$115.8 million loan will exceed debt ceiling

The $115.8 million that the State wants to borrow to finance the National Broadband Project of the Telecommunication Company Suriname (Telesur) will reportedly exceed the debt ceiling for foreign loans with 7.62% which is why MPs from the coalition as well as the opposition are not eager to give the green light. “The law clearly states that the debt ceiling may be exceeded, if Parliament grants its permission. The law also states that the permission can be registered separately. Permission for the previous $235 million loan for the Dalian IV asphalt project may also be registered separately,” said Acting Finance Minister Steven Relyveld on Tuesday. MP Amzad Abdoel (NDP) who is also chairman of the committee of rapporteurs on the Authorization Act asked that the law be amended. He would prefer the government to opt for a $98.8 million loan instead of a $115.8 million loan. Telesur will reportedly pitch in with $17 million. MP Abdoel and the other members of the parliamentary committee want to know why the government wants to borrow $115.8 million because Telesur will pitch in with $17 million. MP Rossellie Cotino (NDP) and MP Asiskumar Gajadien (VHP) also asked the same question.

The minister of Transport, Communication and Tourism (TCT), Andoyo Rusland, made it clear that this loan is necessary if Suriname wants to keep its telecom sector ‘alive.’