MP Rusland has his doubts about new loan Staatsolie

MP Gregory Rusland from the National Party Suriname (NPS) recently announced that he does not hope that the government is trying to get loans via the State Oil Company (Staatsolie) Suriname to finance projects and win the 2020 elections. MP Rusland responded to the fact that Staatsolie is about to borrow $680 million at an annual interest rate of 8%.

The legislator who is also the chairman of the National Party Suriname (NPS) pointed out that the current financial situation of the nation is keeping the government from carrying out several projects. “They are busy launching various projects. They do not explain how they will finance these projects. There is no money and the government keeps making promises. Past experience has taught us that the government opts for loans to finance projects in order to win the elections. The new loan of Staatsolie raises many doubts which is why clear answers must be given.”

Staatsolie CEO Rudolf Elias reportedly did not want to respond to the comments of MP Rusland but he did repeat that the company is currently negotiating with foreign banks in order to get refinancing for a previous loan of $800 million. Elias made it clear that no additional money will be borrowed.

“Staatsolie will have paid back about 150 to 180 million of the entire loan within the next 2 years. The company is currently looking at the option of refinancing the rest of the loan that is estimated to be about $ 650 million. By refinancing the rest of the loan the company can pay back the loan over a longer period and at better conditions. The negotiations are in full swing and things will be clear by the end of the month. The refinancing of the loan is in the best interest of the company and the country.”