Financing of companies by the state

Financing of companies by the state

Staatsolie reported the following in its annual report 2016 about a current account payable and Loan to Government of Suriname (page 51/52 annual report):

Current account Government of Suriname

‘The current account Government of Suriname consists of the Government’s contribution and amounts to USD 63 million. The contribution of the Government of Suriname is based on their intent to acquire not more than 5% of Staatsolie’s participation interest in Suriname Gold Project C.V. Furthermore, an amount of USD 1.8 million was received as royalties which was transferred to the Government in 2017.’ (The royalty fee is explained at page 92 timing difference NS).

The following information was provided additionally by Staatsolie regarding this current account: “During this deal, the Government withdrew its intent to acquire the above-mentioned stake of 5%. Staatsolie has reimbursed the amounts received from Government in 2018 at the expense of a loan facility.”

Loan Government of Suriname

‘In November 2016 Staatsolie refinanced the secured long-term bank loan with an unsecured loan from the Government of Suriname. The loan amounts to USD 261 million and bears 9.25% interest and a bullet repayment in November 2026.’

Please note that MOF has specified the receipt of SRD 27.4 million interest from Staatsolie and marked this as a non-mining sector revenue.

Subsidies

The Surinamese government has agreed that RGM payments conditioned under the PPA1 are ceded to EBS. Therefore, MoF recognizes it in mining revenue and has reported accordingly for SEITI purposes. In its publicized data, MoF also places it under subsidies to EBS. The net effect on the budget balance is neutral, but MoF includes both the credit and debit streams.

2019-12-20T11:24:46-03:00Friday 20 December 2019|EITI Suriname Report 2016|