IDB loan of US$20 million will help improve business climate and diversify small and medium-size companies
The Inter-American Development Bank (IDB) has approved a US$20 million loan to Suriname with the goal of increasing the value-added of the private sector in the country’s economy. In order to achieve this, IDB will support the implementation of a policy on productivity that favors sustainable growth and business diversification.
Other goals of the program are to improve the business climate, the legal framework and dialogue between the public and private sectors, and to reduce the cost of doing business. The government of Suriname has begun to apply some measures aimed at enhancing the business climate.
Businesses in Suriname face difficulties when it comes to growing and innovating. A lack of administrative principles and procedures creates uncertainty among entrepreneurs who wish to start up a company. The absence of a legal framework governing intellectual property rights is another hindrance to innovation and growth.
The IDB resources will help strengthen Competitiveness Unit Suriname (CUS) so it can support the productivity of small- and medium-size companies, assigning priority to women and isolated communities by boosting their capacity to innovate and come together in value chains.
In conjunction with private-sector organizations, the CUS will coordinate a regional initiative to enhance the capacity of entrepreneurs involved in low-cost manufacturing of high-technology products and in technological services. This includes support in the manufacture of prototypes and acquisition of specialized computer programs and equipment, among other goods.
The operation has two components, a programmatic loan to support policy reforms of US$15 for a 20-year term with a grace period of 5.5 years and an interest rate pegged to the LIBOR. The second is reimbursable technical cooperation of US$5 million with the same term and interest rate, and a grace period of 3.5 years. The local contribution is US$2.7 million, for a total of US$22.7 million. he executing agencies are the Finance Ministry and Vice Presidency of Suriname