The ratings on the Republic of Suriname are constrained by: Weak policy execution, which highlights both the traditionally high political fragmentation and the slow-moving and indecisive nature of the ruling coalition. This, coupled with the lack of a clear strategy, undermines the government's ability to formulate and implement a cohesive economic policy and to address needed structural reform. Large fiscal imbalances, which translate into pressure on the Surinamese guilder and the subsequent resurgence of double-digit inflation. The government's continuing inability to reign in the wage bill (estimated to have increased by 8% of GDP in 2002 to a total of 20% of GDP), coupled with a poor tax collection, has resulted in a significant increase in the fiscal deficit. Unless
