Suriname to miss coupon payment, engage IMF amid liquidity squeeze

Suriname, Paramaribo, boats, river, LatAm, jungle, 575
By Oliver West
23 Oct 2020

Suriname’s new government said on Thursday that it would not make a coupon payment due next Monday on its $550m of 9.25% 2026s as it prepares for restructuring discussions. But with the Surinamese economy capable of generating high levels of hard currency, the focus could be on liquidity relief rather than principal haircuts.

The government, elected in July, said that it had “inherited an economy in severe distress, characterised by high external and fiscal deficits, exacerbated by the Covid-19 pandemic”. This is causing “severe financial imbalances”, with a budget deficit close to 20% of GDP, and public debt at “historical” levels. 

“Borrowing ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial