WASHINGTON (Reuters), The International Monetary Fund has reached a staff-level deal with Suriname over policy reforms in the initial review of South American’s $688 million loan programme.

“Despite difficult social and economic conditions, which have been exacerbated by the COVID-19 pandemic, Suriname’s homegrown economic recovery program is on track, IMF mission chief Ding Ding said in a statement. All quantitative targets set at the end of December 2021 were met.

Suriname approved the three-year Extended Fund Facility program worth $688 million on December 23. This made $55 million available immediately. It aims to restore Suriname’s foreign reserve and to return it to market rates.

According to the IMF, inflation is still at 60.6% in December, but has been falling since August. The fiscal deficit as well as external imbalances have also fallen.

Ding stated that the Surinamese economic recovery is possible over 2022. Real GDP growth can be achieved at 1.8% with the removal of external and fiscal imbalances as well as stabilization in macro-economics.

He stated that Suriname was committed to reducing inflation, as well maintaining an exchange rate free from market fluctuations.

Soon, the government will submit to the National Assembly a revised budget for 2022. It aims for a primary surplus at 1.7 percent GDP and greater cash transfers for the most vulnerable.

Ding stated that the government was also trying to promote debt relief discussions with official and private creditors.

Approval by the IMF Executive Board is required for any agreement regarding policy reforms.