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Suriname to hold off on new IMF program until next year's election

The government of Suriname stated on Tuesday it would wait up until after next year's May basic election to choose whether to look for another program with the International Monetary Fund, as it weighs how to best use its new oil earnings.

The small South American nation is hoping that an upcoming $ 10.5 billion oil and gas project run by France's. TotalEnergies and U.S. APA Corp will assist. improve an economy still recuperating from a heavy financial obligation problem.

Financing Minister Stanley Raghoebarsing urged caution, stating. the federal government would not request another IMF program. instantly after the present $688 million program ends in. March. Suriname recently did, however, join a World Bank. arrangement opening $22 million to enhance living conditions.

In a different declaration, Raghoebarsing also ruled out taking. out new loans using future oil profits as security.

In no other way do we want to sell the oil we have yet to produce. and utilize it as collateral for simple cash, which would problem the. next generation, he said. He also eliminated debt-for-nature. swaps to pay back existing debt early.

The TotalEnergies-APA job is anticipated to start output in. 2028. State oil company Staatsolie has actually forecasted the job. could generate as much as $26 billion, benefiting Suriname's. economy and population of 650,000 through federal government royalties.

The government is likewise studying a change to a law on oil. earnings that looks for to stabilize their use between existing and. future generations.

(source: Reuters)