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News from Suriname as of
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Suriname pays off debt to Brazil
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| Published on Tuesday, September 8, 2009 | Email To Friend Print Version
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By Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com
PARAMARIBO, Suriname -- Suriname's government paid off the country's longstanding debt to neighbouring Brazil on August 26, the Ministry of Finance has announced. The initial debt of US$60 million, which consisted of loans dating back from the 1980s, over the years increased to a US$118 million, due to arrears in backpayment.
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| Officials at the signing ceremony. Photo: Ivan Cairo |
After intensive negotiations, Suriname successfully reached a debt settlement agreeing to pay US$74 million in one single installment while the the Brazilian goverment will write off the remaining US$44 million. Suriname has also agreed to invest the debt reduction of US$44 million in the rehabilitation of the runway of the country's international airport and co-financing of the Southdrain Road connecting Suriname and Guyana.
To complete the deal Suriname signed an agreement with the Netherlands in July to utilize the remaining development aid it was receiving from that country to pay off the debt.
At the signing ceremony Andre Telting, Governor of the Central Bank of Suriname, noted that the initial loans were used to finance armoured vehicles for the National Army, while also part of these loans were used to finance food imports, telecommunications equipment and passenger cars and the establishment of several ceramic and glassware factories.
In 1996 the government-owned telecom provider Telesur paid of part of the loan, which has been used to purchase telecommunications equipment from Brazil. | | | | Reads : 807 | | | |
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