The CreditWatch action follows Suriname's failure to service debt to the Inter-American Development Bank and the European Investment Bank. Suriname is more than six months in arrears on loans from both institutions, surpassing designated grace periods. While Standard and Poor's credit ratings reflect the borrower's ability and willingness to service its commercial debts, default to multilateral preferred creditor institutions generally signals severe stress that may foreshadow problems in meeting commercial obligations. Suriname's recent troubles came to light when the new administration of President Ronald Venetiaan, who also governed Suriname from 1991-1996, took office in August 2000. Upon assuming power, his administration encountered empty government coffers resulting from years of fiscal deficits, rising arrears to suppliers and creditors, high inflation stemming
