The affirmation of the long-term sovereign credit ratings on the Republic of Suriname and their removal from CreditWatch reflect the sovereign's recent clearance of arrears to Inter-American Development Bank and the European Investment Bank. Suriname was in arrears to both institutions for about 18 months. Suriname has also settled arrears with two Spanish Banks (Banco Santander and Banco Vilbao Vizcaya Argentaria). The administration of President Ronald Venetiaan took office in August 2000. It has since faced many challenges, encountering empty government coffers resulting from years of fiscal deficits, rising arrears to suppliers and creditors, high inflation stemming from central bank financing of fiscal imbalances, a drained international reserve base, and numerous undocumented debts. During its first year-and-one-half in power, the
