment board can grant indi-vidual exemptions up to five years ifinvestments are at least Sf 100,000 andup to ten years if investments are atleast Sf 375,000, and providedadditional employment is generated.Production costs, depreciation, in-terest on loans, and indirect taxes canbe deducted from turnover.

AnnualProfits in Sf

MarginalRates

Up to 49,999: 35 percent50,000 to 149,999: 40 percent150,000 to 249,999: 43 percent250,000 and over: 45 percent

One bauxite company pays 40percent of annual profits inU.S. dollars (under theBrokopondo agreement). Theother bauxite company pays 45percent of annual profits inU.S. dollars.

Casinos pay 50 percent.

Branches of insurance compa-nies: life insurancecompanies pay 7.5 percent ofpremiums income;other insurance companiespay 15 percent of the pre-miums income.

Suriname: Tax structure as of September 1, 1994 I/

Nature of Tax Exemptions and Deductions Rates

1.2.1 Individualincome taxes

A tax on income fromentrepreneurship, labor ("thewage tax"), pensions, fixedassets, and other capital. Thetax on income from labor iswithheld at the source based ona pay-as-you-earn (PAYE) systemas paychecks are received; forother income, payments duringthe current year are based on apreliminary assessment. Taxableincome covers world-wide sourcesand is defined as earningsreduced by the personal annualexemption of Sf 50,000 foremployees resident in Surinameand earnings without applicationof the personal exemption foremployees not resident inSuriname.

Diplomats and foreign technical as-sistance experts are exempt regardingincome related to their functions.Vacation pay, with a maximum ofSf 6,000, and gratification and bonusesup to the same maximum, are also exemptfrom tax. Deductions are allowed forlosses of business income as under thecorporate income tax. Other exemptionsand deductions: bonuses for work underhazardous conditions; charitablecontributions; medical expenses inexcess of 2 percent of gross income;educational expenses for dependentchildren (maximum Sf 3,600); gifts;life insurance premiums; alimony; andinterest on loans up to Sf 5,000. Thetax is reduced by 5 percent for eachchild with a maximum of Sf 150.Dividend tax payments are deductiblefrom tax liability.

An artist or professional sportsmanresident in Suriname who has a contractof short duration pays tax at the rateof 10 percent.

Rates for wage earners (as ofAugust 1, 1994):

Annual TaxableIncome (Sf)

MarginalRates

50,001-100,000: 15 percent100,001-200,000: 30 percent200,001-450,000: 45 percent450,001 and over: 50 percent

An additional "crisis" rate of10 percent of annual taxableincome applies to income overSf 200,000.

Rates on income fromovertime work:

Annual TaxableIncome (Sf)

up to 1,499:1,500-2,999:3,000 and over:

MarginalRates

10 percent20 percent30 percent

Rates for self-employedindividuals:

Annual TaxableIncome (Sf)up to 19,999:20,000-39,999:40,000-79,999:

MarginalRates •10 percent20 percent40 percent

80,000 and over: 55 percent

Suriname: Tax structure as of September 1, 1994 I/

Nature of Tax Exemptions and Deductions Rates

1.2.2 Dividend tax Tax on disbursed dividends,withheld at source. Taxpayments are deductible frompersonal income tax liability.

4. Taxes on property

4.1 Rental valuetax

4.2 Wealth taxes

4.3 Inheritancetaxes

Tax on the rental value of realproperty, i.e., land andbuildings.

Tax on the net wealth ofindividuals. The net wealthincludes holdings of mortages,stocks, bonds, jewelry,deposits, cash holdings, andmotor cars.

Tax on the amount inherited as aresult of a person's death andon the amount received as gift.

5. Taxes on goods and services

5.2 Beer

Tax on the consumption ofdomestically produced alcohol,payable by the producers.

Tax on the consumption ofdomestically produced beer,payable by the producers.

Tax on the consumption ofdomestically produced tobaccoproducts, payable by theproducers.

Dividend payments to holding companiesin the country.

Government; foreign missions; reli-gious, charitable, and educationalinstitutions; property of industrial,agricultural, and mining enterprises.

Furniture, antiques for personal use,jewelry up to a certain amount, andlife insurance policies.

Amount received from the Government.Amount received by the spouse, childrenor parents of the estate up to acertain amount.

25 percent. Under the doubletax avoidance treaty with theNetherlands, residents of eachcountry pay between 7.5 percentand 20 percent on dividends inthe country where these origi-nate, depending on the share inequity capital.

Annual rentalincome in Sf

MarginalRates

500-3,999: 5 percent4,000-15,999: 6 percent16,000 and over: 7 percent

Married persons: 0.8 percent onnet wealth over Sf 30,000.Unmarried persons: samerate but tax threshold is Sf20,000.

20 percent of the value ofthe inheritance or the valueof the gift.

Alcohol for medical purposes; exports. Sf 20 per liter.

Exports.

Exports.

Sf 5 per liter.

45 percent of the retail priceof tobacco and Sf 0.50 percigarette.

5.3 Tobacco

5.1 Liquor

Suriname: Tax structure as of September 1, 1994 I/

Nature of Tax Exemptions and Deductions Rates

5.4 Entertainment

5.6 Consumption taxon motor fuels

5.7 Tax on aluminaproduction

5.8 Motor vehicles

5.9 Sales taxon domesticnon-alcoholicbeverages

Tax on public entertainment,including all recitals,exhibitions, performances, orgatherings to which the publicis admitted on payment of a fee.

Tax on the sale of lotterytickets.

Performances that benefit social orcultural organizations.

None.

Tax on consumption of importedgasoline, other similar motorfuels, and diesel oil.

Tax on the quantity of aluminaproduced.

Annual license tax on the use ofa vehicle.

Deliveries to the Surinarae EnergyCorporation, the Suriname Water Works,the Suriname Aluminum Corporation, theBilliton Company and to aircraft andships with overseas destinations.

None.

Vehicles of the Government and diplo-mats; ambulance; agricultural tractors.

Tax on the consumption ofdomestically produced non-alcoholic beverages, payable bythe producers.

Exports.

25 percent of the price of thetickets.

15 percent of either the valueof the tickets sold or the valueof prizes in merchandise; plus5 percent of monetary prizes and5 percent of prizes inmerchandise. Lotteries forsocial or charitable purposespay only 10 percent of eitherthe value of the tickets sold orthe value of prizes inmerchandise.

2 percent for administrativefees and 1.5 percent formerchandise in transit onthe number of litersmultiplied by the differencebetween the old and the newc.i.f. value.

US$ 0.67 per ton.

Passenger cars: Sf 300 toSf 1,050 depending on weight.Trucks and pickups: Sf 545 toSf 1,500 depending on cargo ca-pacity.Buses: Sf 570 to Sf 800 de-pending on seating capacity.Tractors: Sf 500.Trailers: Sf 225 to Sf 1,150depending on weight.Two-wheeled vehicles: Sf 250.Motorbikes: Sf 50.

5 percent of wholesale price.

5.5 Lottery

Suriname: Tax structure as of September 1, 1994 I/

Nature of Tax Exemptions and Deductions Rates

6. Tax on international trade and transactions

6.1 Customs duty

6.2 Statistical fees

6.3 Consent rights

6. A Taxes on goodsin bondedwarehouses

Most imports are subject to anad valorem duty applied to thec.i.f. value. There is a singleschedule of tariffs, sincepreferential rates for theEuropean Community wereabolished in October 1991.Classification is based on theBrussels System of Nomenclature.

Tax on the value of imports andexports.

Imports for public development projectsexcept passenger cars and fuel;insecticides; fertilizers; medicalsupplies. Under the Investment Ordi-nance imports of investment goods canbe exempted provided a certain minimumamount is invested and a certainminimum number of jobs created.

Imports for public investment projects.

Tax on the value of imports andexports.

Imports for public investment projects.

Taxes on imported goods storedin bonded warehouses under thesupervision of the Inspectorateof Import Duties and Excises.

None.

Ad Valorem Rates

Reduced rate: 5 percent for rawmaterials, machinery, tools,gasoline, etc.Base irate: 10 percent.High rate: 20 percent forluxury goods, wine, beer, etc.Higher rate: 40 percent forextra-luxury goods.

2 percent of the f.o.b. value ofexports of bauxite andderivatives and of c.i.f. valueof imports of bauxite companies;0.5 percent of f.o.b. value ofother exports; and of c.i.f.value of imports of otheragents.

One bauxite company pays afixed sum of US$ 280,000 perannum for the statisticalfees and consent rightscombined.

0.1 percent of the f.o.b.value of exports of bauxite andderivatives;1 percent of f.o.b. value ofother exports; and1.5 percent of c.i.f. value ofall imports.

One bauxite company pays a fixedsum of US$ 280,000 per annum forthe statistical fees and consentrights combined.

Levies per 24-hour period:

Unpacked and liquid goods:Sf 0.05 for every 100 liters.All other goods: Sf 0.40 forevery cubic meter.

Surlname: Tax structure as of September 1, 1994 I/

Nature of Tax Exemptions and Deductions Rates

Tax on goods which are taken outof free commerce in Suriname:goods for exports, goodsintended for import, goods forreexport after a period instorage, goods under licensefrom the Foreign ExchangeCommission, and the purchases ofunprocessed gold.

Tax on the export value of allunprocessed and semi-processedwood.

Goods intended for reexport, for whichimport duties have been paid.

None.

Various rate schedules, by typeof goods.

100 percent of the value.

>;.'J Agf? Fund

Pension Fund

Medical Fund

Contributions levied on salaries None,and wages.

Contributions levied on salaries Noneand wages of civil servants.

Contributions levied on salaries Noneand wages of civil servants.

2 percent of gross salaries andwages.

10 percent of gross salariesand wages.

A percent of gross salariesand wages.

Sources: Tax Office, Ministry of Finance; Suriname Bauxite Institute; and Suralco.

\l The first digit of the tax structure classification is according to A Manual on Government Finance Statistics.

- - Te-xes or.r.^rc'r.ar.'iise ir>

e< C' f'f' '* '* -7 i'rj r ^ ^ a y

'•*•:£.•-:"''-?^ ~ • ' . "-OTi r 1 hu t i ons

- 13 -

III. Social Programs

Income distribution appears to be highly unequal in Suriname. \JAccording to estimates of a private consulting firm, the average income ofthe highest income earners (traders) was 27 times that of the lowest incomeearners (retired poor) in 1990. 2/ The Government estimates that25 percent of the Surinamese population lives in poverty (i.e. members ofhouseholds with an income of less than Sf 2,200 per month.) 3/ . To dealwith poverty and the disparities in the income distribution, the Governmentestablished a number of wide-ranging social programs, some of which arepresently under reform in an effort to increase their effectiveness. Someprograms are targeted directly at the poor or groups among which poverty iswidespread (the elderly, children and the handicapped), while others areaimed at reducing poverty by providing basic goods at subsidized prices, ormore indirectly through education and training.

1 . Social rorams aimed directl at the oor

Low^ income households can enroll in a government-financed program thatentitles them to subsidized medical care ("Geneeskundige Hulpkaart" or GHK,also known as the "Vrije Geneeskundige Voorzieningen" or VGV). Low-incomehouseholds are classified into destitute families (MonvermogendenM) , withless than Sf 1,100 in income per month, and limited income households("minvermogenden") , with a monthly income between Sf 1,100 and Sf 2,200.Limited income households pay a semiannual fee of Sf 10 for enrollment inthis program, while destitute families are exempt. The destitute contributeSf 25 for every day that they are hospitalized and Sf 10 for every drugprescription, while limited income families pay Sf 100 for a day in thehospital and Sf 25 for a prescription. In June 1994, 46,667 families with106,921 members were enrolled in this health care program. The cost for theGovernment is estimated at Sf 123 million in 1994 (Table 4),

In addition, the Government provides direct income support ("FinancieleBijstandsuitkering" or FB, also known under the name "Behoeftigen- enBejaardenzorguitkering11 or BBZ) to destitute households. The amount of theFB benefit depends on the size of the household, varying from Sf 270 permonth for single people to Sf 900 per month for families of five or more.It is estimated that currently some 11,000 families with 17,600 personsreceive an FB benefit. 4/ In 1994, the cost of the FB program isestimated at Sf 72 million.

Since the beginning of 1994, destitute families receive a supplementalemergency benefit of Sf 50 per family member per week. This program was

\J No income distribution survey has been carried out in Suriname.2/ See Coopers and Lybrand Deloitte (1990).3/ Unless indicated otherwise, all numbers in this chapter refer to the

situation as of September 1994.4/ See Warwick Research Institute, and Aide a la Decision Economique

(1994).

. 14 -

introduced to replace a program under which food parcels were distributed toevery household in Suriname and that broke down in the beginning of 1994.The cost of this program in 1994 is estimated at Sf 48 million.

A public pension system ("Algemene Ouderdomspensioen Voorziening" orAOV) provides retirement, disability, and survivor benefits to the 33,000Surinamese over 60 years of age. The pension benefit is currently Sf 900per month. The AOV is funded by payroll taxes (2 percent of taxable income)and by general tax receipts. In 1993, when pension benefits totalled Sf 178million, Sf 38 million was paid out of payroll taxes and Sf 140 million outof general taxes. In 1994, the total cost of the AOV pension system isestimated to rise to Sf 310 million.

The Government provides child allowances of Sf 30 per child per month(through a program called "Algemene Kinderbijslag" or AKB) to parents who donot receive financial support from their employers (see below thedescription of supplementary programs) . In 1994 the Government will spendan estimated Sf 25 million on AKB benefits for approximately 64,000 childrenup to the age of 18. In addition, in 1994 the Government will spend anestimated Sf 68 million from the budget and the equivalent of Sf 35 millionin foreign aid on food, school supplies, school clothing, study allowancesand school transport for children. It distributes free milk to needychildren up to age 5 on the indication of their pediatricians; meals forschool children of age 4 to 12 on the indication of their teachers; schooluniforms and shoes for children and teenagers between 6 and 16 years(limited-income households receive vouchers for two free school uniforms ayear, destitute households can claim four uniforms, and other students canobtain the cloth for school uniforms at a subsidized rate) ; monthlyallowances for students older than 15 years from poor families (theallowances are Sf 115 per month for students in secondary school and Sf 375a month for university students supplemented with Sf 1,125 a year for booksand other learning materials; 10 percent of the students receive such anallowance) ; free school transport for children who live more than fourkilometers from their school; and subsidies for books for students inprimary and secondary school.

The Government also administers a social housing program, although nofunds were allocated for this purpose in 1993 and 1994. Under this program,three types of housing are subsidized. First, households with an incomebelow Sf 1,000 a month can rent a house ("volkswoningen") at a cost of 1/7of their income, with a minimum rent of Sf 30. Households with incomes upto Sf 2,000 a month can build their own houses with government support inthe "zelfbouw woningen" or "sociale woningen" programs. In 1992, there were7,178 "volkswoningen" (up from 6,528 in 1988) and 320 houses in the"zelfbouw woningen" and "sociale woningen" programs (unchanged from 1988).After 1992, no new social housing has become available, even though at thestart of 1993, 14,000 people were on the waiting list.

In 1994, the Government is expected to grant an estimated Sf 38 millionin subsidies to 19 social institutions (homes for the elderly andhandicapped, orphanages and several charity institutions including a

- 15 -

lottery), partly on the basis of operating losses, partly on the basis ofoccupancy rates in homes and partly as a subsidy for fuel costs. Inaddition, the Government also subsidizes the medical institutions (at anestimated cost of Sf 198 million in 1994) , mostly by financing theoperational deficit and investments.

2. Education and training

A cornerstone of the social programs in Suriname is the universaleducational system, which entitles all school-aged children to freeeducation at the primary and secondary levels. The Government covers mostof the cost of education. In 1994, the Government will spend an estimatedSf 1,274 million on education, including departmental costs and other non-educational spending, (4.4 percent of total Government expenditures), ofwhich Sf 373 million would go to subsidies for private schools and theUniversity of Suriname. About 43 percent of all students attend a privateschool while the rest attend public schools.

In 1994, a training and credit program for small entrepreneurs wasstarted, financed out of Dutch grants. The training program is targeted atincreasing the level of vocational skills and is projected to costSf 15 million in 1994. The Social Investment Fund ("SociaalInvesteringsfonds" or SIF) provides credits to small businesses at aprojected cost of Sf 87 million in 1994.

3. Price subsidies

The Government subsidizes the prices of rice, milk, bread, sugar,water. cooking gas, electricity and fuel. I/ In 1994 these subsidies wereincreased markedly, in part to compensate for the discontinuation of thefood parcel program in the beginning of 1994, and in part to cushion theadverse effects on the price level of the unification of the exchange ratein July 1994.

Rice exporters are required to sell part of their merchandise to theGovernment at a concessional price. The rice is then sold to the public atan even lower rate via a number of designated shops. The Governmentsubsidizes milk by providing the single milk processing plant of Surinamewith imported milk powder at a subsidized price; controls on the price ofmilk ensure that this subsidy is passed on to the consumer. The Governmentsubsidizes bread in a similar way; the price of imported wheat is kept lowand the price of bread is subject to controls. To buy subsidized rice,milk, bread, cooking oil and sugar, the prospective buyer must have a card("green card") issued by the Ministry of Trade and Industry that can only beobtained by heads of households. The subsidizing of water takes the form ofcovering the operating losses of Suriname's water company. The system of

I/ A scheme to subsidize cooking oil was interrupted in May 1994 due to adisagreement over prices between the Government and the manufacturer.

- 16 -

subsiding cooking gas and electricity prices is aimed at keeping the priceslow for poor families. This is done by directly subsidizing the price ofthe smaller type of gas canisters, mainly in use by poorer households, andby subsidizing the operating losses of the electricity company that ensuefrom the progressive electricity price system, benefitting small users. Tokeep fuel prices down, the Government provides car owners with vouchers thatallow them to buy a limited amount of fuel at the equivalent of a subsidizedexchange rate.

4. Supplementary programs

The Surinamese system of social security consists of three layers:(a) Government administered social programs; (b) insurance schemes that areestablished as part of collective wage negotiations, and which are tied tothe employee status of the insured person; and (c) individual insuranceplans.

Government and private collective schemes provide old-age, disabilityand survivors' pensions, health care insurance, family benefits, terminationof service compensation, and sick pay and employment injury benefits. Theyare generally paid out of employers' and employees' contributions.Collective insurance plans are freely determined by employers and workers,with some exceptions (sick pay for up to six weeks and employment injuryinsurance are obligatory). Generally, only workers in larger firms and inthe public sector are provided with an extensive insurance package.

Public sector employees are insured against health care costs throughthe "Staatsziekenfonds" or SZF. Public sector employees contribute4 percent and public sector entities 5 percent of gross wages to the SZF,which covers about 145,000 people at an estimated cost to the Government ofSf 390 million in 1994. Since 1992, the SZF is also, on a voluntary basis,open for nonpublic sector employees, including employers who want to insuretheir workers. However, not many choose to participate in the SZF since itis perceived as an expensive insurance scheme.

The pension plan for public sector employees ("Pensioenfonds") isfunded by a contribution of 15 percent of gross wages, with 10 percent paidfor by the public sector employees and the remainder by the employer. In1994, the Government will pay an estimated Sf 489 million into the publicsector pension plan, covering about 43,000 public sector workers.Furthermore, about 19,000 private sector employees are enrolled in privatepension plans. This brings the share of workers covered by plans other thanthe AOV to more than 60 percent of the total labor force. Of the currentpensioners, about 40 percent receive a pension besides their AOV benefit.Upon retirement, workers receive a pension benefit that ranges between 40and 70 percent of their pre-retirement wage (70 percent for public sectoremployees and workers at large companies), not including the AOV benefit.Pension benefits, including those from the public sector pension plan, arenot indexed for inflation.

- 17 -

The third layer of social security is made up of individual insuranceplans. In Suriname, it is possible for individuals to buy insurance againstmedical costs (e.g. through the SZF), and against the loss of income as aconsequence of disability, death or old age. However, not many people takepart in these individual insurance schemes.

In addition to the social programs, the activities of domestic andforeign Non-Governmental Organisations (NGO's), often funded by foreigndonors, play an important part in the alleviation of poverty in Suriname.They undertake such activities as building and renovating schools,organizing food programs and aiding the handicapped. NGO's currently alsoparticipate in the implementation of the Social Investment Fund.

5. Reform of the social programs

The social programs in Suriname seem to have been beset by a lack oftransparency and problems of management. \J While the criteria todetermine the eligibility for benefits under these programs might be welldefined, there have been difficulties in properly targeting the poor, inpart because of the absence of an appropriate statistical database. Inaddition, the management of these programs is hampered by limitedresources. As a consequence, an estimated 15-20 percent of direct incomesupport (FB) is unjustly claimed. This percentage might be considerablyhigher for the subsidized medical insurance (GHK), as many employers avoidhaving to obtain costly health care insurance for their workers by under-declaring their wages.

Also, the Government has not always been able to fulfill itsobligations with respect to the state pension fund, the state medicalinsurance (SZF), and several suppliers of subsidized goods. This hasresulted in an apparent underfunding of the state pension plan, labor unrestamong state workers and disruptions in the flow of subsidized goods.

Other problems are related to the multi-tier nature of the socialsecurity system. The wide disparity in collective insurance benefits forworkers in different organizations seriously hampers mobility. Given thewide-ranging social benefits package that is provided to state workers, itis particularly unattractive for them to switch to positions in the privatesector. Moreover, the lack of coordination between the public sector andprivate sector arrangements gives rise to disincentives for private sectorschemes. For example, employers are reluctant to introduce child allowanceschemes since that would prevent their workers from obtaining state childallowance benefits (AKB).

In light of these problems, the Government has begun a reform of thesocial programs. The reform aims at increasing the effectiveness of the

I/ Warwick Research Institute and Aide a la Decision Economique (1994),Government of Suriname (1993) and International Labour Organization (1987).

- 18 -

programs through improved targeting, strengthening of management andcoordination, and the introduction of new programs. Some measures havealready been implemented. For example, the requirements for obtainingdirect income support (FB) have been simplified and the pools of childallowance (AKB) and state pension (AOV) recipients are being screened byeliminating those who do not show up when they are requested to. Inaddition, the Ministry of Social Affairs is in an ongoing process tostrengthen the internal and external auditing of the social programs byimproving its departmental organization, and it intends to initiate acomputerization project.

Several problems remain unresolved, however. Untargeted subsidiesstill are an important part of Suriname's social programs, an integratedpolicy that comprises both public and private forms of social insurance hasnot yet been developed, and the group of the poor still is not clearlyidentified for lack of basic statistics concerning the distribution ofincome.

References

Coopers and Lybrand Deloitte, "A Programme for Adjustment and StructuralAdaptation in Suriname," Special Report No.7 (December 1990).

Government of Suriname, "Meerjaren ontwikkelingsprogramma 1994-98: Surinameop een keerpunt (Multi-Annual Development Plan 1994-98: Suriname at aTurning Point),11 September 1993.

International Labour Organization, "Suriname: Planning of Social Security--Project Findings and Recommendations," 1987.

Warwick Research Institute and Aide a la Decision Economique, "DevelopmentCooperation Program," August 1994.

IV. Financial System: Main Features

1. Legal framework

The Bank Act of 1956 created the Central Bank of Suriname andestablished its legal framework; until then the largest commercial bank--the Surinaamsche Bank--had acted in the capacity of a Central Bank.Subsequently, the Bank and Credit Supervision Act of 1968 provided theguidelines for the supervision of financial institutions.

The Bank Act of 1956 sought to contain central bank financing of publicsector deficits through Article 21, which allows short-term governmentborrowing up to 10 percent of budgeted government revenues for the fiscalyear. To circumvent this ceiling, the Government has sought financing fromthe Central Bank by issuing short-term paper every six months. Thesetransactions with short-term paper were based on the authorities' liberalinterpretation of Article 16 of the 1956 Bank Act, which authorized the

- 19 -

Central Bank to use open market operations as tools of monetary policy. I/The authorities are now considering measures to close existing loopholes soas to make the legal limit effective (established by Article 21) , and arepreparing draft legislation that would enable the Government to consolidateexisting short-term credits into a one-time long-term central bank loan.

The Board of Directors of the Central Bank is headed by the Presidentof the Central Bank and includes three directors: the Director of BankingAffairs, the Director of Monetary and Economic Affairs, and the Director ofBank Supervision and Financial Institutions. The Bank is divided in sixdepartments (Administration, Secretary's, Banking Supervision, PersonnelAffairs, Public Relations, and Research) which report directly to thePresident of the Central Bank.

2. Financial ins t i. tutions

The banking system consists of the Central Bank of Suriname and sixcommercial banks. In declining order of the amount of credit outstandingthe commercial banks are: the Surinaamsche Bank, the Hakrinbank, the ABN-AMRO Bank, the Landbouwbank, the Surinaamse Postspaarbank, and theVolkscredietbank. 2/ The six commercial banks account for 90 to95 percent of credit to the private sector extended by the financial system.The Surinaamsche Bank and the ABN-AMRO bank are privately owned inaffiliation with Dutch banking groups, while the Government is the sole ormajority owner of the other four commercial banks. The rest of thefinancial sector comprises eight finance companies; four indemnity, fivelife, two funeral service insurance companies and one holding company;twenty-eight pension funds; eight provident funds; and thirty-four creditunions. In addition, in June 1993, five cambios (exchange houses) wereauthorized to deal in foreign exchange. All incorporated financialinstitutions, with the exception of the Government's pension fund, aresubject to supervision by the Central Bank.

3. Central Bank supervision of the financial system

The Central Bank's supervision practices include off-sight and on-sightinspection. In keeping with the off-site inspection requirements,commercial banks and medium and large credit unions are required to reporton all financial transactions to the Central Bank at least once a month;small credit unions must report once each quarter; provident funds must

I/ The Loan Act of 1971 established a global ceiling on credit to theGovernment, but this ceiling has been revised upward to accommodate thegrowing government budget deficits.

2/ As of April 1994, the shares of the three largest banks in total bankcredit were approximately 38, 18, and 15 percent, while the share of each ofthe other three banks was 10 percent.

- 20 -

report every six months; and all others must report once a year. I/ On-site inspection of commercial banks takes place once a year and usuallytargets one aspect of the institution such as the credit portfolio or theinternal organization and administrative procedures of banks.

Compliance with reporting requirements has not been uniform across thevarious types of institutions. While commercial banks and insurancecompanies have a good record of reporting information to the Central Bank,other institutions such as the credit unions, pension funds, and financecompanies have a poor record.

There are special off-site reporting instructions for each category ofinstitution. For instance, commercial banks' monthly statements mustinclude a list of debtors' names, along with their account number, theircredit limit and the amount drawn. In addition, commercial banks are toprovide information on the sectoral destination of credit and on how theloan was secured. When making loans, commercial banks also are required toabide by predetermined solvency ratios, which, depending on the nature ofthe financial assets and the extent of the perceived risk, determinethe percentage of equity capital cover which must be retained. These"solvency requirements" are shown in Table 5. Compliance with these ratiosis monitored routinely by the Central Bank.

Commercial banks also are subject to a large exposure rule designed tohelp spread risk. This provision restricts banks from extending loans ofmore than 25 percent of own capital to any one borrower or group ofborrowers. In addition, since 1986 banks have been subject to an "immobiliarule" which restricts them from having more fixed assets (such as realestate and inventory stocks) than equity capital.

The existing penalties for noncompliance with the above mentionedregulations (in order of increasing severity) are: counselling, publicexposure, legal action, and liquidation.

4. Interest rates

There are no regulations constraining the level of interest rates inSuriname. However, nominal rates have failed to keep up with inflation andhave become increasingly negative in real terms, presumably due to the lackof competition in the financial system. While in the 1980s bank depositsincreased in real terms despite negative real interest rates, reflecting inpart money illusion and the absence of alternative investment opportunities,the acceleration of inflation in recent years has been accompanied by asharp decline in bank deposits in real terms.

I/ Insurance companies have to report every month on their foreignexchange transactions and every quarter on their financial position. Inaddition to the annual audit report which insurance companies submit to theCentral Bank, life insurance companies must also file an actuarial report.

- 21 -

Nominal deposit rates averaged 4.7 percent a year during 1990-92 andincreased slightly to 5.4 percent in 1993. In real terms, the averagedeposit rate was a negative 24.5 percent a year during 1990-92, and itdeclined to a negative 67.5 percent in 1993 as inflation increased to225 percent (Table 6). Similarly, the average lending rate increased from9.7 percent a year in 1990-92 to 13.2 percent in 1993. In real terms, theaverage lending rate was a negative 20.9 percent in 1990-92 and declined toa negative 65.1 percent in 1993. With accelerating inflation, bank loansare being made increasingly on an adjustable rate basis, and there has beena shift in the composition of bank assets in favor of loans of a shortermaturity.

5. Financial instruments

Financial instruments in Suriname include demand deposits, savingsdeposits, time deposits, and foreign exchange deposits. I/ Table 7 showsbroad money and its components over the period 1989-93. The table reveals adecline in the share of demand deposits since 1991, and a decline in theshare of savings deposits in 1993.

Foreign currency deposits, legalized in April 1993, presumablyconstitute only a small fraction of private sector liabilities of thebanking system. 2/ Indeed, commercial banks as well as the cambios findit difficult to compete with the parallel market.

6. Financial system credit

Commercial banks are faced with monthly limits on credit expansion onthe basis of the composition of their deposit liabilities. No creditexpansion is permitted on the basis of demand deposits. Banks are allowedto use 75 percent of the increase in short-term time deposits for creditexpansion, 90 percent of the increase in savings deposits, and 100 percentof the increase in long-term time deposits. 3/ The ceiling on creditcreation for a given month is based on the difference between the increasein deposits in that month and the unused part of the previous month's creditceiling. 4/ Banks are not required by law to keep at the Central Bank theportion of their deposits that is not loaned (i.e., 100 percent of demand

I/ This is in addition to government bonds issued in 1990 and 1992.2/ Since commercial banks do not report information on foreign exchange

deposits to the Central Bank, no entries are shown in Table 7.3/ Short-term time deposits have a maturity of one year or less.4/ For example, if in a given month a commercial bank obtains additional

short-term time deposits for Sf 100 million of which it lends onlySf 50 million (instead of the Sf 75 million allowed) and in the next monthit obtains another Sf 100 million of short-term deposits, the bank can lendonly 75 percent of the difference between the additional deposits in thesecond month and the unused part of the first month ceiling. In otherwords, the bank can lend 75 percent of Sf 75 million rather than 75 percentof Sf 100 million.

- 22 -

deposits, 25 percent of short-term time deposits, 10 percent of savingsdeposits), but they have preferred to do so for reasons of safety andconvenience. \J

There are no known formal restrictions governing the sectoraldistribution of commercial bank credit in Suriname. Commercial banks haveshown a preference to finance trade activities. In 1993, the commercesector was the principal beneficiary of credit accounting for 35 percent oftotal credit issued. Commerce, housing construction, agriculture andmanufacturing activities accounted for 65 percent of total credit issued bythe commercial banks in 1993.

7. Monetary policy instruments

The Bank Act of 1956 authorized the Central Bank to engage in openmarket operations and utilizb rediscount policy, credit ceilings andliquidity ratios. In addition, the Bank and Credit Supervision Act of 1968expanded the list of instruments by authorizing the Central Bank to usereserve requirements. However, no use has been made of reserve requirementsor open market operations, and central bank rediscounting and overdraftfacilities are seldom used. Therefore, credit ceilings are the only formalmonetary policy instrument in use.

V. Developments in the Exchange Rate System in Suriname

This section describes the recent evolution of the exchange rate systemin Suriname, which moved from a single official exchange rate to multipleofficial exchange rates in late 1992, and returned to a unified system inmid-1994.

The system of multiple official exchange rates was introduced as atemporary arrangement to replace the increasingly unrealistic officialexchange rate and as an attempt to bring the growing amount of parallelmarket activity back into the formal financial system. However, as theunderlying macroeconomic disequilibria were not addressed, parallel marketactivity did not subside and pressures on the official foreign exchangemarket continued. As envisaged at the time of introducing the multipleexchange rate system, Suriname returned to a unified system onJuly 11, 1994.

1. The initial system

The Suriname guilder was first issued in 1865 under a Dutch royalcharter. Originally printed by the Surinaamsche Bank, notes have beenissued by the Central Bank of Suriname since 1957. In the period fromDecember 1971 until October 1992, the Suriname guilder was pegged officially

Commercial bank reserves held at the Central Bank are unremunerated.I/

- 23 -

to the U.S. dollar at a rate of Sf 1.785 per U.S. dollar. I/ A parallelmarket for foreign exchange emerged in the 1970s and proliferated after 1982following the suspension of the Dutch development aid. As inflationarypressures accumulated, the parallel market rate diverged rapidly from theofficial rate, reaching Sf 26 per U.S. dollar by August 1992 (Chart 2).

2- The introduction of the multiple system

In response to this divergence and the increasing importance ofparallel market activity, in October 1992 the authorities issued aresolution that established a multiple exchange rate system consisting ofseven exchange rates 2/ (Chart 2 and Statistical Appendix Table 42):

a. The official rate (Sf 1.785 per U.S. dollar), applicable to theservice of official and officially guaranteed debt and imports of basicconsumer goods;

b. The auction rate (the rate determined at the most recent auctionof balance of payments support from the Netherlands) applicable to licensedtransactions not designated to be carried out at the other officialrates; 3/

c. The tourist rate (Sf 10 per U.S. dollar), applicable to thetourist surrender requirement of f 300;

d. The rate for rice exports (50 percent of the official rate and50 percent of the auction rate);

e. The rate for banana exports (70 percent of the official rate and30 percent of the auction rate);

I/' There were two other rates: the Arron rate of Sf 5 per Dutch guilder,applicable to bridging aid with funds from the 1975 Development Treaty withthe Netherlands (mid-1988 through end-1990); and a special SLM rate of Sf 14per U.S. dollar, applicable to the conversion to Suriname guilders of theU.S. dollar price of airplane tickets (paid by the public) and the paymentsmade by SLM (the state-owned airline) on government-guaranteed debt.However, the volume of transactions at these rates was relatively small.

2/ This is in addition to the parallel market exchange rate.I/ There were ten auctions (between October 1992 and July 1993) for a

total amount of US$36.4 million. The mechanism by which foreign exchangewas allocated and by which the reported auction rate was determined varied.For the first three auctions, foreign exchange was allocated at the marginalsuccessful rate (i.e., lowest in foreign currency terms), and this rate wasreported as the auction rate. For the fourth and fifth auctions, foreignexchange was allocated at the individual successful bids--the Dutch auctionmechanism--while the reported auction rate remained the marginal successfulrate. For the sixth through tenth auctions, foreign exchange was allocatedat the individual successful bids, and the reported exchange rate was aweighted average of the successful bids.

- 24 -

f. The rate for other exports and service receipts (20 percent of theofficial rate and 80 percent of the auction rate) ; and

g. The bauxite rate (Sf 8 per U.S. dollar) for the surrender offoreign exchange by the bauxite companies, which became effective onJanuary 1, 1993. I/

The resolution also formally established a regulated rate to be managedby the Central Bank. However, this rate never came into effect because theplan to create an intervention fund for this purpose did not materialize.The auction rate was used in lieu of the regulated rate when reference wasmade to the regulated rate in legislation.

The foreign exchange auctions introduced market forces in thedetermination of the exchange rate for some legal transactions, but only toa limited extent. Participation in the auctions was subject torestrictions, as bidders were to use auction proceeds only for items on theso-called "positive list" (i.e., inputs for the "productive sectors").Participants were required to bring import licenses for the amount offoreign exchange desired; in the event of a successful bid, Dutch guilderswere disbursed from an account in the Netherlands to an exporter to pay forthe licensed import (foreign exchange was not credited to any account inSuriname). These restrictions were reflected in the spread between theparallel exchange rate and the auction rate, which averaged some 55 percentfor the period October 1992-July 1993.

3. Modifications to the multiple system

The pressure on the exchange rate system continued, as inflationaccelerated and the parallel market rate depreciated further (to Sf 42 perU.S. dollar by May 1993). In response, in June 1993 a new resolutionmodified the existing multiple exchange rate regime into one consisting ofthe following six rates:

a. The official rate (Sf 1.785 per U.S. dollar), applicable to theservice of official and officially guaranteed debt, and the receipts ofspecified exports that took place before October 2, 1992;

b. The bauxite rate (Sf 8 per U.S. dollar), applicable to the exportsof the bauxite companies, imports of basic consumer goods, imports of thehealth and education sectors, and transactions of the public utilities; 2/

I/ The rate applicable to the surrender of foreign exchange by thebauxite companies is governed by agreements negotiated between theGovernment and the two local bauxite companies.2/ As of January 1, 1994 the exchange rate applicable to the transactions

of the bauxite companies was changed to Sf 55 per U.S. dollar, ascontemplated in the 1993 Bauxite Agreement.

CHART 3

SURINAMENOMINAL EXCHANGE RATES

(Suriname guilders per U.S. dollar)

Source: Fund staff estimates.

This page intentionally left blank

- 25 -

c. The fuel rate, (Sf 20 per U.S. dollar), applicable to imports ofgasoline and diesel fuel;

d. The auction rate Sf 55.34 per U.S. dollar., as determined at thelast auction of balance of payments support, in July 1993, applicable tospecified imports of the productive sectors, export proceeds of the banana,shrimp, and oil sectors, aid received under the 1975 Development Treaty withthe Netherlands, and the foreign tourist surrender requirement;

e. A rate applicable to all foreign transactions of the rice sector:this rate moved from Sf 34 per U.S. dollar during the first half of 1993 toSf 64 per U.S. dollar for the spring harvest, and to the free-market rate inOctober 1993.

f. The free-market rate, determined in the newly established officialfree market (with six commercial banks and five cambios participating). Thefree-market rate was applicable to all transactions that went through thebanking system and for which none of the other official rates could be used.The official free-market exchange rate for a given day resulted from theaverage exchange rate reported by banks and cambios to the CentralBank. I/

As the supply of foreign exchange at the subsidized rates fell short ofexisting demand, in June 1993 the authorities permitted imports at the free-market rate of basic consumer goods, goods for the health and educationsectors, transactions of public utilities, fuel imports, and inputs for the"productive sectors".

The free market did not develop strongly; the volume of transactionremained low and foreign exchange was scarce, as banks and cambios were notcompletely free in setting the exchange rate, mainly because of moralsuasion. For instance, a bank reporting a heavily depreciated rate could beasked to meet with the Central Bank to discuss underlying developments.Moreover, these institutions apparently had difficulties in competingagainst parallel market dealers who had a well-developed network and moreexperience in operating in a competitive foreign exchange market.

Regulations on foreign exchange deposits further limited thecompetitiveness of the free market. Foreign exchange accounts became legalin April 1993, but were subject to restrictions. For instance, they couldnot be credited with export proceeds or receipts from real estatetransactions, and the use of funds in these accounts required the filing ofextensive documentation.

i/ Only rates on transactions with the public were used to calculate theofficial free-market rate (interbank quotes were disregarded).

- 26 -

4. Return to a unified system

In accordance with the Structural Adjustment Program approved by theNational Assembly in November 1992, the authorities adopted a unifiedexchange rate system on July 11, 1994. Initially, the unified exchange ratewas managed by the Central Bank, but as of mid-October the rate was allowedto float freely (see Section I).

- 27 -

Table 1. Suriname: Selected Macroeconoroic Indicators

1990 1991 1992 1993Est.1994

Real GDP (at 1980 prices)Real GDP per capita

Consumer price indexAnnual averageEnd of year

Broad money (end of period)

(Annual percentage change)

0.1 2.9-0.5 2.8

21.831.6

26.030.0

A.2 23.A

(In percent of GDP)

A.33.9

A3.757.5

19.5

-3.0-2.8

1A3.A22A.7

72.3

-0.8-0.7

357.0A86.2

167,3

Central government financesRevenuesExternal grantsCurrent expendituresNet lendingCapital expenditures

Current account deficit (-)Overall deficit (-)

Overall deficit plus Central Bank'sexchange losses (-)

33.13.338.50.83.2

-2.6-6.1

-6.1

28.A1.8A6.10.51.1

-16.3-17.5

-17.5

23.28.3A0.20.22.2

-9.0-11.0

-11.8

12.520.137.00.13.A

-6.8-7.9

-19.5

26.827.156.3

5.6

-7.8-8.1

-13.0

(In millions of U.S. dollars)

External transactionsMerchandise exportsMerchandise importsBalance on goods and nonf actor servicesCurrent account balanceOverall balance

(In millions of

Gross official foreign reservesNet official foreign reservesOf which: payments arrears

Sources: Central Bank of Suriname; Generalestimates.

550.7558.4-55.435.413.1

U.S. dollars

39.637.32.2

462.3 490.0580.2 600.8-152.2 -134.3-76.9 18.0-50.2 -16.2

at end of period)

25.4 36.4-12.9 -28.921.0 32.0

Bureau of Statistics; Ministry of Finance;

443.3520.5-86.15.9

-16.2

41.4-45.148.0

and Fund

420.8489.4-73.839.8-1.4

36.2-46.644.2

staff

- 28 -

Table 2. Suriname: Government Tax Revenues JL/

(In millions of Suriname guilders)

Tax revenues

Direct taxesIncome taxes

Individual income taxesWage taxSelf-employed income tax

Profit tax on companiesof which: bauxite companies

Wealth taxDividend taxRental value taxOther

Indirect taxesConsumption taxesLiquorBeerTobaccoLottery

EntertainmentMotor vehiclesMotor fuelSoft drinks

Taxes on international tradeCustoms dutyof which: bauxite companies

Statistical feesof which: bauxite companies

Consent rightsof which: bauxite companies

Wood export taxExport and re-export taxes

Other taxesTax on alumina productionOther

Memorandum items not included above:Employees' contributions toPension FundMedical FundOld Age Fund

1990

637.3

346.9335.1153.0143. 7

9.3182.1112.00.77.90.111.1

290.4104.113.815.829.75.61.318.019.8

—184.3157.8

18.65.46.21.8

—1.62.11.60.5

40.217.119.1

1991

758.0

412.5397.1227.8209.318.5169.357.31.34.03.014.1

345.5133.410.514.325.74.71.619.157.5

—209.8177.5

22.95.07.41.6

—2.02.31.80.5

46.919.424.1

1992

793.2

384.9372.1251.5226.624.9120.626.21.72.11.611.1

408.3160.614.19.726.04.23.430.672.6

—244.9216.0

21.94.85.31.2

—1.72.81.61.2

51.522.526.5

1993

994.8

610.1596.6424.7391.433.3171.895.62.02.01.811.6

384.7170.814.616.4

31.45.24.534.863.9

—207.7176.4

24.05.37.11.60.1

6.13.42.7

70.4

27.238.4

Est.1994

11.220.7

5,598.85,573.11,380.41,275.9

104.54,192.7

3,638.24.622.71.0

21.1

5,621.9827.920.122.0106.43.96.630.3604.734.0

4,680.73,841.91,207.2465.3144.8371.554.52.0

113.397.015.9

433.6203.8195.1

Sources: Ministry of Finance; and Fund staff estimates.

I/ Excludes tax revenues from unindentified sources. As a result, figures may difer from those in

Statistical Appendix Table 22.

- 29 -

Table 3. Suriname: Government Tax Revenues

(In percentage of total tax revenues)

Tax revenues

Direct taxesIncome taxesIndividual income taxesWage taxSelf-employed income tax

Profit tax on companiesof which: bauxite companies

Wealth taxDividend taxRental value taxOther

Indirect taxesConsumption taxesLiquorBeerTobaccoLotteryEntertainmentMotor vehiclesMotor fuelSoft drinks

Taxes on international tradeCustoms dutyof which: bauxite companies

Statistical feesof which: bauxite companies

Consent rightsof which: bauxite companies

Wood export taxExport and re-export taxes

Other taxesTax on alumina productionOther

1990

100.0

54.452.624.022.51.528.617,60.11.2

—1.7

45.616.32.22.54.70.90.22.83.1

—28.924,8

2.90.81.00.3

—0.30.30.30.1

1991

100.0

54.452.430.127.62.422.37.60.20.50.41.9

45.617.61.41.93.40.60.22.57.6

—27.723.4

3.00.71.00.2~0.30.30.20.1

1992

100.0

48.546.931.728.63.115.23.30.20.30.21.4

51.520.21.81.23.30.50.43.99.2

—30.927.2

2.80.60.70.1

—0.20.30.20.1

1993

100.0

61.360.042.739.33.417.39.60.20.20.21.2

38.717.21.51.63.20.50.53.56.4

—20.917.7

2.40.50.70.2

—

0.60.30.3

Est.1994

100.0

49.949.712.311.40.937.432.4

—0.2

—0.2

50.17.40.20.20.9

—0.10.35.40.341.734.210.84.11.33.30.5

—

1.00.90.1

Source: Table 2.

- 30 -

Table 4 Suriname: Expenditures on Social Programs

(In millions of Suriname guilders)

Est.1993 1994

Total expenditures on social programs 608 6,858

Ministry of Social Affairs 248 660Medical care (GHK) 13 123Direct income support (FB) 25 72Supplemental emergency benefit -- 48Public pension system (AOV) 178 310Child allowance (AKB) 11 25Food, school supplies, andschool clothing for children 9 44

Subsidies to social institutions 12 38

Ministry of Education 95> 432School feeding program -- 35Study allowances, school transport,and school clothing \J 42 24

Subsidies to private schools and theUniversity of Suriname 2/ 53 373

Ministry of Labor ^ 102Training program for small enterpreneurs . -- 15Social Investment Fund (SIF) -- 87

Ministry of Trade and Industry 3/ 54 1,052Subsidies on rice, milk, bread, cookingoil, and sugar 54 1,052

Ministry of Natural Resources 112 4.414Subsidies on water, electricity, andcooking gas 112 2,567

Vehicle fuel subsidy -- 1,847

Ministry of Health 99 198Subsidies to medical institutions 99 198

Memorandum itemsTotal government revenues 3,477 25,196Total government expenditures 4,321 28,971GDP at market prices 10,673 46,799

Sources: Ministry of Social Affairs; Warwick Research Institute; andStatistical Appendix Table 25.

I/ Excludes the costs of school transport in 1994. Those costs amountedto Sf 35 million in 1993.2/ Data on expenditures on public schools are not available.3/ No estimate is available for the cost of the food parcel program in

1993.

- 31 -

Table 5. Suriname: Solvency Requirements

(In percent)

Required CoverageAssets Requiring Solvency Coverage From Owned Assets

A. Bills of exchange and discounted promissory notes 5,0

B. Granting of credits:Covered by mortgages 5.0Other covered credit 7.5Uncovered 10.0

C. Other debit positions requiring solvency coverage 10.0

D. ParticipationsIn financial institutions 100.0In other enterprises 20.0

E. Real estate 15.0

F. Movable property, including inventory 20.0

G. Liabilities through guarantees, security bonds, andletters of credit to the extent that they are notcovered by payments, bank guarantees, and/or equallyvalid assets not covered by solvency requirements 2.5

H. Uncovered voluntary foreign exchange positions 2.5

Source: Central Bank of Suriname.

- 32

Table 6. Suriname: Summary of Average Commercial BankInterest Rates

(In percent)

Nominal deposit ratesTime depositsSavings deposits

1989

4.65.93.5

1990

4.76.03.4

1991

4.86.13.5

1992

4.65.83.5

1993

5.47.73.1

Nominal lending rate 9.2 9.4 9.8 9.8 13.2

Real deposit rates I/ 2.5 -20.4 -19.4 -33.6 -67.5Time deposits 3.8 -19.5 -18.4 -32.8 -66.8Savings deposits 1.4 -21.4 -20.4 -34.3 -68.3

Real lending rate I/ 7.0 -16.8 -15.5 -30.3 -65.1

Memorandum itemCPI (percentage changeend-of -period) 2.0 31.6 30.0 57.5 224.7

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

I/ Nominal rates deflated by the end-of-period rate of increase in theconsumer price index.

- 33

Table 7. Suriname: Composition of Broad Money

1989 1990 1991 1992 1993

(In millions of Suriname guilders)

Currency in circulation andtotal depositsCurrency in circulationDemand depositsSavings depositsTime deposits

Currency in circulation andtotal depositsCurrency in circulationDemand depositsSavings depositsTime deposits

3.602.2874.2

1,270.0575.1882.9

(In percent of

100.024.335.316.024.5

3.752.4958.2

1,268.3795.3730.6

broad money)

100.025.533.821.219.5

4.632.01,143.01,707.6982.0799.4

100.024.736.921.217.3

5 .534 . 51,347.21,818.41,427.9941.0

100.024.332.925.817.0

9.534.62,669.62,865.12,100.81,899.1

100.028.030.022.019.9

Source: Central Bank of Suriname.

- 34 - STATISTICAL APPENDIX

Table 8, Suriname: Output and Expenditure

(In millions of.Suriname guilders at current prices)

Gross domestic expenditureConsumptionPrivate I/Central Government

Gross investmentPrivate I/Central GovernmentOf which:fixed capital formationchange in inventories

Gross domestic savingPrivate sector \JCentral Government

Resource balanceExports of goods andnonfactor services

Imports of goods andnonfactor services

GDP at market pricesFactor receiptsFactor payments abroad (-)

GNP at market prices

1989

2.424.21,853.01,016.4836.6571.3484.486.9

455.4115.8

839.21,122.2-283.0

267.9

1,022.6

754.7

2.692.11.7

-12.8

2.681.0

1990

2.896.42,233.81,455.5778.3662.3566.496.2

585 . 577.1

793.2857.2-64.0

130.6

975.0

844.4

3.027.04.0

-15.9

3.015.1

1991

3.674.52,924.91,919.21,005.7749.6711.138.5

589.3160 . 3

699.61,278.3-578.7

-50.0

1,000.0

1,050.0

3.624.52.5

-19.3

3.607.7

1992

5.066.43,911.82,518.21,393.61,154.71 , 046 . 5108.2

917.5237.1

1.104.71,540.6-435.9

-50.0

1,450.0

1,500.0

5.016.41.3

-25.7

4.992.0

Prel.1993

10.752.58,276.05,351.92,924.12,476.62,112.9363.7

1,989.5487.0

2.396.62,870.2-473.6

-80.0

2,800.0

2,880.0

10.672.50.3

-25.7

10.647.1

Sources: Data provided by the Surinamese authorities; and Fund staffestimates.

\J Includes public entities other than the Central Government.

- 35 - STATISTICAL APPENDIX

Table 9. Suriname: Aggregate Demand and Supply at Current Prices

1989 1990 1991 1992

Prel

1993

(Annual percentage change)

Gross domestic expenditureConsumptionPrivate JL/Central Government

Gross investmentPrivate \JPublic

Exports of goods andnonfactor services

Imports of goods andnonfactor services

GDP at market prices

(In percent

Gross domestic expenditureConsumptionPrivate I/Central Government

Gross investmentPrivatePublic

Gross domestic savingPrivate sector I/Public sector

Resource balanceExports of goods andnonfactor services

Imports of goods andnonfactor services

1 94.15.12.834.334.731.7

50.2

33.3

16.2

of GDP at

90.068.837.831.121.218.03.2

31 241.7-10.5

10.0

38.0

-28.0

JULI20.643.2-7.016.016.910.7

-4.7

11.9

12.4

26.930.931.929.213.125.660.0

2.6

24 3

na

3L,_i33.731.238.654.047.2181.0

45.0

42.9

38.4

112.2111.6112.5109.8114.5101.9236.1

93.1

92.0

112.8

current market prices)

15.773.848.125.721.918.73.2

26.228.3-2.1

4.3

32.2

-27.9

101.480.753.027.720.719.61.1

19.335.3-16.0

-1.4

27.6

-29.0

101.078.050.227.823.020.92.2

22.030.7-8.7

-1.0

28.9

-29.9

100.777.550.127.423.219.83.4

22.526.9-4.4

^1

26.2

-27.0

Sources: Statistical Appendix Table 8.Includes public entities other than the Central Government.

- 36 - STATISTICAL APPENDIX

Table 10. Suriname: Gross Domestic Product by Sector

(In millions

GDP at factor cost

Primary sectorAgriculture, animal husbandry,forestry, and fishing

Mining and quarrying

Secondary sectorManufacturingConstructionElectricity, gas, and water

ServicesTrade, restaurants, and hotelsTransportation, storage,and communication

Financial institutions, housing,real estate, business services

Public administration and defensePersonal, social, and othercommunity services

Imputed bank service charges

Indirect taxes minus subsidies

GDP at market prices

(In

Primary sectorSecondary sectorServices

1989

of Surinam

2.488.1

333.5

243.689.9

593.0321.0177.994.1

1,561.7514.2

166.5

540.9514.0

35.1-209.0

204.0

2.692.1

percent of

13.423.662.9

1990

e guilders at

2.800.2

405.2

313.691.6

672.7371.5193.4107.8

1,722.3572.5

180.2

624.4527.1

34.6-216.5

226.8

3.027.0

GDP at factor

14.524.061.5

1991

current prices)

3.384.4

491.7

402.589.2

754.5388.0222.8143.7

2,138.3711.5

235.1

739.6677.5

34.0-259.4

240.1

3.624.5

cost)

14.522.363.2

1992

4.705.8

776.9

673.4103.5

1,003.0498.9353.2151.0

2,925.91,089.4

326.4

953.2843.3

36.2-322.6

310.6

5.016.4

16.521.362.2

Prel.1993

•1..468.6

2,556.3

2,306.8249.6

2,286.91,493.8

561.6231.5

5,620.42,786.0

734.2

1,568.1933.6

40.1-441.6

208.9

IJLJ LS

24.421.953.7

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

- 37 - STATISTICAL APPENDIX

Table 11. Suriname: Real Gross Domestic Product by Sector

Prel.1989 1990 1991 1992 1993

(In millions of Suriname guilders at 1980 prices)

GDP at factor cost 1.406.1 1.406.9 1.448.0 1.510.8 1.465.5

Primary sector 260.3 258.9 284.9 293.8 299.6Agriculture, animalhusbandry, fores try,and fishing 129.1 130.2 154.5 156.2 147.4

Mining and quarrying 131.2 128.7 130.5 137.7 152.2

Secondary sector 359.7 364.9 360.0 382.2 347.0Manufacturing 181.0 182.6 176.8 178.5 168.4Construction 68.1 58.7 57.4 68.3 49.1Electricity, gas and water 110.6 123.6 125.7 135.4 129.5

Services 786.2 783.0 803.1 834.9 818.9Trade, restaurants, and hotels 182.9 170.6 168.3 179.4 188.4Transportation, storage,and communication 76.9 75.6 89.0 93.2 92.3

Financial institutions,housing, real estate,business services 245.7 250.8 257.1 270.6 271.8

Public administrationand defense 375.5 382.1 388.8 395.8 378.7

Personal, social, and othercommunity services 19.0 20.0 16.2 15.6 13.8

Imputed bank service charges -113.8 -116.1 -116.3 -119.7 -126.1

Indirect taxes minus subsidies 115.3 115.3 118.7 123.9 120.2

GDP at market prices 1.521,4 1.522.2 1.566.7 1.634.7 1.585.6

(In percent of GDP at factor cost)

Primary sectorSecondary sectorServices

18.525.655.9

18.425.955.7

19.724.955.5

19.425.355.3

20.423.755.9

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

- 38 - STATISTICAL APPENDIX

Table 12. Suriname: Real GDP (at 1980 Prices)

(Annual percentage change)

GDP at factor cost

Primary sectorAgriculture, animal husbandry,forestry, and fishing

Mining and quarrying

Secondary sectorManuf ac tur ingConstructionElectricity, gas, and water

ServicesTrade, restaurants, and hotelsTransportation, storage,and communication

Financial institutions, housing,real estate, business services

Public administration and defensePersonal, social, and othercommunity services

Imputed bank service charges

1989

4.1

1-9

-2.46.6

0.91.5

-10.38.3

6.632.1

-4.8

6.71.3

-7.99.7

1990

P_i

-0.5

0.9-1.9

1.50.9

-13.711.7

-0.4-6.7

-1.7

2.11.8

5.12.0

1991

2 9

10.0

18.61.4

-1.3-3.2-2.21.8

2.6-1.3

17.7

2.51.8

-18.80.2

1992

<L1

3.1

1.15.5

6.10.918.97.7

4.06.6

4.7

5.31.8

-4.02.9

1993

0

2.0

-5.610.5

-9.2-5.6

-28.1-4.4

-1.95.0

-1.0

0.5-4.3

-11.75.4

Sources: Statistical Appendix Table 11.

- 39 - STATISTICAL APPENDIX

Table 13. Suriname: Agriculture, Livestock, andFisheries—Production Data

(In metric tons unless otherwise indicated)

Agricultural productionPaddyBananasPlantainsOil palm fruitSugarcaneVegetables \JPeanutsCacao and coffeeOther food cropsCitrusCoconuts 2/

Planted area 3/RicePhysical areaPlanted areaCrop intensity A/

BananasPlantainsOil PalmSugarcaneCitrus

Yield 5/PaddyBananasPlantainsOil palm fruitSugarcane

LivestockMeat productionBeefPorkChickenEggs 6/

Size of herd 2/Cows and oxenOf which: milk cows

PigsChickens

FisheriesCatchShrimpCrab/other seaproducts

1989

260,89545,9438,76613,95318,49215,483

41069

5,07115,24211,270

49,60069,8601.412,076352

6,1282,4952,239

3.7322.1324.902.287.41

2,0591,6059,63660.0

89.09.025.16,883

2,4542,987

Source: Ministry of Agriculture, Animal Husbandry,

\/ Cabbage, tomatoes, and green vegetable;2/ In thousands of units.3/ In hectares4/ The ratio of planted to physical area;5/ In metric tons per hectare.y In millions of units.

s.

reflects

1990

196,01047,9437,7577,695725

23,15357163

9,11815,99210,956

48,20052,0051.082,073375

5,4252,2732,275

3.7723.1320.691.420.32

2,2431,65012,57661.0

92.09.031.98,384

2,9293,385

and Fishing.

areas with two

1991

229,26049,97117,0827,814729

33,12241482

12,52016,00512,086

48,20060,0851.252,116663

4,8352,2912,425

3.8223.6225.761.620.34

2,6671,9759,52861.0

92.08.830.86,806

3,0838,037

harvests .

1992

261,08049,88613,19710,640

—37,72542864

15,69016,9169,522

48,20068,7501.43

2,131622

4,6252,2452,506

3.8023.4121.222.30

•*••

2,6371,4498,93240.0

95.011.531.05,955

2,8368,160

Prel.1993

236,26449,49318,5188,681

—43,61547759

17,56019,02311,762

43,20058,6401.222,170966

4,1632,2452,544

4.0322.8119.172.09

"•**

2,1831,4006,75560.0

97.010.036.04,504

2,7007,121

- 40 - STATISTICAL APPENDIX

Table 14. Suriname: Bauxite Sector - Production Data

1989 1990 1991 1992 1993

(In thousands of metric tons)

BauxiteProductionProcessed into aluminaChange in stocks

AluminaProductionExportsProcessed into aluminumChange in stocks

AluminumProductionExportsChange in stocks

3,4613,388

73

1,5671,553

55-41

28.426.12.3

3,2833,338

-55

1,5321,473

61-2

31.331.9-0.6

3,1343,271-137

1,5101,449

601

30.726.34.4

3,2503,237

13

1,5761,514

63-1

32.434.5-2.1

3,4133,012401

1,5071,426

5922

30.128.71.4

(Percentage change)

BauxiteProduction

ProductionExports

AluminumProductionExports

0.8

-4.0-4.7

189.8243.4

-5.1

-2.2-5.2

10.222.2

-4.5

-1.4-1.6

-1.9-17.6

3.7

4.44.5

5.531.2

5.0

-4.4-5.8

-7.1-16.8

(In thousands of metric tons)

World totalsBauxite productionAlumina productionAluminum production

Suriname's market shareBauxite productionAlumina productionAluminum production

107,603 115,545 115,25431,53719,137

(In percent)

3.224.970.15

32,89419,383

2.844.660.16

33,94719,692

2.724.450.16

108,17833,77119,452

3.004.670.17

113,52635,16819,805

3.014.290.15

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

- 41 - STATISTICAL APPENDIX

Table 15. Suriname: World Production, Consumption,and Changes in Stocks of Primary Aluminum

(In thousands of metric tons)

Total world production

Total world consumption

Surplus or deficit (-)in production

Memorandum itemWorld price of aluminum

(percent change)

1989

19.137

19,255

-118

I/ 88.5-23.4

1990

19,385

19,046

337

74.4

Sources: World Metal Statistics, various issuesFinancial Statistics; and Fund staff estimates.

1991

19,692

18,490

1, 2,02

59.2-20.5-

, London ;

1992

19,452

19,173

279

57.0^3.7

Prel.1993

19,805

19 1 354

451

51.8-9.1

International

I/ U.S. cents per pound.

15.9

-42 - STATISTICAL APPENDIX

Table 16. Suriname: Selected Manufacturing Production

Wheat flourPasteurized milkMargarineSugarBeer and stoutCattle fodderCigarettesShoesCooking oilCementSoft drinksProcessed wood

Units

metric tonsthousand litersmetric tonsmetric tonsthousand litersmetric tonsmillion unitsthousand unitsthousand litersthousand metric tonsthousand literscubic meters

1989

18,60511,196

55842

11,67851,812

526106

2,92852

29,37943,000

1990

20,74410,684

755--

12,21880,107

487110

1,60355

16,71544,100

1991

15,40816,727

386--

12,21832,483

337137

1,06924

26,53039,500

1992

19,68515,342

578--

6 , 6024,217

419112

1,50414

10,16842,700

Source: General Bureau of Statistics,

- 43 - STATISTICAL APPENDIX

Table 17. Suriname: Consumer Price Index - Paramaribo and Suburbs

Period average19891990199119921993

End of period19891990199119921993

Period average19891990199119921993

End of period19891990199119921993

TotalIndex(1.000)

667.8813.2

1,024.31,471.13,582.4

671.0882.8

1 , 147 . 81,808.45,871.9

0.821.826.043.7143.4

2.031.630.057.5224.7

Food and Housing andBeverages Furnishings(0.400) (0.236)

( Index

742.6964.3

1 , 144 . 31,772.74,678.1

760.41,004.81,308.62,249.67,815.2

(Change

1.629.918.754.9163.9

8.632.130.271.9247.4

1969 = 100)

564.7644.9837.8

1,102.82,589.7

543.7710.8907.3

1,250.94,060.4

in percent)

-2.714.229.931.6134.8

-7.430.727.637.9224.6

Clothingand

Footwear(0.110)

940.71,012.71,397.81,869.94,100.8

992.91,127.61,631.02,108.56,657.9

12.47.738.033.8119.3

14.313.644.629.3215.8

OtherExpenses(0.254)

527.9645.3846.8

1,168.22,560.7

509.0744.3908.8

1,501.54,165.0

-5.122.331.237.9119.2

-9.946.222.165.2177.4

Source: General Bureau of Statistics.

- 44 - STATISTICAL APPENDIX

Table 18. Suriname: Employment by Sector 1/

(Number of employees)

Total

Mining

Manuf ac tur ing

Utilities

Construction

Trade

Transportation, storage andcommunication

Banking

Insurance

Other services

Government

1989

67.837

3,242

6,944

1,304

1,909

4,224

2,315

1,319

407

1,920

44,254

1990

66.053

3,242

6,279

1,292

1,644

4,303

2,051

1,359

407

1,920

43,558

1991

65.717

3,303

6,427

1,267

1,571

4,463

2,072

1,389

426

1,939

42,861

1992

66.020

3,303

6,501

1,205

1,571

4,542

2,051

1,409

459

2,118

42,861

Prel.1993

64.475

3,242

6,870

1,181

1,329

4,622

2,051

1,439

505

2,118

41,118

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

I/ Companies or entities with nine employees or more.

- 45 - STATISTICAL APPENDIX

Table 19. Suriname: Average Gross Labor Cost Per Employes

(Annual percentage changed

Total

MiningIndustryManufacturingConstructionTradeTransportation, storage ,and communication

BankingInsuranceOther servicesGovernment

Memorandum itemConsumer price index

(period average)

1989

8.8

8.816.87.911.7-0,5

7.21.76.7_.

11.5

0.8

1990

2 0

-2.42.16.38.111.6

13.04.410.729.6-3.0

21.8

1991

16.8

7.312.511.931.26.2

4.121.88.5-3.630.5

26.0

1992

22.5

17.626.423.021.728.1

20.714.413.015.824.5

43.7

Prel.1993

61.6

104.647.662.38.448.1

78.531.765.129.151.3

143.4

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

- 46 - STATISTICAL APPENDIX

Table 20. Suriname: Population Data

1989 1990 1991 1992 1993

(In thousands)

Total population(end of year)

Net migration (during year)Natural increase

(during year)

Rate of population increaseNatural rate of increase

403.1-3.3

7.5

(In.

1.11.9

403.7-6.2

6.8

percent)

0.11.7

404.2-6.0

6.5

0.11.6

405.9-5.4

7.1

0.41.7

404.8-7.6

6.5

-0.31.6

Source: General Bureau of Statistics.

- 47 - STATISTICAL APPENDIX

Table 21. Suriname: Central Government Operations

(In millions of

Revenues and grantsRevenuesGrantsBalance of payments support grantsBridging aidOther Dutch grantsOther grants

Expenditures and net lendingCurrent expenditures I/Net lendingCapital expenditures

Current account deficit (-)

Overall deficit (-)

Financing (net)Domestic and adjustmentsDomesticCentral bank (net)AdvancesBlocked counterpart balance of payments supportBlocked counterpart bridging aidBlocked counterpart PL-480Other deposits

Commercial banksBondsOther

AdjustmentsExternalDisbursementsAmortization I/Arrears I/

Memorandum item

1989

Suriname

931.7862.369.4

—41.819.87.8

1.317.01,214.7

15.486.9

-290.2

-385.3

385.3372.1411.0427.3469.5

—-41.8

—-0.4-21.3

—5.0-38.913.217.2-5.81.8

1990

guilders)

1.101.21,001.6

99.6

—51.836.311.5

1.286.21,165.2

24.896.2

-78.6

-185.0

1.85.0181.966.5

-373.0-321.1

—-51.8

—-0.157.1445.4-63.0115.43.19.5-4.3-2.1

1991

1.094.11,029.7

64.4

—11.934.518.0

1.729.51,672.8

18.238.5

-590.6

-635.4

635.4617.8625.0621.7633.3

---11.9

--0.3

-25.8

—29.1-7.217.617.0-16.216.8

1992

1.581.91,166.0415.9267.445.761.641.2

2.134.42,017.8

8.4108.2

-452.6

-552.4

552.4550.4118.4-64.1251.3-267.4-45.7

—-2.347.0134.41.1

432.02.018.9-26.69.7

1993

3.476.81,333.92,142.9802.938.3

1,142.2159.5

4.320.73,950.4

6.6363.7

-726.0

-843.9

843.91,071.31,370.91,165.31,732.2-534.8

0.3-16.0-16.4202.7

—2.9-299.5-227.416.4

-258.314.5

(In percent of GDP)

-38.9 -1,232.3

Revenues and grantsRevenuesGrants

Expenditures and net lendingCurrent expendituresNet lendingCapital expenditures

Current account deficit (-)

Overall deficit (-)Central Bank financingOther financing

Memo randum itemOverall deficit plus Central Bank

exchange losses (-)

34.431.82.6

48.644.80.63.2

-10.7

-14.215.8-1.6

-14.2

36.433.13.3

42,138.50.83.2

-2.6

-6.1-12.318.4

-6.1

30.228.41.8

47.746.10.51.1

-16.3

17.20.3

-17.5

31^523.28.3

42.140.20.22.2

1,1

-n.o-1.312.3

-11.8

32 612.520.1

40.537.00.13.4

-6,8

-7.910.9-3.0

-19.5

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

j./ Debt service on external debt and external arrears are valued at Sf 1.8 per U.S. dollar.

ccentrralBANKKS EXCHANGES LOSSES(-)

- 48 - STATISTICAL APPENDIX

Table 22. Suriname: Government Revenues and Grants

Total revenues and grants

Current revenues and grants

Current revenues

Tax revenuesDirect taxesIncome taxesIndividual income taxesWage taxSelf-employed income tax

Profit tax on companiesof which: bauxite companies

Wealth taxDividend taxRental value taxOtherFloat I/

Indirect taxesConsumption taxesLiquorBeerTobaccoLotteryEntertainmentMotor vehiclesMotor fuel

Taxes on international tradeCustoms dutyStatistical feesof which: bauxite companiesConsent rightsof which: bauxite companiesWood export taxExport and re-export taxes

Other taxesTax on alumina productionOther

Float I/

Nontax revenuesPension contributionsMedical fund contributionsOld age fund contributionsCentral bank profitsPost officeAdministrative fees, fines, etc.

Grants

Capital revenues

1989

(In millions of

931.7

912.7

843.3

528.5293.5259.4141.6134.86.8

117.8. . .0.33.80.48.725.1235.072.02.310.615.55.11.217.519.8169.4145.615.9

6.1

—1.81.91.50.4-8.3

314.840.917.518.3115.85.3

117.0

69.4

19.0

1990

Suriname guilders)

1.101.1

l.Ogl.O

981.4

622 :, 3355.8335.1153,0143.79.3

182.1m.o0.77,90.111,18.9

266.5104.113,815.829.75,61.318.019.8184.3157.818,65.46.21.8

—1.62.11.60,5

-23,9

359.140.217.1

19,1153.68.7

120,4

99.6

20«L

1991

1.094.1

1.088.7

1.024.3

746.0419.2397.1227.8209.318.5169.357.31.34.03.014.16.7

326.8133.410.514.325.74.71.619.157.5209.8177.522.95.07.41.6

—2.02.31.80.5

-18.7

278.346.919.424.190.98.688.4

64.4

LJL

1992

1.582,0

1.577.2

1.161.3

823.8436.4372.1251.5226.624.9120.626.21.72.11.611.151.5387.4160.614.19.726.04.23.430,672.6244.9216.021.94.85.31.2

—1.72.81.61.2

-20.9

337.551.522.526.5153.17.476.5

415.9

4.8

1993

3 476.8

3.471.8

1.328.9

879.9495.5596.6424.7391.433.3171.895.62.02.01.811.6

-114.6384.4170.814.616.431.45.24.534.863.9207.7176.424.05.37.11.60.1

6.13.42.7-0.3

449.070.427.238.4150.016.9146.0

2.142.9

5.0

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

I/ Includes the difference between total receipts for the tax group and the individual components reportedby collecting agencies.

- 49 - STATISTICAL APPENDIX

Table 23. Suriname: Government Revenues and Grants

Current revenues and grants

Current revenues

Tax revenuesDirect taxesIncome taxesIndividual income taxesWage taxSelf- employed income tax

Profit tax on companiesof which: bauxite companies

Wealth taxDividend taxRental value taxOtherFloat I/

Indirect taxesConsumption taxesLiquorBeerTobaccoLotteryEntertainmentMotor vehiclesMotor fuel

Taxes on international tradeCustoms dutyStatistical feesof which: bauxite companiesConsent rightsof which: bauxite companiesWood export ta*Export and re-export taxes

Other taxesTax on alumina productionOther

Float I/

Nontax revenuesPension contributionsMedical fund contributionsOld age fund contributionsCentral bank profitsPost officeAdministrative fees, fines, etc.

Grants

Capital revenues

Taxes on imports

1989

(In percent of GDP)

34.4

33.7

31.1

19.510.89.65.25.00.34.3-„

—0.1,„

0.30.98.72.70.10.40.60.2

—0.60.76.35.40.6• —

0.2

——0.10.10.1

—-0.3

11.61.50.60.74.30.24.3

2.6

0.7

(In percent of imports)

4.5

1990

36.4- 1 *

35.7

32.4

20.611.811.15.14.70.36.03.7

—0.3

—0.40.38.83.40.50.51.00.2

—0.60.76.15.20.60.20.20.1

—0.10.10.1

—-0.8

11.91.30.60.65.10.34.0

3.3

0 2

3.4

1991

30.2

30.1

28.3

20.611.611.06.35.80.54.71.6

—0.10.10.40.29.03.70.30.40.70.1

—0.51.65.84.90.60.10.2--

—0.10.1—

—-0.5

7.71.30.50.72.50.22.4

1.8

JL1

3.6

1992

lid

31.4

23.1

1L18.77.45.04.50.52.40.5

———0.21.07.73.20.30.20.50.10.10.61.44.94.30.40.10.1

———0.1

—

-0.4

6 71.00.40.53.10.11.5

8.3

0.1

2.8

1993

32.6

32.6

12.5

8.J4.65.64.03.70.31.60.9

———0.1-1.13.61.60.10.20.3

——0.30.61.91.70.2

—0.1

———0.1

———

1 20.70.30.41.40.21.4

20.1

_.

0.8

Source: Statistical Appendix Tables 8, 22 and 31.

I/ Includes the difference between total receipts for the tax group and the individual components reportedby collecting agencies.

Total revenues and srents

- 50 - STATISTICAL APPENDIX

Table 24. Suriname: Central Government Expenditures

1989 1990 1991 1992 1993

(In millions of Suriname guilders)

Total expenditures and net lending

Current expendituresWages and salariesof which: allowances

Current transfersPrivate entitiesPublic entities subsidies and tariffWelfare and social servicesPensions to civil servants \/Advances to medical funds 2/WelfareHealthEducation

InterestDomesticExternal 3/

Goods and servicesOut of blocked accountsOut of European Communities grantsOut of Dutch grantsOther

Net lending

Capital expendituresOut of European Communities grantsOut of Dutch grantsOther

Memorandum itemMilitary expenditures

Total expenditures and net lending

Current expendituresWages and salariesCurrent transfersPublic entitiesOther

InterestGoods and services

Net lending

Capital expenditures

1.317.0

1.214.7541.4118.9239.28.0

subsidies 30.9200.343.836.065.024.131.4138.9134.64.3

295.2

—1.112.8281.3

15.4

81,95.81.479.7

80.0

(In percent of GDP)

48.6

44.820.08.81.17.75.110.9

0.6

3.2

1.286.2

1.165.2530.9130.9247.20.839.7206.750.040.051.338.327.1139.7134.35.4

247.4

—1.224.7221.5

24.8

968.46.281.6

85.3

42J

38.517.58.21.36.94.68.2

0.8

3,2

1.729.5

1.672.8645.2139.7494.3

—86.8407.561.058.0172.483.232.9172.8166.95.9

360.5

—0,723.5336.3

18.2

38.56.05.926.6

113.8

47.7

46.117.813.62.411.24.89.9

0.5

1.1

2.134.4

2.017.8886.9188.7421.4

—76.8344.6107.359.7142.214.920.5202.8188.514.3506.7

—1.632.2472.9

2 4

108.29.17.691.5

116.1

42 5

40.217.78.41.56.94.010.1

0.2

2 2

4.320.7

3.950.41,163.7253.9742.8

—175.5567.2104.252.8258.898.652.8283.6219.264.4

1,760.4306.738.8668.2746.7

6^6

363.785.3167.0111.4

162.3

40 5

37,010.97.01.65.32.716.5

o !

3.4

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

I/ Relates to payments made directly to those eligible to receive pensions.2/ Relates to payments made directly to providers of medical services.3/ Interest on external debt is valued at Sf 1.8 per U.S. dollar.

- 51 - STATISTICAL APPENDIX

Table 25. Suriname: Central Government Subsidies,Net Transfers, and Lending

fin millions

Total

Social services and transfersPensions to civil servantsAdvances to Medical FundWelfareOld Age Fund (AOV)Child Allowance Fund (AKB)Welfare FundOther welfare

HealthEducationOf which: University

Subsidies and lending topublic entities

SubsidiesSML WageningenShipping companySugar companyDairy plantElectricity companySurexcoWater supplyOther

LendingGrassalcoPalm oil estatesPara industriesDairy plantSuriname timberState OilSurexcoOther

Subsidies to private entities

1989

of Suriname

254.8

200.443.836.065.146.510.85.02.824.131.418.5

46.431.010.73.78.0--6.3

--2.315.4

1.41.00.62.45.7

4.3

8.0

1990

guilders)

272.1

206.850.040.051.433.910.64.12.838.327.111.7

64.539.75.71.819.14.26.6

--2.324.80.31.8

--1.6

13.77.4

0.8

1991

512.5

407.561.058.0172.495.567.95.93.183.232.915.8

105.086.713.41.711.16.04.747.1

--2.718.35.98.1

--1.5

2.8

1992

429.8

344.6107.359.7142.2110.924.35.31.714.920.511.3

85.276.810.010.216.22.5

' --36.0

--1.98.4--

4.0----

1.5----

2.9

1993

749.4

567.3104.252.8258.8178.011.425.344.198.652.845.9

182.1175.5

--6.613.418.577.021.934.73.46.6--------2.0----

4.6

Sources: Ministry of Finance; and Fund staff estimates.

- 52 - STATISTICAL APPENDIX

Table 26. Suriname: Central Government Debt

1989 1990 1991 1992 1993

fin millions of Suriname guilders: end of nerio

Domestic debtBanking system (net)Central BankCommercial banks

Other I/

CIn millions

External debtCurrent debtArrears

Total debtDomestic debtExternal debt 2/

2.949.0 3,2,940.9 2,2,903.7 2,

37.2

078.5625.0530.794.3

8.1 453.5

of U.S. dollars: end

99.697.32.3

(In percent of

110.023.7

Sources : Ministry of Finance ; Central Bankestimates .

101.3100.21.1

GDP)

125.5102.123.4

3.674.43,220.93,152.4

68.5453.5

of period)

117.8107.310.5

127.4101.825.5

of Suriname; and

•d)

3.791.7 53,203.8 43,088.3 4115.5587.9

124.1108.116.0

101.076.025.0

Fund staff

.259.7,571.8,253.6318.2687.9

126.3102.224.1

75 149.425.7

\J Mainly government bonds.2/ Based on a GDP in U.S. dollars estimated by the staffs of the World Bank

and the Fund, using an average of prevailing exchange rates including theparallel market rate.

133.77

- 53 -

STATISTICAL APPENDIX

Table 27. Suriname: Summary Accounts of the Banking System

(In millions of Suriname guilders)

1989 1990December 31

1991 1992 1993

I. Monetary Authorities

Net international reservesAssets I/Liabilities 2/

Net other foreign assets

Net domestic assetsNet claims on the public sectorNet central government (budget)Assets 3/LiabilitiesBlocked Account

Net other central governmentLiabilities

Credit to the private sectorOfficial capital and surplusExchange lossesNet unclassified assetsAssets 2/Liabilities

Counterpart unrecruited foreign exchangeAllocation of SDKsValuation adjustment, IMF accountsValuation adjustment, gold andforeign exchange I/

Net liabilities to commercial banksCurrencyDemand depositsOther liabilities

Liabilities to the private sectorCurrency in circulation 3/Time deposits

Net international reservesAssetsLiabilities

Net other foreign assets

Monetary reserves and currency holdings

Net domestic assetsNet claims on the public sectorNet central government (budget)AssetsLiabilities

Net decentralized agenciesAssets

Credit to the private sectorNet unclassified assetsAssetsLiabilities

4 551.7-8.2

-70.9

2.730.22,895.02,903.72,948.4

-2.9-41..-8..7-8..715.2

-34..5

—-145.5

76.3-221.7

99.918.21.3

80.5

1.296.958.3

1,241.1-2.4

1.306.0874.2431.8

II. Commercial

20.221.2-1.1

-112.4

1.299.4

1.289.4117.637.2

-22.880.480.4

1,145.526.3558.8-532.4

66.670.6-3.9

-64.5

2.506.92.520.32,530.72,627.3

-3.0-93.6-10.4-10.415.3

-34.5

—5.884.8-78.9

91.619.7-2.0

74.0

1.339.276.3

1,263.2-0.3

1.078.2958.2120.0

Banks

27.727.7

-135.5

1.339.5

1<705>5

'lS3.494.3117.7-23.589.289.2

1,453.868.3299.2-230.9

-23.045.3-68.4

-68.1

3.153.63,142.53,152.53,260.6

-2.7-105.5

-9.9-9.915.4

-34.5

—30.2139.8-109.7

88.519.8-1.6

70.3

1.767.587.5

1,680.4-0.4

1.206.51,143.0

63.5

26.226.2

-148.3

1.767.8

2.094.2185.968..5108..0-39.5.117.4.117.4.

1,809..498.9270.5-171.6

-51.64.9

-116.4

-24.3

3.394.23,078.43,088.43,511.9

-5.0-418..6

-9..9-9..91.1

-3.4.538.9310.3169.4-140.9

15,919.0-0.9

37.8

1.912.890.9

1,823.5-1.6

1.349.61,347.2

2.4

16 216.2

-146.9

1.914.4

2.798.2199.5115.5141..0-25.584.084.0

2,464.1134.6208.2-73.6

.3.809.03,498.5-7,307.5

-1.653.3

12.801.24,243.84,253.65,244.1-21.4-969.1

-9.9-9.91.5

-34..51,271.27,319.27,646.3-327.0

1.621.619.3-1.1

1,603.4

3.047.7186.2

2,865.1-3.5

2.669.62^669.6

•"-

101.4473.1-371.7

-6.561.1

3.051.3

10.943.9369

318.2421.2-103.0

50.850.8

4,248.26,326.78,639.8-2,313.1

60.0.............

- 54 -

STATISTICAL APPENDIX

Table 27. Suriname: Summary Accounts of the Banking System (Concluded)

(In millions of Suriname guilders)

Liabilities to monetary authorities

Liabilities to the private sectorDemand depositsTime, savings and foreign currencydeposits

Other liabilitiesPrivate capital and surplus

Net international reservesAssets I/Liabilities 2/

Net other foreign assets

Net domestic assetsNet claims on the public sectorNet central government (budget)Assets 3/LiabilitiesBlocked account

Net other central governmentLiabilities

Net decentralized agenciesAssets

Official capital and surplusCredit to the private sectorExchange lossesNet unclassified assetsAssets 2/Liabilities

foreign exchangeAllocation of SDK'sValuation adjustment, IMF accountsValuation adjustment, gold andforeign exchange I/

Liabilities to the private sectorMonetary liabilities (money)Currency in circulation 3/Demand deposits

Other liabilitiesTime, savings and foreign currencydeposits

Other liabilitiesPrivate capital and surplus

Memorandum itemExternal arrears included above

1989

2.4

2.495.11,270.0

1,026.222.5176.4

III. Banking

63.672.9-9.3

-183.2

4.019.53,012.62,940.93,008.4-25.7-41.8-8.7-8.780.480.4-34.5

1,160.6

-119.2634.9-754.2

99.918.21.3

80.5

3.801.12,144.1874.2

1,270.01,480.5

1,458.022.5176.4

8.0

1990

OL3

2.936.81,268.3

1,405.917.2245.4

System

94.398.2-3.9

-200.0

4.212.42,703.72,625.02,745.0-26.5-93.6-10.4-10.489.289.2-34.5

1,469.1

—74.1383.9-309.8

91.619.7-2.0

74.0

4.015.12,226.5958.2

1,268.31,543.1

1,525.917.2245.4

3.9

December1991

0

1^707.6

1,718.018.2

295.9

3.271.6-68.4

-216.4

5.247.83,328.43,220.93,368.7-42.3-105.5-9.9-9.9117.4117.4-34.5

1,824.8

—129.1410.3-281.2

88.519.8-1.6

70.3

4.946.12,850.61,143.01,707.61,799.6

1,781.418.2295.9

37.5

1992

1.6

4.579.51,818.4

2,366.525.5369.1

-35.381.1

-116.4

-171.1

6.192.33,277.93,203.83,652.9-30.4-418.6-9.9-9.984.084.0-34.5

2,465.238.9444.9377.6-67.2

55 219.0-0.9

37.8

5.929.13,165.61,347.21,818.42,394.5

2,368.925.5369.1

57.1

1993

3 5

7.531.92,865.1

3,999.923.6643.3

-3.707.6

3,971.6-7,679.2

-8.214.4

23.745.14,612.84,571.95,665.3-124.3-969.1-9.9-9.950.850.8-34.5

4,249.81,271.213,645.916,285.1-2,640.2

1.621.619.3-1.1

1,603.4

10.201.55,534.72,669.62,865.14,023.5

3,999.923.6643.3

4,055.0

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

\/ Gold is valued at market prices.2/ Includes external payments arrears.3/ Includes Central Government issue of coins.

3.739.6

Counterpart unrequited

- 55 - STATISTICAL APPENDIX

Table 28. Suriname: Banking System Liabilities to thePrivate Sector, End of Period

(Annual

Total liabilities

Money and quasi -moneyMoneyCurrency in circulationDemand deposits

Quasi -moneyTime, savings, and foreigncurrency deposits

Private capital and surplus

Other liabilities

(In

Total liabilities

Money and quasi -moneyMoneyCurrency in circulationDemand deposits

Quasi -moneyTime, savings, and foreigncurrency deposits

Private capital and surplus

Other liabilities

1989

percentage change)

17.8

18.211.210.911.430.2

30.2

13 4

3

percent of GDP)

141.2

133.879.632.547.254.2

54.2

6.6

0.8

1990

5.6

4 23.89.6-0.14.7

4.7

39J,

-23.8

132.6

124.073.631.741.150.4

50.4

8.1

0.6

1991

23.2

23.428.019.334.616.7

16.7

20.6

6

136.5

127.878.631.547.149.1

49.1

8.1

P 5

1992

19.9

19.511.117.96.533.0

33.0

24.7

40.1

118.2

110.363.126.936.247.2

47.2

7.4

0 5

1993

72.1

72 174.898.257.668.8

68.8

74.3

^LJ.

95 6

89.351.925.026.837.5

37.5

6 0

P l

Source: Statistical Appendix Table 27.

- 56 - STATISTICAL APPENDIX

Table 29. Suriname: Distribution of Commercial Bank Creditby Destination I/

December

1989 1990 1991 1992 1993

(In millions of Suriname guilders)

Total credit outstanding 1.284.3

AgricultureFisheryForestryMiningManuf ac tur ingConstructionUtilitiesCommerceTransport andServicesHousingOther

AgricultureFisheryForestryMiningManuf ac tur ingConstructionUtilitiesCommerceTransport andServicesHousingOther

225.46.94.146.8123.538.8

346.6communications 27.0

59.7166.2239.3

(In percent

17.60.50.33.69.63.0

27.0communications 2 .

4.612.918.6

1.659.1

227.66.612.969.8175.457.1

457.633.678.0205.4335.1

of total)

13.70.40.84.210.63.4

27.62.04.712.420.2

2.032.7

262.610.215.774.0209.381.0

546.354.996.3258.5423.9

12.90.50.83.610.34.0--

26.92.74.712.720.9

2.684.4

313.618.07.585.7252.8136.0

856.473.3165.5352.9422.7

11.70.70.33.29.45.1

31.92.76.213.115.7

3.319.7

375.524.610.137.6358.2171.71.3

1,160.692.0201.4396.6490.1

11.30.80.31.110.85.2--

35.02.86.111.914.7

Source: Central Bank of Suriname.

I/ Figures may differ from those in Statistical Appendix Tables 27 and 30because they were obtained from different sources.

- 57 - STATISTICAL APPENDIX

Table 30. Suriname: Loans and Deposits of Commercial Banks by Interest Rates I/ 2/

Lending rateUp to 22-33-44-55-66-77-88-99-10Over 10

Total

Total interest earningsAverage rate

Deposit rateUp to 22-33-44-55-66-77-88-99-10Over 10

Total

Total interest paymentsAverage deposit rate

1989

(In thousands of

26,941

30,0194,13468,20051,33778,153315,382513,967192,636

1.280.769

118,0229.21

1,364,31213,595572,307114,438132,54681,99290,16437,231

16

2.406.601

48,0824.61

1990

Suriname guilders )

23,944

30,0121,83956,06078,45898,305390,440669,261 1,262,333

1.610.652 1.

151,7349.42

1,355,014 1,9,895

796,055105,733173,288150,346149,75038,240

2.778.321 3.

66,6524. 68

1991

22,316

—30,0064,12135,29398,42173,630301,348046,824375,453

987.412

194,8239.80

826,247172

826,523261,260238,503209,561181,60815,841

559.715

.82,3964.75

1992

22,2193,87730,00013,71138,50883,414121,889363 , 107

1,515,544427,036

2.619.305

255,4299.75

1,965,555150

1,444,225221,851203,754183,594160,288135,384

4.314,801

107,2044.56

1993

267

—5,0001,36738,32415,07416,44487,526442,744

2,017,391

2.624.137

346,58213.21

3,040,952551,799837,983117,138251,043210,566316,157136,35897,640187,675

5.747.311

147,7195.44

(In percent of total)

Lending rateUp to 22-33-44-55-66-77-88-99-10Over 10

Deposit rateUp to 22-33-44-55-66-77-88-99-10

2.1— :

2.30.35.34.06.124.640.115.0

56.70.623.84.85.53.43.71.5

—

1.5•1.90.13.54.96.124.241.616.3

48.80.428.73.86.25.45.41.4

—

1.1

—1.50.21.85.03.715.252.718.9

51.3

—23.27.36.75.95.10.4--

0.80.11.10.51.53.24.713.957.916.3

45.6

—33.55.14.74.33.73.1--

——0.20.11.50.60.63.316.976.9

52.99.614.62.04.43.75.52.41.7

Source: Central Bank of Suriname.

I/ Rates are in percent per annum.2/ Figures may differ from those in Statistical Appendix Tables 27 and 29 because they were obtained from

different sources.

- 58 - STATISTICAL APPENDIX

Table 31. Suriname: Summary Balance of Payments I/

(In millions of U.S. dollars)

Memorandum itemCurrent account balance aspercentage of GDP -3/

1989 1990 1991

40.1 8.2 -16.6

1992

3.6

1993

Current accountTrade balanceMerchandise exports (f.o.b.)

Of which: bauxite sectorMerchandise imports

Services and private transfers (net)Transportation and travelOther nonf actor servicesFactor incomeUnrequited private transfers

Official transfers (net)

Capital accountMedium- and long-term capital (net)OfficialPrivate

Short-term capital (net) 2/

Errors and omissions

Overall balance

Net official reserves (increase -)Of which: external payments arrears

167.2143. 5620.3488.6-476.8-13.4-40.6-1.2-6.835.337.1

-170.6

-172.2-0.1

-172.11.6

^±

-6.3

JL3L2.2

35.4-7.7550.7404.7-558.4-14..4-48..91.2

-8..641.9.57..5

-20.4-22.9-4.1

-18.82.5

-1.9

13.1

ZlLl-2.3

-76.9-117.9462.3301.8-580.2

6.1-48.013.7

-15.155.534.9

22.611.6-3.815.411.0

4.1

-50.2

50 218.8

18.0-110.8490.0284.4-600.825.6-38.915.4

-10.960.0103.2

-28.3-44.8-6.8-38.016.5

-5.9

-16.2

16 .211.0

5.9-77.2

.443.3254.5-520.536.1-35.927.0-13.258.247.0

HL7J,-37.2-4.8-32.420.1

:o

-16.2

16.216.0

1.2

Source: Statistical Appendix Table 32.

I/ On an accrual basis, there has been a large and rapidly growing discrepancy between imports as recordedby~~customs, and payments as recorded by the Central Bank. It is estimated that "own funds" imports are two-thirds financed by under-reporting of exports and one-third financed by under-reporting of receipts of servicesand private transfers. To correct for this problem, cash basis exports as reported by the Central Bank havebeen increased for 1989, 1990, 1991, 1992, and 1993 by US$72 million, US$86 million, US$117 million, million, and US$153 million, respectively (two thirds of "own funds" imports of US$109 million, US$129 million,US$176 million, US$225 million, and US$230 million, respectively). Similarly, receipts of services and privatetransfers have been increased by US$36 million, US$43 million, US$59 million, US$75 million, and US$77 million,respectively.2/ Includes changes in the commercial banks' net external position.3/ Based on a GDP in U.S. dollars estimated by the staffs of the World Bank and the Fund, using an average

of prevailing exchange rates including the parallel market rate.

-59 - STATISTICAL APPENDIX

Table 32. Suriname: Balance of Payments

(In millions of U.S. dollars)

Current accountCreditDebit

Goods, services and incomeCreditDebit

Trade balanceExports (f.o.b.)Of which: bauxite sector

Imports (f.o.b. ) 2/Of which: oil imports

Services and incomeTransportation and insuranceCreditDebit

TravelCreditDebit

Other private servicesCreditDebit

Government servicesCreditDebit

Labor incomeDebit

Investment incomeCreditDebit

Unrequited transfersCreditDebit

Private transfersCreditDebit

Subsistence payments 2/CreditDebit

Private grantsCreditDebit

Migrants ' transfersCreditDebit

Workers' remittancesDebit

Official transfersCredit 3/

1989

167.2749,8-582.7

94.9670.2-575.4

143.5620.3488.6-476.8-87.2

-48.6-35.03.9

-38.9-5 . 64.4

-10.09.036.4-27.4-10.24.2

-14.4-0.8-0.8-6.01.0-7.0

72.379.6-7.3

35.342.6-7.3

28.432.3-3.98.99.2-0.3-1.61.1-2.7-0.4-0.4

37.137.1

1990

35.4711.8-676.5

-64.0603.6-667.6

-7.7550.7404.7-558.4-106.9

-56.3-37.33.5

-40.8-11.60.6

-12.212.243.1-30.9-11.03.5

-14.5-1.2-1.2-7.42.2-9.6

99.4108.3-8.9

41.950.8-8.9

34.138.8-4.710.411.1-0.7-2,20.9-3.1-0.4-0.4

57.557.5

1991

-76.9628.1-705.0

-167.3526.9-694.2

-117.9462.3301.8-580.2-99.4

-49.4-32.54.7

-37.2-15.50.8

-16.324.853.7-28.9-11.14.0

-15.1-1.7-1.7-13.41.4

-14.8

90.4101.2-10.8

55.566.3-10.8

43.949.0-5.113.715.1-1.4-1.22.2-3.4-0.9-0.9

34.934.9

1992

18.0743.3-725.3

-145.2565.7-710.9

-110.8490.0284.4-600.8-96.2

-34.4-29.72.7

-32.4-9.22.1

-11.325.267.4-42.2-9.82.8

-12.6-1.6-1.6-9.30.7

-10.0

163.2177.6-14.4

60.074.4-14.4

46.049.9-3.918.121.9-3.8-3.22.6-5.8-0.9-0.9

103.2103.2

1993

5.9652.3-646,4

-99.3537,8-637.0

-77.2443,3254.5-520.5-70,8

-22,0-40.711.9-52.64.97.6-2.734.373.0-38.6-7.41.9-9.2-1,9-1.9-11.30.1

-11.4

105.2114.5-9.3

58.267,5-9.3

40,142,4-2,318.721.3-2.60.43.8-3,4-1.0-1.0

47.047.0

- 60 - STATISTICAL APPENDIX

Table 32. Suriname: Balance of Payments I/ (Concluded)

(In millions of U.S. dollars)

Capital account

Medium- and long-term capitalCreditDebit

OfficialCreditDebit

Long-term loansCreditDebit

Other governmentDebit

1989

-170.6

-172.234.5

-206.7

-0.19.6-9.7

0.29.6-9.4-0.3-0.3

1990

-20.4

-22.931.5-54.4

-4.15.3-9.4

-3.65.3-8.9-0.5-0.5

1991

22.6

11.652.7-41.1

-3.89.4

-13.2

-3.39.4

-12.7-0.5-0.5

1992

-28.3

-44.824.2-69.0

-6.810.6-17.4

-6.810.6-17.4

1993

-17.1

-37.224.9-62.1

-4.86.3

-11.1

-4.86.3

-11.1

Private capital (includingdirect investment)CreditDebit

Short-term capitalOfficialPrivate, nonbankCommercial banks 4/

Errors and omissions

Overall balance

Change in net official reserves(increase -)

Of which: external paymentsarrears

-172.124.9

-197.0

1.60.1-7.28.7

-18.826.2-45.0

2.50.1-3.45.8

15.443.3-27.9

11.0

-6.3

6.3

2.2

-13.1

-2.3

-38.013.6-51.6

16.50.412.23.9

-16.2

-32.18.

-51.

20.1

27.9-7.9

il.o 16.0

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

I/ On an accrual basis, there has been a large and rapidly growing discrepancy between imports as recordedby customs, and payments as recorded by the Central Bank. It is estimated that "own funds" imports are two-thirds financed by under-reporting of exports and one-third financed by under-reporting of receipts of servicesand private transfers. To correct for this problem, cash basis exports as reported by the Central Bank havebeen increased for 1989, 1990, 1991, 1992, and 1993 by US$72 million, US$86million, US$117 million, US$150million, and US$153 million, respectively (two thirds of "own funds" imports of US$109 million, US$129 million,US$176 million, US$225 million, and US$230 million, respectively). Similarly, receipts of services and privatetransfers have been increased by US$36 million, US$43 million, US$59 million, US$75 million, and US$77 million,respectively.2/ Includes parcel imports of US$30 million in 1989, US$36 million in 1990, US$45 million in 1991, US$45

million in 1992 and US$38 million in 1993.3/ Includes Dutch bridging and humanitarian aid.A/ Includes changes in the commercial banks' net external position.

02.- -0.9

13.1 50..2

4.1

7.63.4

-5.9

16.2510.

18.8

5.0

-.16.

16.2

16.0

- 61 - STATISTICAL APPENDIX

Table 33. Surinaine: International Reserves I/

December 31

(In

'Banking system (net)Assets I/Liabilities 3J

Monetary au thorites (net)Assets I/Liabilities 3/

Commercial banks ..(net.)AssetsLiabilities

Total net reservesMonetary authorities i/3/Commercial banks

Gross reservesOfficial I/(months of imports)

Banking system I/(months of imports)

1989

millions of Suriname

63.672.9-9.3

43.551.7-8.2

20.221.2-1.1

(In millions of U.S.

35,224.411.3

29.00.740.91.0

1990

guilders)

94.398.2-3.9

66.670.6-3.9

2LJ.27.7

--

dollars)

52.837.315.5

39.60.955.11.2

1991

I/

3 271.6-68.3

-23.445.3-68.4

26.226.2

--

' LJl"-12.914.7

25.40.540.10.8

1992

8l!l-116.4

-51.564.9

-116.4

16.216.2

--

-19.8-28.99.1

36.40.745.50.9

1993

-3.707.63,971.6-7,679.2

-3.809.03,499.5-7,308.5

101.4473.1-371.7

-45 !l1.2

41.41.047.01.1

Source: Central Bank of Suriname.

I/ Gold holdings are valued at market prices.2/ The amounts in Suriname guilders are derived from the U.S. dollars amounts

using the official rate (Sf 1.785 per U.S. dollar) for the years 1989-92 and thefree rate (Sf 84.48 per U.S. dollar) for 1993.

3/ Adjusted for external payments arrears.

.35.33

- 62 - STATISTICAL APPENDIX

Table 34. Suriname: Exports by Major Categories

1989 1990 1991 1992

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

I/ Includes estimates of under-reported exports.

1993

an millions of U.S. dollars)

TotalBauxite derivativesAluminaAluminum

RiceShrimp and fishLumberBananas and plantainsCrude oilOther I/

TotalBauxite and derivativesAluminaAluminum

RiceShrimp and fishLumberBananas and plantainsCrude oilOther I/

620.488.437.51.31.33.2.10.6.48.

an percent)

3634834210

100.078.70.8.5.5.0.1.1.7.

853144607

550.7404.354.50.25.37.0.10.5.66.

716447392

100.073.64.9.4.6.0.1.1.12.

532681910

462.330126140223209689

.8

.7

.1

.0

.8

.7

.1

.2

.7

100.0655684702119

.3

.6

.7

.8

.1

.1

.0

.3

.4

490284240442625194

137

.0

.4

.1

.3

.5

.5

.5

.7

.6

.6

100.0584995502028

.0

.0

.0

.4

.2

.3

.0

.9

.1

44325421935265028595

1005749761101121

.5.5.0.8.4.2.5.2.7

.0

.4

.5

.9

.1

.4

.5

.9

.2

.6

3

- 63 - STATISTICAL APPENDIX

Table 35. Suriname: Value, Volume, and UnitPrice of Principal Exports

(Value in millions of U.S. dollars; volume in thousandsof metric tons: and t

AluminaValueVolumeUnit price

AluminumValueVolumeUnit price

RiceValueVolumeUnit price

Bananas and plantainsValueVolumeUnit price

ShrimpValueVolume \/Unit price 2/

LumberValueVolume 3/Unit price 4/

FishValueVolume I/Unit price 2/

Crude oilValueVolume 5/Unit price 6/

Sources: General Bureau of Statistics; Surinam

J./ In thousands of kilograms.2/ U.S. dollars per kilogram.3/ In thousands of cubic meters.4/ U.S. dollars per cubic meter.5/ In thousands of liters.£/ U.S. dollars per thousand liter.

mit price in U.S. d

1989

437.31,553.4 1281.5

51.426.1

1,968.3 1

31.880.7393,6

10.228.8354.0

32.02,499.7 3

12.8

2.412.0200.7

. . . 1..3893.4 11,4

6.165,54092.3

ie Bauxite Institute

1990

354.1,473.1240.4

50.631.9

,587.6

25.464.9391.9

10.328.3364.2

35.7,312.910.8

0.72.2

305.6

. 1.7,013.3

1.7

5.958,198.101.1

; and Fund

tori)

1991

261.71,449.1180.6

40.126.3

1,523.0

22.052.7416.7

9.128.2323.8

32.23,065.4

10.5

0.72.2

305.6

0.7692.11.0

6.265,00294.8

1992

240.11,513.6158.6

44.334.5

1,284.5

26.553.4496.2

9.730.2322.8

23.11,934.3

11.9

1.56.1

248.0

2.5913.82.7

4.635,256131.9

Prel.1993

219.51,426.1153.9

35.028.7

1,219.5

26.866.6402.9

8.528.2300.0

47.83,262.0

14.6

1.12.0

560.2

2.61,636.0

1.6

5.242,343122.2

staff estimates.

- 64 - STATISTICAL APPENDIX

Table 36. Suriname: Imports (c.i.f.) of Hydrocarbons

1989 1990 1991 1992 1993

TotalGasolineKeroseneDieselHeavy fuelLiquified gasLubricantsAsphalt

TotalGasolineKeroseneDieselHeavy fuelLiquified gasLubricantsAsphalt

Value in percent ofGDP at market prices

(In thousands

3.364523147

1,0381,445158494

(In millions of

87.214.54.429.825.85.57.10.1

I/ 20.9

of barrels')

3.332534156

1,0421,382160535

U.S. dollars')

106.919.46.236.929.36.28.70.2

24.7

3.474556198

1,1031,3751666313

99.417.96.235.022.86.111.00.3

21.5

3.719582150

1,1451,5981784521

96.216.94.534.025.56.67.81.0

19.4

2.934476113944

1,268102246

70.812.49.925.515.63.83.20.4

14.4

Sources: Central Bank of Suriname; Ministry of Natural Resources; and Fundstaff estimates.

I/ Based on a GDP in U.S. dollars estimated by the staffs of the World Bankand the Fund, using an average of prevailing exchange rates including theparallel market rate.

- 65 STATISTICAL APPENDIX

Table 37. Suriname: Imports by Economic Use I/

Total

Hydrocarbons (f.o.b.)

Raw materialsOf which for:agriculture and fisheriesfood, beverages, and tobaccoconstructiontextilesother industries

Consumer goodsFood products 'Beverages and cigarettesHome appliancesClothes and footwearCleaning productsPharmaceuticals and cosmeticsRecreational itemsBicycles and mopedsPassenger cars and motorcyclesOther

Investment goodsTransport equipmentMachinery parts for bauxite sectorOther

Total

Hydrocarbons ( f . o . b . )

Raw materialsOf which for:agriculture and fisheriesfood, beverages, and tobaccoconstructiontextilesother industries

Consumer goodsFood productsBeverages and cigarettesHome appliancesClothes and footwearCleaning productsPharmaceuticals and cosmeticsRecreational itemsBicycles and mopedsPassenger cars and motorcyclesOther

Investment goodsTransport equipmentMachinery parts for bauxite sectorOther

' 1989

(In millions of U.

476.8

71.1

222.2

7.917.322.67.9

166.6

!L228.14.817.06.72.99.56.11.913.89.0

83.835.17.141.6

(In percent of

100.0

14,1

46 6

1.73.64.71.634.9

20.95.91.03.61.40.62.01.30.42.91.9

ILd7.41.58.7

1990

S. dollars)

558.4

87.3

238.4

11.621.432.39.0

164.1

142.338.86.927.911.02.713.310.42.416.512.4

90.530.48.151.9

total)

100.0

11,6

42,7

2.13.85.81.6

29.4

2L16.91.25.01.90.52.41.90.42.92.2

16,25.41.59.3

1991

580.2

90.2

211.9

7.016.836.37.9

143.9

164.443.89.323.214.53.914.010.91.828.514.4

113.748.18.657.0

100.0

1L1

36,5

1.22.96.31.424.8

28,37.51.64.02.50.72.41.90.34.92.5

1L18.31.59.8

1992

600.8

83.3

225.7

9.742.444.87.4

121.3

186.930.111.025.812.6.1.814.938.83.137.411.2

104.935.37.761.9

100.0

13 9

37

1.67.17.51.220.2

31,15.01.84.32.10.32.56.50.56.21.8

17,55.91.310.3

1993

520.5

67.9

183.5

8.641.743.45.684.2

179.424.511.623.412.41.313.442.33.037.59.9

89.829.16.154.6

100.0

13 0

35 2

1.78.08.31.116.2

M4.72.24.52.40.32.68.10.67.21.9

17.35.61.210.5

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

I/ Net of re-exports.

- 66 - STATISTICAL APPENDIX

Table 38. Suriname: Destination of Exports

1989 1990 1991 1992 1993

an millions of U.S. dollars)

Total exportsUnited StatesNetherlandsNorwayUnited KingdomBrazilJapanFranceGermanySwedenFrench Guiana, Guadeloupe,Martinique, and NetherlandsAntilles

Other countries

(In

Total exportsUnited StatesNetherlandsNorwayUnited KingdomBrazilJapanFranceGermanySwedenFrench Guiana, Guadeloupe,Martinique, and NetherlandsAntilles

Other countries

620.383.0154.7181.322.838.332.49.617.1

--

5.276.0

percent

100.013.424.929.23.76.25.21.52.8--

0.812.2

550.762.7158.8195.812.026.437.325.70.10.3

2.628.9

of total)

100.011.428.835.62.24.86.84.7--0.1

0.55.2

462.363.9122.6148.910.732.331.911.56.62.0

4.227.7

100.013.826.532.22.37.06.92.51.40.4

0.95.9

490.063.1131.1158.413.429.330.814.26 . 90.8

3.638.3

100.012.926.832.32.76.06.32.91.40.2

0.77.8

443.354.6117.0143.210.026.228.819.46.21.8

3.431.8

100.012.326.432.32.55.96.54.41.40.4

0.87.2

Sources: General Bureau of Statistics; Central Bank of Suriname; and Fundstaff estimates.

- 67 - STATISTICAL APPENDIX

Table 39. Suriname: Origin of Imports I/

1989 1990 1991 1992 1993

an millions of U.S

Total importsUnited StatesNetherlandsGermanyJapanUnited KingdomItalyBrazilTrinidad and TobagoChinaHong KongTaiwan Province of ChinaFrench Guiana, Guadeloupe,Martinique, and NetherlandsAntilles

Other countries

(In

Total importsUnited StatesNetherlandsGermanyJapanUnited KingdomItalyBrazilTrinidad and TobagoChinaHong KongTaiwan Province of ChinaFrench Guiana, Guadeloupe,Martinique, and NetherlandsAntilles

Other countries

476.8208.895.75.819.97.19.324.345.01.07.44.2

17.730.5

percent of

100.043.820.11.24.21.51.95.19.40.21.60.9

3.76.4

. dollars)

558.4228.7131.411.515.86.61.223.951.31.95.95.3

29.845.2

total)

100.041.023.52.12.81.20.24.39.20.31.10.9

5.38.1

580.2222.6128.58.721.79.414.317.565.01.86.75.6

20.757.5

100.038.422.21.53.71.62.53.011.20.31.21.0

3.69.9

600.8274.5134.95.417.37.10.214.467.83.24.43.0

10.358.2

100.045.722.50.92.91.2--2.411.30.50.70.5

1.79.7

520.5235.1117.94.613.45.80.89.460.73.72.92.2

7.556.4

100.045.222.70.92.61.10.11.811.70.70.60.4

1.410.8

Sources: General Bureau of Statistics; Central Bank of Suriname; and Fundstaff estimates.

JL/ Net of re-exports.

- 68 - STATISTICAL APPENDIX

Table 40. Suriname: Trade Indices

(1990=100)

ExportsUnit valueVolume

ImportsUnit valueVolume

Terms of trade

1989

113.5102.2

92.194.7

123.1

1990

100.0100.0

100.0100.0

100.0

1991

83.695.5

96.8108.8

86.3

1992

79.798.7

96.8103.8

82.3

1993

77.996.5

94.2102.6

82.7

Sources: General Bureau of Statistics; Central Bank of Suriname; SurinameBauxite Institute; Ministry of Natural Resources; and InternationalFinancial Statistics.

- 69 - STATISTICAL APPENDIX

Table 41. Suriname: Public and Publicly GuaranteedExternal Debt Outstanding I/

(In millions of U.S. dollars at end of period)

1989 1990 1991 1992 1993

Total external debt

Medium- and long-term debtTo official creditorsInternational institutionsEIB/EECIDE

GovernmentsBrazilChinaTaiwan, Province of ChinaSouth KoreaUSA (PL 480)India

To private creditorsFinancial institutionsABN, NetherlandsABN-AMRO, NetherlandsABN-AMRO, MiamiChasebank, USARabobank, USAMantrust, USA

OtherIsuzu and Subaru, Japan

Short-term debtTo official creditorsVenezuela

To private creditorsFinancial institutionsABN, Houston

OthersApotex, Canada

154.4 162.7 194.2 206.1

165.4113.532.320.611.681.256.19.96.1

... 1.8

... 7.2

--... 51.9

43.29.124.80.83.02.43.1

... 8.78.7

... 8.81.71.77.14.94.92.2

... 2.2

207.4

145.6104.729.919.010.974.851.29.93.91.07.21.540.930.77.619.30.61.01.21.110.210.2

13.72.32.311.410.310.31.11.1

External payments arrears

Memorandum itemDebt as percent of GDP 2/

4.5 2.2 21.0 31.9 48.2

37.0 37.6 42.1 41<6 42.2

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

\J Data on external debt owed by the private sector are not available.2/ Based on a GDP in U.S. dollars estimated by the staffs of the World

Bank and the Fund, using an average of prevailing exchange rates includingthe parallel market rate.

- 70 - STATISTICAL APPENDIX

Table 42. Suriname: Exchange Rates I/

Suriname guilders per U.S. dollar Indices (1980 » 100) 2/Free Parallel Auction Economy Wide Nominal RealRate 3/ Rate 4/ Rate 5/ Average Rate 6/ Effective Effective

End of period Quarterly average

1989

1990

1991

1992

1993

1994

Mar.JuneSept.Dec.

Mar.JuneSept.Dec.

Mar.JuneSept.Dec.

Mar.JuneSept.Dec.

Mar.JuneSept.Dec.

Mar.JuneSept.

14.8... 10.3

12.313.9

15.517.117.817.5

14.918.418.619.1

21.923.324.030.5

63.048.0

86.5 90.086.6 110.0

152.8 157.0193.6 198.0192.4 250.0

...

...

...

. . .18.019.9

25.043.455.355.3

55.355.3

8.86.47.58.3

8.99.89.710.1

9.69.910.810.0

11.912.913.620.5

29.734.156.468.9

95.8121.2192.4

29.642.337.133.7

31.729.829.227.6

30.231.529.231.6

26.624.923.017.1

12.511.07.15.8

4.83.42.4

39.155.146.640.8

40.238.038.737.7

42.744.944.450.3

43.743.844.738 . 2

33.435.928.835.2

37.940.338.9

Sources: Central Bank of Suriname; International Financial Statistics: andInformation Notice System.

I/ The official exchange rate was Sf 1.785 per U.S. dollar through July 11,1994.

2/ An increase in the index indicates an appreciation of the Suriname guilder,nominally or in real terms.I/ Through June 1994, a flexible exchange rate applicable to certain specified

transactions. Afterwards, the (unified) official exchange rate.4/ Quotations from a limited survey among currency traders.J5/ Marginal rate, i.e. rate of lowest accepted bid in currency auctions,

through October 1992; weighted average of accepted bids thereafter.6J Trade weighted average of the various officially recognized exchange rates

and the parallel exchange rate.