NEW YORK/PARAMARIBO, Dec 23 (Reuters) – The International Monetary Fund approved on Wednesday a three-year, $688 million program for Suriname, with some $55 million enabled for immediate disbursing.

“The program aims to rebuild Suriname’s foreign reserves, IMF Managing Director Kristalina Georgieva said in a statement.

“The authorities’ decision to move to a market-determined exchange rate will strengthen the economy’s resilience to external shocks.

Suriname’s program had been approved by the IMF’s staff back in late April and the government had complained that the Board was taking too long in granting it full approval.

It usually takes a few weeks between staff and board approvals, once initial commitments are met.

“I am very pleased that it has finally been possible for the Executive Board of the IMF to provide the financial support to Suriname. It took many months of diplomatic lobbying to achieve this,” said Finance Minister Armand Achaibersing in a late Wednesday press release.

“The government is committed and has a plan and a method to tackle long-standing structural weaknesses and put Suriname’s house in order,” he added.

“We are not only repairing the roof, but against the background of what we have found, we are also laying a new foundation.”

Georgieva said the government’s decision to free the FX rate and the new program’s “catalytic effect on external financing” will help drive foreign reserves to “prudent levels.”

Reporting by Rodrigo Campos in New York and Ank Kuipers in Paramaribo
Editing by Leslie Adler and Chizu Nomiyama

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