Suriname Nears Key Restructuring Deal After Years in Default
Apr 14, 2023 by Bloomberg(Bloomberg) -- Suriname’s creditors are nearing a deal with the South American nation’s government to restructure $675 million of bonds, according to people familiar with the matter.
An agreement, which could result in losses in a range of about 25% to 30% for investors, stands to finally lift the country out of a years-long default, said the people who asked to not to be name because the matter is private. It is also likely to help as the nation looks to resume a program with the International Monetary Fund.
The deal will potentially involve an instrument linked to oil royalties that could help compensate bondholders for losses accepted in a restructuring, the people said.

While the final terms have yet to be agreed, it’s a major step for Suriname. The former Dutch colony defaulted three times during the pandemic, per Fitch Ratings’ criteria, with a restructuring deal elusive.
A representative for the creditors’ committee declined to comment. Neither a government spokesperson nor financial advisors to the government immediately responded to messages seeking comment. The IMF was not immediately available to comment.
With a bondholder deal close, Suriname is also accelerating negotiations with China, one of the people said. As part of the latest restructuring proposal, investors would potentially receive a new bond with a gradually increasing coupon-payment structure, the person said.
A chasm emerged during earlier negotiation between finance officials and bondholders, who wanted access to potential future oil royalties from an offshore basin that driller Apache Corp. says is “the most watched” on the globe.
Now, progress is in focus. The nation is looking to lock in debt agreements and resume an IMF program that would provide a needed source of financing. In late 2021, the sides reached a three-year agreement that gave the government access to around $690 million. But it was halted last year after the IMF was unable to complete reviews.
The sides have been in talks over the last year about bringing the program back, Nigel Chalk, the IMF’s acting director of Western Hemisphere Department, said in a press briefing Thursday.
The nation’s notes due in 2026 have been quoted at around 65 cents on the dollar, while the bonds due later this year are about 73 cents, according to indicative pricing compiled by Bloomberg.
©2023 Bloomberg L.P.
By
More Oil and Gas

Oil Falls as Optimism Over Saudi-Led Production Cut Fades Fast
Jun 06, 2023
How Midnight OPEC Dealmaking Won Gulf Unity at Africa’s Expense
Jun 05, 2023
Oil Rises After Saudis Pledge Million-Barrel Cut at OPEC+ Meet
Jun 05, 2023
OPEC Haggles Over Possible Output Cuts After Day One of Meeting
Jun 03, 2023
A Global Stock Trader’s Guide to More Extreme Weather Events
Jun 03, 2023
VIX Tumbles Toward Pre-Covid Levels as Stocks Gain: Markets Wrap
Jun 02, 2023
Oil Heads for Weekly Decline Ahead of OPEC+ Meeting on Supply
Jun 02, 2023
Oil Edges Higher on Debt-Deal Progress, China Factory Activity
Jun 01, 2023
Oil Holds Deep Slump on Weak Demand Signals Ahead of OPEC+ Meet
May 31, 2023