Hoefdraad: “The worst is over”

Finance Minister Hoefdraad on Thursday made it clear to the nation’s legislators that the worst is over and that the nation’s economy is heading into calm waters. “We are seeing stronger signs that the worst is over,” said Minister Hoefdraad. It is expected that the year will be closed with a growth of -15 and that it could turn into a positive growth of 0.5% with a bit of good luck.

The inflation will be at about 10% at the end of the year and the income from the mining sector were the same in the first six months of 2017 like the entire year before that. The government will reportedly have to address the income from taxes issue. The nation’s 17% tax of the gross national product is reportedly the lowest level in the region. The government hopes to increase its income to an acceptable level through a series of hikes.

The government will focus primarily on value added tax (VAT) which is expected to add SRD 400 million to the treasury. The government is also focusing on plans aimed at increasing tax on alcohol and tobacco. The minister made it clear that seeking a foreign loan was inevitable at this moment. Next Monday a foreign broker is expected to inform the government of its options on the international market. Hoefdraad referred to the matter as a Private Placement. A private placement is a capital raising event that involves the sale of securities to a relatively small number of select investors. Investors involved in private placements can include large banks, mutual funds, insurance companies and pension funds.