WASHINGTON – The government of Suriname has completed the country's first conversion of external debt into Surinamese dollars, transforming a $150 million Inter-American Development Bank (IDB) floating-rate loan into a fixed-rate loan in Surinamese dollars. The transaction will help Suriname shield its debt-service payments from foreign exchange rate and interest rate volatility through 2044.
As part of the operation, the government activated the currency and interest-rate conversion options available under the IDB's Flexible Financing Facility. To support the conversion, TCX provided the IDB with an 18-year non-deliverable cross-currency swap, a long-term financial hedge that protects the transaction from future exchange-rate movements, allowing the loan to remain effectively denominated in Surinamese dollars through 2044.
“Completing our first external debt conversion into Surinamese dollars, and our first currency conversion in nearly three decades, represents a major strategic milestone for Suriname. Converting $150 million of foreign debt into fixed Surinamese dollars allows us to shield our public finances from exchange rate and interest rate volatility through 2044. This transaction stabilizes our debt-service obligations and ensures greater fiscal predictability as we manage our national budget and pursue sustainable economic growth”, said Charlene Soentik, Administrator-General of the Suriname Debt Management Office, and Adelien Wijnerman, Minister of Finance and Planning of Suriname.
“Suriname has taken an important step to better protect its public finances from foreign-exchange fluctuations while fostering the development of its local-currency market. Through the Client Financial Hub, the IDB is bringing together its financial capabilities to help countries make fuller use of the conversion and risk-management options available in their loan agreements, and develop solutions that respond to their broader financial needs. This is how we can strengthen debt sustainability and increase the impact of development financing,” said Gabriel Yorio, IDB Vice President for Finance and Administration.
The transaction is part of the IDB's efforts to help member countries strengthen public debt management through access to sophisticated risk-management instruments. In Suriname's case, the operation enabled access to a long-term
TCX CEO Ruurd Brouwer added “We are proud to partner with the IDB and the Ministry of Finance of Suriname on this landmark loan conversion. It demonstrates how development finance institutions can work together to address currency risk and enhance fiscal predictability and resilience. In Suriname, the absence of a domestic government bond yield curve and commercial solutions for an 18-year hedge of this scale makes the transaction particularly significant. More broadly, it marks an important step in local-currency market creation, laying the groundwork for long-term Surinamese dollar hedging solutions while offering a model for other sovereign borrowers seeking to increase their resilience to economic shocks."
Flexible Financing Options
Under the IDB’s Flexible Financing Facility, borrowers can change the currency or interest-rate basis of a loan after approval, depending on market conditions. These options can apply to outstanding balances or future disbursements.
About the Inter-American Development Bank
The Inter-American Development Bank is devoted to improving lives in Latin America and the Caribbean. Established in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development.
About TCX
The Currency Exchange Fund (TCX) is a development finance institution specializing in currency-risk management in emerging and frontier markets. TCX provides long-term swaps and forward contracts in currencies where commercial hedging solutions are limited or unavailable, enabling international lenders and their borrowers to reduce currency mismatches and support sustainable local-currency financing.