Suriname today and its small and medium enterprises. February 2013

Transcription

1 Suriname tday and its small and medium enterprises February 2013

2 Grwth and inflatin Slid grwth despite glbal financial turmil and limited glbal demand. Grwth supprted by buyant mining sectr. Inflatin pressures cntained t belw 5% annually since May

3 Lw inflatin fr almst 2 years Inflatin has fallen t annualized levels f less than 5% since May Fd prices create inflatin vlatility due t changing dmestic supply. Mnthly inflatin rates

4 Fiscal perfrmance and debt Cntinued fiscal imprvement since early Debt prfile amng the best in the regin. Debt prjectin des nt include new debt t pay fr equity in gld cmpanies. 4

5 Buyant exprt receipts Gld exprts cntinue t perfrm well with high prices and increasing exprt vlumes. Staatslie s exprts and payments t the gvernment grew nly marginally in

6 Outside assessments: IMF Ecnmy grwing at a steady pace, buyed by strng activity in gld and il sectrs. Impressive stabilizatin f the ecnmy in 2011 due t authrities plicies. Key achievements: a unified freign exchange market, price stability, and significant fiscal gains. A psitive example fr the Caribbean as a meaningful and cmprehensive adjustment, well designed, prperly sequenced, and implemented with cmmitment and reslve. Sund plicies are expected t cntinue. Crucial structural refrms will allw Suriname t grw in a sustainable way. 6

7 Outside assessments: credit ratings Credit rating upgrades due t: Stable macrecnmic envirnment. Eliminatin f arrears. Relative lw debt levels. Structural imprvement f BOP. Rbust medium term grwth prspects. Onging investments. Cnditins fr further rating upgrades: Fiscal strengthening thrugh ecnmic refrms. Large investments that bst GDP grwth and gvernment revenue. 7

8 Refrms are key t limit risks Central Bank shift twards use f indirect market-based instruments. Develpment f the lcal mney and capital markets. Gradual de-dllarizatin f the ecnmy. Establishment f the Svereign Wealth Fund t reduce the impact f il and gld price vlatility and stabilize and diversify incme streams. Mdern and transparent budget preparatin and executin prcedures. New legal framewrk and mdernizatin f the tax regime. Deregulatin, privatizatin, and mdernizatin f administrative prcesses t allw mre private sectr investment and cmpetitin. Measures t increase SMEs access t financing. 8

9 Structure ecnmy and gvernment plicy Dual prductin and exprt structure: Large mining cmpanies dminate prductin and exprts SME s: small cntributin t exprts, but imprtant fr emplyment and sustainable develpment. Tw-prnged Gvernment develpment strategy: Further develpment f the mining sectr: a participatry apprach. Special fcus n SME Access t finance is identified as a majr bstacle fr grwth SME. 9

10 Factrs inhibiting SME access t financing Direct mnetary plicy instruments reduce credit and increase lending csts. Lack f financial infrmatin and creditwrthiness f SMEs limits banks ability t lend. Limited accunting infrmatin and accunting expertise in Suriname. Lack f financial literacy and lack f experience in preparing bankable business prpsals. Limited securities market r ther nn-bank lending surces. 10

11 SME access t financing: CBvS actins Indirect mnetary plicy instruments Depsit and lending facilities and T-bill auctins. Will facilitate lending, increase cmpetitin amng banks, reduce lending rates. Credit bureau CBvS circulated a draft law t help establish an independent credit bureau. Shuld recrd all psitive and negative credit reprts frm all lending institutins. Will allw SMEs t build up a credit track recrd. Accunting and reprting Strengthening the CBvS Banking Supervisin. Supprting accunting expertise thrugh training. 11

12 SME access t financing: CBvS actins (cnt d) Fcused lending t SMEs thrugh dedicated facilities In discussin with the Inter-American Investment Crpratin (IIC) t prvide technical supprt in the area f medium term lending t SME s. Cllabratin prmte ecnmic develpment in Suriname and supprt private sectr develpment; establish financial mechanism and custmized financial instruments in supprt f innvative and cmpetitive small and medium-size private sectr cmpanies in Suriname; Suriname: T prvide a Designated Executing Agent with independent advice in rder t validate the creditwrthiness f Surinamese SME s. The Agent will be designated by the Ministry f Finance. The IIC will train several fficers f the Agent, furnish standard lan dcuments and validate decisins based n a standardized credit file that incrprates IIC s credit criteria. 12

13 SME access t financing: Other measures Privatizatin and deregulatin Sale f public enterprises, deregulatin, and eliminatin f mnplies will prvide mre space fr private sectr activities and cmpetitin. Reductin f red-tape (imprve standing in the Wrld Bank Index f Ding Business). Public-private partnerships (PPPs) Private sectr builds, wns, and perates cmpanies in areas traditinally reserved fr the gvernment. Can include agriculture, infrastructure, transprtatin, energy, water, etc. 13