NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION.

Republic of Suriname July 1, 2020

RECENT DEVELOPMENTS IN THE REPUBLIC OF SURINAME

Presentation of Information

Certain financial and economic information presented herein may be subject to revision and may subsequently be materially adjusted or revised to reflect new or more accurate data as a result of the periodic review of the Republic’s official financial and economic statistics. In particular, some information and data are preliminary and are subject to revision or adjustment as additional or amended information becomes available. In addition, National Assembly elections were held on May 25, 2020. Opposition parties collectively won 35 of the 51 seats in the National Assembly. It is expected that opposition parties will form a new government coalition and that a representative from among the opposition parties will be elected to succeed President Desi Bouterse. As a result of changes in the government that will follow from the National Assembly elections, government information and plans may change. In addition, there can be no assurance that the incoming government will continue to provide the same level of continued information and under the same standards as provided by the current Government.

Any revisions to the Republic’s official financial or economic data resulting from any subsequent review of such data by the Central Bank of Suriname (the “CBvS”) or other Government entities or for other reasons could be material. Such revisions could reveal that the Republic’s economic and financial conditions as of any particular date are materially different from those described herein. The Republic cannot provide any assurances that material changes will not be made, that the information provided herein is complete or that any such adjustments or revisions will not have a material adverse effect on the interests of its creditors, including holders of its 9.25% Notes due 2026 (the “2026 Notes”) and its 9.875% Notes due 2023 (the “2023 Notes”). The Republic is not obligated to distribute any such revised data and information to any investor.

Certain statistical information contained herein has been derived from official publications of, and information supplied by, among others, the International Monetary Fund (the “IMF”), the United Nations Conference on Trade and Development (“UNCTAD”), the United Nations Development Program (the “UNDP”) and the World Bank Group. Certain economic data contained herein has been derived from data provided by the Suriname Working Group on Financial Programming (the “WGFP”). The WGFP was established in 2015 to be the macroeconomic programming and forecasting unit for the Government and the CBvS. The WGFP comprises the Planning Office (responsible for GDP forecasts), the Economic Affairs Department of the Ministry of Finance (responsible for fiscal sector forecasts), the Research and Statistics departments of the CBvS (responsible for monetary and balance of payments forecasts), and the Suriname Debt Management Office (the “SDMO”) (responsible for debt and debt service forecasts). The WGFP was established to ensure quantitative consistency of macroeconomic policies, including budget forecasts, and to support the work of the Government and the CBvS in determining fiscal and monetary policies. The WGFP applies the IMF’s financial programming methodology and exchanges and coordinates data though a dedicated web portal created by the CBvS. The WGFP’s forecasts are produced twice a year and are not published separately but they become part of published Ministry of Finance and CBvS forecasts. Official GDP figures are available for years prior to and including 2018. Any data in this Consent Solicitation Statement presented as a ratio to 2019 GDP is based on the forecast of GDP for 2019 made by the WGFP.

Certain economic data contained herein has been derived from data from the CBvS monthly economic activity indicator (the “MEAI”), a short-term indicator to measure movements of economic activity in Suriname. The MEAI uses primary and secondary data sources. The primary data source consists of data derived from an establishment survey conducted among approximately 200 companies, which includes “key players.” The secondary data sources consist of UNCTAD Automated System for Customs Data (“ASYCUDA”), the CBvS, the General

1 Bureau of Statistics (the “GBS”) and financial reports and production data of selected companies. The MEAI is a fixed-based index that uses the structure of the economy in 2011 as a base year. Following the Laspeyres index formula, an index is generated for each activity. Weights by industry derived from the nominal value added as published by the GBS, are used to generate the total index for the economy. Growth rates are based on the 12-month moving average approach, which is intended to use a methodology that resembles as closely as possible the methodology used by the GBS in its annual GDP publication.

Unless otherwise specified or the context requires, references herein to “U.S. dollars” and “US$” are to United States dollars; references to “SRD” are to Surinamese dollars, the national currency of the Republic; and references to “SDR” are to Special Drawing Rights of the International Monetary Fund.

Certain amounts included in this document have been subject to rounding adjustments; accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures which precede them.

Forward-Looking Statements

This document contains certain forward-looking statements (as such term is defined in the U.S. Securities Act of 1933) concerning the Republic. These statements are based upon beliefs of certain government officials and others as well as a number of assumptions and estimates which are inherently subject to significant uncertainties, many of which are beyond the control of the Republic. Future events may differ materially from those expressed or implied by such forward-looking statements. In this document, the words “anticipates,” “believes,” “contemplates,” “estimates,” “expects,” “plans,” “intends,” “projections” and similar expressions, as they relate to the Republic, are intended to identify forward-looking statements. Such statements reflect the current views of the Republic with respect to future events and are subject to certain risks, uncertainties and assumptions. The Republic undertakes no obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, there can be no assurances that the events described or implied in the forward-looking statements contained in this document will in fact occur.

Exchange Rate Information

In this document certain SRD amounts have been translated into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise indicated, any such amounts have been translated at the applicable official CBvS exchange rate on the date of such data or the average of such rates for the relevant period, as applicable. Currency conversions contained in this document should not be construed as representations that SRDs have been, could have been or could be converted into U.S. dollars at the indicated or any other rate of exchange.

2 Selected Economic Indicators

The following table sets forth certain selected economic indicators for the Republic of Suriname for the years presented.

For the Year Ended December 31, 2015 2016 2017 2018 2019 Real Sector(1) GDP at current prices (SRD billions) 16.4 19.5 24.0 25.8 28.5 Real GDP growth (annual percentage change) (3.4) (5.6) 1.8 2.6 2.1 Consumer prices (year-on-year) 25.2 52.4 9.2 5.5 4.2

Monetary Sector (end of year) Banking system net foreign assets (US$) (annual percentage change) (37.2) 17.1 (2.5) 30.9 (32.2) Broad money (annual percentage change) 11.8 52.3 8.8 9.0 5.7 Private sector credit (annual percentage change) 15.4 27.5 1.2 (4.6) 1.3 Credit dollarization (ratio) 38.1 52.0 51.1 45.5 38.6 Deposit dollarization (ratio) 57.7 70.0 68.8 65.0 66.2

(In percent of GDP, unless otherwise indicated) Fiscal Sector Revenue 22.3 18.1 21.3 23.1 23.2 Expenditure 31.2 28.8 29.7 30.7 31.9 Overall balance (financing side) (9.8) (10.7) (8.8) (7.9) (7.8) Net equity acquisition 0.0 (2.4) (0.3) 0.8 0.1 Net domestic financing 8.2 (11.1) 5.0 2.6 3.6 Net external financing 1.6 24.2 4.1 4.4 4.2

Government Debt(2) (at year end) External 18.5 46.8 53.4 50.8 54.3 Domestic 20.4 20.3 19.8 17.3 20.8 Total 39.0 67.1 73.2 68.1 75.1

External Sector Current account balance (16.5) (5.5) 1.9 (3.5) (11.1) Change in NIR (US$ millions) (265.8) 79.4 21.7 147.9 44.8 Gross international reserves (at year end) - US$ millions 330.2 381.1 424.4 647.5 823.1 - in months of imports of goods and services (months) 1.5 2.7 2.8 3.2 4.0 ______(1) 2019 GDP data forecasted by WGFP. Official GDP data for the year ended December 31, 2019 is expected to become available after August 2020. (2) Debt to GDP ratios as of the end of 2019 have been calculated using an estimate of 2019 GDP, which may differ from estimates produced by rating agencies or multilateral financial institutions. Official GDP data for the year ended December 31, 2019 is expected to become available after August 2020. Sources: IMF, WGFP, SDMO.

3 Credit Ratings

On January 22, 2020, Fitch downgraded the Republic’s sovereign credit ratings from “B minus” to “CCC.” On April 1, 2020, S&P Global Ratings downgraded the Republic’s foreign currency long-term credit rating from "B" to "CCC+" with a negative outlook. On April 14, 2020, Moody's downgraded the long-term issuer and senior unsecured ratings of the Republic to B3 from B2 and changed the outlook from stable to negative.

Government and Political Parties

National Assembly elections were held on May 25, 2020. The National Democratic Party (“NDP”), headed by President Bouterse, won 16 of the 51 seats in the National Assembly, and the opposition parties (the Progressive Reform Party (VHP), Algemene Bevrijdings- en Ontwikkelingspartij (ABOP), National Party Suriname, Pertjajah Luhur and Brotherhood Unity in Politics (BEP)) collectively won 35 seats. As a result, opposition parties will form a new government coalition. The National Assembly members will vote for a President and Vice President, but as this requires a 36-vote majority, it is possible that following the three required rounds of votes a President and Vice- President will not have been appointed. In that case, the Constitution mandates the establishment of a People’s Assembly along the same lines as dictated by the outcome of the May 25, 2020 election. The People’s Assembly would then require only a simple majority to appoint a President and Vice-President. The composition of the National Assembly by political party as resulting from the May 25, 2020 elections is as follows:

Political Party Seats Progressive Reform Party (VHP) 20 National Democratic Party (NDP) 16 Algemene Bevrijdings- en Ontwikkelingspartij (ABOP) 8 National Party Suriname 3 Pertjajah Luhur 2 Brotherhood Unity in Politics (BEP) 2 Total 51 ______Source: Central Hoofdstembureau

COVID-19

Suriname confirmed its first imported COVID-19 case on March 13, 2020. As of March 26, 2020, the authorities confirmed a total of eight cases with 320 persons in quarantine. The authorities acted swiftly to contain further importation of the virus and prevent community spread. The measures implemented by the Government have included the indefinite closure of all land, sea and air borders and measures to facilitate the return of foreigners to their country of origin and retrieve Surinamese nationals in foreign countries. The authorities also limited social gatherings, closed all schools and universities and restricted in-restaurant and bar dining services (take-away services have been allowed). Communication of COVID-19 developments to the public has occurred via a daily press conference as well as through a dedicated website and press briefings. While the measures succeeded in limiting the total incidence to nine fully-recovered cases and one fatality through May 28, 2020, the pandemic expanded rapidly after that date. It is believed that such expansion was a result of illegal gold mine workers from Brazil having brought COVID-19 to Suriname, as all of Suriname’s borders continue to be formally closed. As of June 24, 2020, Suriname had reported 357 confirmed cases, 154 recovered cases and 10 fatalities.

Suriname’s economy has been materially adversely affected by the COVID-19 pandemic. Given Suriname’s high commodity dependence (gold and oil), the ongoing commodity price shock has had negative effects on growth and has further weakened the fiscal and external positions. Further effects have occurred through the impact of social distancing measures and internal and international travel restrictions. The lack of air transport connections has also hindered physical gold exports and the movement of expatriates in the oil exploration and construction sectors. The necessary travel and entertainment restrictions associated with social distancing globally and within Suriname are having large adverse impacts on domestic economic activity, the extent of which will depend on how long they remain in effect. The “human contact” industries such as entertainment, restaurants, bars, retail, transportation, and home care services are expected to be affected most during this period. In addition, work stoppages and slowdowns due to COVID-19 cases and protection measures have been reported in major industries

4 in Suriname. New investments are largely expected to be postponed and ongoing infrastructure projects could suffer delays in implementation, affecting economic activity in the construction sector.

Since the outset of the COVID-19 pandemic, the Government has introduced a number of policies aimed at responding to the spread of the virus, as well as financial measures aimed at mitigating the potential economic impact of the crisis. At this time, it is uncertain if such measures will be effective or what the financial impact of such measures will be. Ongoing policy discussions are focused on ensuring that the distribution of basic supplies, crucial government services, including health care provision and utilities continue during the COVID-19 crisis period. The authorities have also been looking at measures to support Surinamese businesses. The ongoing shock is likely to worsen the Republic’s fiscal accounts through a decline in revenue, mostly indirect taxes and dividends and income taxes from the oil sector. Nevertheless, a significant fiscal effort is needed to mitigate the effects of COVID- 19 and support households and businesses. The authorities have announced social support measures for vulnerable groups during this period. These include enhanced supervision on price speculation and advising companies not to dismiss employees during the crisis period. Commercial banks have also increased withdrawal limits at ATMs and the use of online banking has been strongly encouraged.

The COVID-19 crisis is likely to impact all sectors of the Republic’s economy, and there can be no assurance as to when the various economic sectors will return to pre-crisis levels of activity. In addition, no prediction can be made as to the scope or the scale of systemic changes to the Republic’s economy that will result from the crisis.

Gross Domestic Product

According to the IMF’s World Economic Outlook (April 2020), Suriname is estimated to have had GDP growth for 2019 of 2.3%, while the WGFP estimates economic growth for 2019 at 2.1%, based on the CBvS monthly economic activity indicator and partial data from key sectors. Official GDP data for the year ended December 31, 2019 will only become available after August 2020. GDP growth in 2019 was primarily attributable to an increase in wholesale and retail trade and other domestic non-mining activities. The volume production of gold, a key indicator for the mining and manufacturing sector, is estimated to have grown modestly in 2019.

According to the IMF’s World Economic Outlook (April 2020), Suriname is projected to have negative real GDP growth of 4.9% in 2020 and positive real GDP growth of 4.9% in 2021. In April 2020, the Inter-American Development Bank (the “IDB”) changed its economic growth forecast for Suriname for 2020 from projected real GDP growth of 2.5% (forecasted in IDB’s December 2019 report) to a projected decline in real GDP of approximately 5.6% as a result of the effects of COVID-19 and the recent decline in global commodity prices.

5 Gold Sector

The following table sets forth information on Suriname’s gold industry for the years presented.

Indicators of Suriname’s Gold Industry Year ended December 31, Units 2015 2016 2017 2018 2019 Gold production x 1000 troy ounces 852 881 1,328 1,338 1,350 Gold export volume x 1000 troy ounces 821 840 1,289 1,320 1,315 Gold export price US$/troy ounce 1,117 1,186 1,225 1,231 1,296 Gold export value US$ millions 916 1,037 1,309 1,632 1,732 Number of employees(1) 2,264 2,366 2,434 2,470 2,630 (percentage change)(%) Gold production x 1000 troy ounces (14.1) 3.4 50.7 0.8 0.9 Gold export volume x 1000 troy ounces (15.2) 2.3 53.3 2.4 (0.4) Gold export price US$/troy ounce (7.6) 6.2 3.3 0.5 5.3 Gold export value US$ millions (21.6) 13.2 55.2 1.4 6.2 Number of employees(1) 18.7 4.5 2.9 1.5 6.5

(1) Only includes employees of Rosebel Gold Mines N.V. and Suriname Gold Project C.V. Sources: IAMGOLD Corporation, Newmont Corporation, CBvS, Ministry of Finance, SSFS.

IAMGOLD Concessions

The Rosebel gold mine project is owned by Rosebel Gold Mines N.V. (“Rosebel Gold Mines”), a joint venture company that is 95%-owned by Canadian company IAMGOLD Corporation, and 5%-owned by the Government. The following table sets forth certain information in respect of Rosebel Gold Mines for the years presented.

Rosebel Gold Mines(1) Year ended December 31, 2017 2018 2019 Gold production (thousand ounces) 318 302 264 Ore milled (thousand tons) 12,832 12,209 12,166 Head grade (g/t) 0.83 0.82 0.71 Recovery (%) 93 94 95 Average realized gold price (US$/ounce) 1,260 1,268 1,387 Royalties paid (US$/ounce) 69 71 81 Royalties paid (US$ millions)(2) 22.0 21.5 21.5 ______(1) All figures on a 100% basis. (2) 2% in-kind royalty per ounce of gold production and price participation of 6.5% on the amount exceeding a market price of US$425 per ounce when applicable, using for each calendar quarter the average market price determined by the London Gold Fix P.M. In addition, 0.25% of all minerals produced at the Rosebel gold mine and mill are payable to a charitable foundation for the purpose of promoting local development of natural resources within Suriname. Source: IAMGOLD Corporation 2019 Annual Report

The Saramacca gold mining project, a satellite operation of the Rosebel gold mine, is one of seven concessions that are part of an unincorporated joint-venture in which Rosebel Goldmines N.V. holds a 70% interest and 100% state-owned oil company Staatsolie Maatschappij Suriname N.V. (“Staatsolie”) holds a 30% interest. The 30% interest was previously held by the Government but was transferred to Staatsolie in April 2020 for no consideration. The first ore from the Saramacca project was delivered to the Rosebel mill in October 2019 and full commercial operations at Saramacca commenced in April 2020. Rosebel Goldmines N.V. is also continuing to evaluate the underground mining potential of the Saramacca concession. Production from Saramacca is expected to increase gold output from the Rosebel concessions in each quarter in 2020 and in subsequent years.

6 In 2018, Rosebel Goldmines N.V. was awarded the Brokolonko gold mining concession as a 70%-30% unincorporated joint venture with the Government. Like the Saramacca concession, the Brokolonko concession is a satellite operation of the Rosebel gold mine. Gold has not yet been produced from the Brokolonko concession.

According to IAMGOLD Corporation’s 2019 Annual Report, IAMGOLD Corporation expects production of Rosebel Gold Mines in 2020 (on a 100% basis) to be in the range of 245,000 to 265,000 ounces and in 2021 (on a 100% basis) to between 305,000 and 335,000 ounces. According to IAMGOLD Corporation, as at December 31, 2019, total estimated attributable proven and probable mineral reserves at Rosebel, including the Saramacca deposit, were 133.2 million tons grading 1.0 g/t Au for 4.4 million contained ounces. Total attributable measured and indicated resources (inclusive of reserves) totaled 286.7 million tons grading 1.0 g/t Au for 8.9 million contained ounces and attributable inferred resources totaled 68.8 million tons grading 0.9 g/t Au for 1.9 million contained ounces.

Newmont Concessions

The Merian gold mine is operated by Suriname Gold Project C.V. (“Surgold”), a joint venture that is 75% indirectly owned by Newmont Corporation and 25% owned by Staatsolie. As the larger part of the Newmont Corporation investments in the Merian gold mine undertaken four years ago are now fully depreciated, such investments will begin making a significant positive contribution to income tax revenue in 2020. Most investments in the Merian gold mine project were completed by the fourth quarter of 2016 and thus the investments were fully depreciated by the fourth quarter of 2019.

According to Newmont Corporation, the Merian gold mine produced 524,000 ounces of gold (393,000 attributable ounces of gold) (100% basis) in 2019 and reported approximately 4.64 million ounces of gold reserves (100% basis) as of December 31, 2019. According to Newmont Corporation, gold production at Merian decreased 2% in 2019 compared to 2018 primarily due to lower ore grade milled, lower recovery and a lower drawdown of in- circuit inventory as compared to 2018, partially offset by higher mill throughput. Cost applicable to sales per gold ounce increased 10% in 2019 compared to 2018 primarily due to an unfavorable strip ratio and higher gold-price driven royalties. All-in sustaining costs per gold ounce increased 10% in 2019 as compared to 2018 primarily due to higher costs applicable to sales per gold ounce.

According to Newmont Corporation gold production at the Merian gold mine was 133,000 ounces in the first quarter of 2020 compared to 148,000 ounces in the first quarter of 2019 (each on a 100% basis). According to Newmont Corporation, gold production at Merian decreased 10% in the first quarter of 2020 as compared to the first quarter of 2019 primarily due to lower ore grade milled as a result of lower ore grade mined, a lower draw-down of in-circuit inventory and lower recovery, partially offset by higher mill throughput. Costs applicable to sales per gold ounce increased 29% between the two quarters primarily due to lower ore grade mined and higher gold price-driven royalties. All-in sustaining costs per gold ounce increased 23% between the two quarters primarily due to higher costs applicable to sales per gold ounce, partially offset by lower sustaining capital spend.

While Surgold is currently using the Merian gold mine as the main ore feeder for its mill, it is working on two new mining sites in Maraba and Sabajo within its very large area of interest. The mining pit at Maraba, close to the existing Merian I and Merian II pits, is expected to become fully operational in 2020 and will help reduce operational costs at the mill. Investments have also begun at Sabajo and it is expected that the Sabajo mine will become operational during 2024. Sabajo lies about 30 km west of the Merian mill and will require construction of a haul road. In addition, exploration is ongoing at the Amazonia North and Amazonia South concessions, which could lead to the establishment of an additional mill.

7 Oil Sector

Block 58 Oil Discoveries

In September 2019, Apache Suriname began drilling the Maka Central-1 well in offshore Block 58, close to the recent oil discovery by ExxonMobil in the Stabroek block in Guyana, which is the largest offshore oil discovery in the world since 2015, with an estimated gross recoverable resource of over eight billion barrels of oil equivalent, according to ExxonMobil. Guyana and Suriname share the Guyana-Suriname Basin, and the Republic believes that the large discoveries in the offshore area of Guyana are an indication of the high potential for Suriname’s deep offshore as well.

The expectation of a material oil discovery was confirmed on January 7, 2020, when Apache Corporation and Total S.A. announced a significant oil discovery at the Maka Central-1 well. Although the discovery is still in the process of being evaluated, including results of 50 additional test wells in Block 58 that Apache has announced it plans to drill, Apache announced that oil production from Block 58 could be expected to begin in 2025. On April 2, 2020, Apache Corporation and Total S.A. announced a second significant oil discovery at the Sapakara West-1 well in Block 58. Currently, a new exploration well is being drilled on the Kwaskwasi prospect (between Maka Central-1 and Sapakara West-1), to be followed immediately with a fourth exploration well on the Keskesi prospect, southeast of the Sapakara West-1 well.

Under the terms of Staatsolie’s model production-sharing agreement (“PSA”) (which is applicable to Block 58), once oil is discovered and the field containing it is officially declared commercial, Staatsolie may elect to participate as a contractor party in the development and production operations conducted at the field, in which case Staatsolie will bear its participating interest share of all related development and production (not exploration) costs. The Government is entitled to a 6.25% royalty up front, which is payable out of gross production (less water, sediment and petroleum used in operations). After delivery of the Government’s royalty from gross production, the remaining 93.75% of crude oil output from the field is divided into “cost oil,” which is used to pay operating, development and exploration costs, subject to a quarterly ceiling and a carry-forward until all such costs are fully recovered or the PSA terminates. The remaining oil is “profit oil,” which is all oil produced from the field after deduction of royalties and cost oil. Profit oil is shared on a quarterly basis among the Government, Staatsolie and the contractor in accordance with a varying ratio that depends on a number of variables. Staatsolie, Apache and Total will also pay income tax to the Government at a rate of 36% on their taxable profit from the oil production, while Staatsolie will continue to be obligated to pay a 50% dividend to the Government. See “– Staatsolie” below. Depending on the determinations of cost oil and the respective parties’ shares in profit oil as a result of the oil extraction process, the Government expects to receive between 50% and 80% of all oil revenue generated from Block 58, after deducting related costs. As of the date of this Consent Solicitation Statement, exploration efforts in offshore Suriname have not resulted in commercial oil discoveries other than the discovery at Block 58.

Based on initial information provided by Apache and Total derived from the Maka Central-1 well and assuming a timeline and development costs similar to the Stabroek block oil discovery in Guyana, Staatsolie has projected that this single oil discovery could result in 450 million barrels of oil and provide Government revenue of between US$10 and US$15 billion over a 20-year period, depending on development and extraction costs and international oil prices. In February 2020, the Savings and Stabilization Fund Suriname (the “SSFS”) projected that Government revenue from this single oil discovery in the form of royalties, profit oil, income taxes from oil companies and Staatsolie dividends would amount to US$13.5 billion over a 20-year period. According to projections by the SSFS (based on assumptions included therein), Government revenue would be heavily frontloaded, with total Government revenue from this well beginning in 2025, increasing rapidly to approximately US$1.8 billion annually between 2028 and 2029 and declining gradually after that until 2045. Any projections regarding Government revenue from the Block 58 oil discoveries are subject to significant uncertainty, and there can be no assurance that they will be realized.

8 Staatsolie

The following table sets forth information on Staatsolie’s operating results for the years indicated.

Staatsolie Operating Results Data Year ended December 31, 2016 2017 2018 2019 (US$ millions) Gross revenue 358 434 506 499 Cost of sales (251) (247) (252) (272) Gross profit 106 186 253 227 Other expenses (64) (89) (84) (60) Operating profit 43 97 169 165 Net finance expense (60) (67) (87) (57) Gold mine profits 8 64 66 75 Profit (loss) before income taxes (9) 94 149 184 Income taxes 2 (33) (48) (61) After tax profit (loss) (8) 61 100 123 ______Source: Staatsolie Annual Reports 2016-2018, and 2019 unaudited management accounts

The following table sets forth balance sheet information on Staatsolie as of the dates indicated.

Staatsolie Balance Sheet Data As of December 31, 2016 2017 2018 2019 (US$ millions) Total assets 2,190 2,207 2,181 2,243 Non-current assets 1,940 1,944 1,910 2,006 PP&E 1,598 1,603 1,582 1,682 Investment in goldmines 285 277 283 275 Other non-current assets 57 64 45 49 Current assets 250 263 271 237 Cash and short-term deposits 17 47 43 32 Other current assets 233 216 228 205

Total liabilities 1,090 1,037 966 967 Debt 760 705 724 699 Other non-current liabilities 140 143 93 93 Current liabilities 190 189 149 175 Total equity 1,100 1,170 1,215 1,276 Total equity and liabilities 2,190 2,207 2,181 2,243 ______Source: Staatsolie Annual Reports 2016-2018, and 2019 unaudited management accounts

Staatsolie has historically paid (either in cash or as a settlement) corporate income taxes to the Government at a rate of 36% and has paid 50% of its after-tax profits as dividends to the Government. Staatsolie and the Government have agreed to a formal dividend policy whereby Staatsolie will pay out 50% of its net income as dividends annually through 2026. Total dividends and tax payments or settlements by Staatsolie to the Government for 2018 amounted to US$122 million. Of this amount, US$92.0 million was settled as Energie Bedrijven Suriname N.V. (“EBS”) subsidies, US$35.4 million was paid in cash by Staatsolie to the Government, and US$5.2 million remained unpaid as of the end of 2018. EBS subsidies channeled through Staatsolie consist of unpaid deliveries of fuel for the EBS generators and unpaid deliveries of electricity from the Staatsolie electricity-generation subsidiary SPCS. For 2019, based on Staatsolie’s unaudited management accounts, total dividend and tax payments or settlements by Staatsolie to the Government amounted to US$148.7 million on an accrual basis. Of this amount, US$100.2 million was settled as EBS subsidies, US$17.2 million was paid in cash by Staatsolie to the Government

9 and US$31.3 million remained unpaid as of the end of 2019. The large unpaid amount is mainly attributable to US$30.8 million in dividend payments that were due in 2019 but were not paid due to restrictions imposed by creditor banks on the cash positions of Staatsolie. The fact that the Government did not receive this dividend payment in 2019 contributed to the decrease in Government mining revenue (which includes revenue from oil and mineral extraction operations) in 2019 as compared to 2018. Government mining revenue is accounted for on a cash basis in Government fiscal accounts, as required by the IMF’s Government Financial Statistics (“GFS”) methodology. Due to the recent decrease in the international price of oil and creditor restrictions, Staatsolie has announced that no dividend payments will be made to the Government in 2020.

The following table sets forth the amount of payments made by Staatsolie to the Government in the years presented.

Staatsolie Contributions to the Government(1) Year Ended December 31, 2015 2016 2017 2018 2019(2) (US$ millions) 61.2 12.5 127.1 122.3 148.7 ______(1) Contributions comprise income taxes for Staatsolie, SPCS, and GOw2, dividends, and fuel taxes. (2) Estimated based on provisional settlement sheets. Source: Ministry of Finance, Staatsolie

Electricity Sector

The Government is currently continuing its restructuring and reform of Suriname’s electricity sector. All power generation assets are planned to be centralized under SPCS, in order to reduce costs and create greater efficiencies. This will reduce the necessary scope for tariff adjustments going forward. If energy generation costs are lower, the tariffs will not need to be raised as much to eliminate electricity subsidies. The Government has estimated that annual increases of approximately 15% would be sufficient to eliminate all subsidies by mid-2024. The continuation of the electricity reform, including the necessary tariff and tariff structure adjustments, is subject to decisions of the incoming Government.

As part of the Government’s planned restructuring and reform of the electricity sector, in August 2019, the National Assembly approved the termination of the 1958 Brokopondo Agreement and a modification of the post- mining obligations of Suriname Aluminum Company, L.L.C. (“Suralco”), a company indirectly 60%-owned by Alcoa and 40%-owned by Australian company Alumina Limited, as a result of which the Afobaka hydropower plant (the “Afobaka HPP”), Suriname’s largest power station, was transferred by Suralco to the Government. In January 2020, the Government subsequently transferred the Afobaka HPP to Staatsolie Power Company Suriname N.V. (“SPCS”), which is indirectly 100%-owned by the Government. As a result of the transfer of the Afobaka HPP, all the electricity generation assets in Suriname are now directly or indirectly owned by the Republic.

The current Government has planned that EBS would transfer its two adjacent power stations, named DPP1 and DPP2, and all other assets necessary to the operation and maintenance of DPP1 and DPP2 (collectively, the “Saramaccastraat Thermal Plant”) to SPCS. In the same operation, the Government has also planned to eliminate or refinance all long-term debt and most short-term debt of EBS in order to strengthen EBS’s financial condition. Following the transfer of the Saramaccastraat Thermal Plant, substantially all of the electricity generation assets in Suriname would have been consolidated under SPCS. The continuation of the electricity reform plan is subject to decisions of the incoming Government, and there can be no assurance that the incoming Government will continue the reform in its currently planned form.

In December 2019, the IDB approved a US$30 million financing to improve rural off-grid electrification in Suriname, including the provision of renewable energy systems, and to advance the implementation of energy reform through support to the Energy Authority of Suriname (EAS) and operational management of EBS. The US$30 million credit line has a 25 year amortization period and a LIBOR-based interest rate. This project is also aimed at extending the grid and increasing the reliability of the power system, while promoting the diversification of the energy matrix through financing pre-investment activities related to renewable energy and natural gas.

10 In January 2020, Advisian Group Pty Ltd (a wholly-owned subsidiary of WorleyParsons Limited) (“Advisian”) began conducting a study to identify and recommend the specific power generation assets to be transferred from EBS to SPCS and to determine the investments needed in order to achieve the optimal efficiency of the Saramaccastraat Thermal Plant for the remaining economic lifespan of its existing equipment. There are no assurances or indications that the incoming Government would wholly or partly implement any recommendations from the Advisian study when it is completed.

Inflation

The 12-month inflation rate was 4.2% in December 2019. The 12-month inflation rate increased to 17.6% in March 2020 and 26.2% in April 2020. The high monthly inflation rates in March and April 2020 resulted from the depreciation of the SRD that occurred during those periods. According to the IMF’s World Economic Outlook (April 2020), Suriname is projected to have CPI inflation (year-on-year increase of monthly average prices) of 27.9% for 2020 and 22.7% for 2021.

Balance of Payments

In 2019, the current account reflected a continuation of the trends in 2018. The strong rebound in private investment activity led to a continued increase in imports of investment goods, leading to a larger current account deficit. For 2019, the current account deficit amounted to US$410.2 million, compared to a deficit of US$118.0 million in 2018. According to the IMF’s World Economic Outlook (April 2020), Suriname had a current account deficit of 10.7% for 2019. The current account improved in the first quarter of 2020 with a surplus of US$39 million, compared to a deficit of US$17.7 million in the first quarter of 2019. The improvement was mainly attributable to the trade balance, which changed from a surplus of US$148.3 million in the first quarter of 2019 to a surplus of US$221.0 million in the first quarter of 2020. Prior to Suriname’s publication of its first quarter 2020 balance of payments data, the IMF’s World Economic Outlook (April 2020) projected a deterioration of the current account deficit to 12.0% of GDP in 2020 and 11.0% in 2021.

Exports of goods and services increased in 2019 by 3.8%, or US$81.3 million, compared to 2018, while imports of goods and services increased by 14%, or US$212.4 million. As a result of the full-year impact of the operations at the Merian gold mine and mill, gold exports increased to US$1,609 million in 2017. Gold exports further increased to US$1,632 million in 2018 and to US$1,732 million in 2019. The increase in imports from 2018 to 2019 reflected a substantial increase in imports of investment goods from US$484.1 million in 2018 to US$539.9 million in 2019. Imports of transport equipment increased to US$218.5 million in 2019 from US$127.9 million in 2018, a 70.8% increase.

In 2019, the surplus in the financial account increased to US$775.0 million from US$217.9 million in 2018. The increase was largely due to an increase in capital repatriation by residents through the banking system to finance investments in the mining sector, and due to capital repatriation by banks in order to deposit part of their required reserves in the CBvS. The financial account deteriorated in the first quarter of 2020 to a deficit of US$63.1 million, as compared to a surplus of US$194.3 in the first quarter of 2019, resulting in a decrease in international reserves.

11 Monetary and Financial System

The analytical accounts of the CBvS are equivalent to the CBvS’s balance sheet, arranged according to a standard IMF format that allows for an economic analysis of the impact of changes in the accounts on the economy. Analytical Accounts of the CBvS(1) As of December 31, 2015 2016 2017 2018 2019 (SRD millions) Foreign assets (net) 378.7 1,139.5 511.3 1,988.1 2,391.1 Foreign assets 1,415.0 3,479.6 3,163.1 4,552.0 4,811.1 Foreign liabilities 1,036.3 2,340.1 2,651.7 2,563.9 2,420.0

Claims on Government (net) 2,218.0 1,435.9 1,947.3 1,797.2 3,248.3 Claims on Government 2,507.6 2,438.0 2,361.0 2,354.1 3,745.5 Liabilities to Government 289.6 1,002.1 413.7 556.9 497.2 of which: in foreign currency 273.7 1,186.5 597.7 752.3 378.4

Claims on other depository corporations 163.1 33.7 236.5 39.1 691.7 of which: in foreign currency 6.6 8.8 89.0 33.1 685.9

Claims on other resident sectors 12.1 12.0 11.9 16.0 20.1

Shares and other equity 193.9 (168.0) (608.0) (628.9) (696.9)

Other assets/liabilities (net) (23.8) (215.1) (359.2) (506.0) (2,544.8)

Monetary base 2,601.8 3,004.2 3,674.2 4,975.3 9,592.8 Currency in circulation 1,124.3 1,384.1 1,549.8 1,756.5 2,263.4 Liabilities to other depository corporations 1,344.4 1,544.5 1,995.1 3,092.4 7,190.7 Liabilities to other resident sectors 133.0 75.6 129.4 126.3 138.7 ______(1) All figures in table are preliminary data. Source: CBvS

The following table sets forth information on Suriname’s international reserves and foreign currency position as of the dates indicated.

CBvS Official Reserve Assets and Other Foreign Currency Assets As of December 31, 2015 2016 2017 2018 2019 (US$ millions) Official reserve assets 330.2 381.1 424.4 580.7 647.5 1. Foreign currency reserves 221.9 302.3 334.3 476.3 521.6 a. Securities 21.9 10.0 69.9 170.9 189.7 b. Currency and deposits 200.1 292.3 264.5 305.4 331.9 - Other central banks, BIS, and IMF 196.5 291.8 257.5 286.5 301.9 - Banks outside of Suriname 3.6 0.5 7.0 18.8 30.0 2. Reserve position in the IMF 0.0 12.4 13.1 12.8 12.7 3. SDRs 62.7 37.3 38.0 34.9 32.2 4. Monetary gold 45.6 29.1 39.0 56.6 80.9 Other foreign currency assets, not included in official reserves 21.1 70.5 11.2 43.8 113.5 1. Securities - - - - 13.1 2. Deposits 22.3 92.3 16.0 39.7 98.0 3. Financial derivatives -2.3 -23.6 -6.9 2.2 - 4. Gold 1.7 1.8 2.0 2.0 2.4 Memorandum items International reserves (in SRD) (1) 1,308 2,801 3,139 4,296 4,790 ______(1) Does not correspond to the US$ amount using the CBvS buying rate, due to differences in non-U.S. dollar exchange rates. Source: CBvS

12 Following the end of the economic crisis period of 2015 and 2016 and the economic rebound in 2018, the CBvS began to accumulate reserves more aggressively in 2019. The CBvS practice of maintaining foreign currency swaps with local commercial banks was gradually discontinued during 2019. The CBvS began to buy artisanal gold (gold extracted from informal digging) using SRDs in mid-2019, while using monetary policy instruments to sterilize the increase in local currency created by such purchases and selling part of the foreign currency proceeds of the sales of such gold back into the market. Purchases of artisanal gold against SRDs increased from SRD 128.9 million in 2018 to SRD 253.7 million in 2019.

Prior to 2019, the reserves accumulation policy of the CBvS involved accumulating reserves only passively by retaining the foreign exchange component of foreign-currency royalties, tax, and dividend payments received from mining companies (which includes oil and mineral extraction companies). The passive policy had the purpose and effect of solidifying confidence in the local currency after the sharp depreciation that occurred in 2016, and it contributed to the stabilization of the exchange rate that began in late-2016. In 2019, the CBvS modified its reserves accumulation policy by beginning to increase purchases of gold with a combination of SRD and U.S. dollars, compared to purchases using exclusively U.S. dollars previously. Part of the additional foreign currency inflows from the sales of such gold were sold back into the market with the purpose of increasing the depth of the foreign exchange market in Suriname. Before 2019, small gold exporters did not sell their foreign exchange proceeds into the local market unless necessary to cover local currency expenses, and they instead invested them in foreign currency financial assets. This had rendered the foreign currency market unusually thin in Suriname, prompting banks to curtail monthly foreign currency withdrawals. The new policy of the CBvS introduced in 2019 deepened the foreign currency market, and bank limitations on foreign currency withdrawals were removed during 2019, while international reserves increased.

Also as part of its more active reserves accumulation policy, in June 2019 the CBvS established a new requirement for commercial banks in Suriname to deposit part of their required foreign currency reserves with the CBvS, specifically 100% of the euro required reserves and 50% of the U.S. dollar required reserves. Other central banks around the world generally include all commercial bank reserves on their balance sheets, and the fact that only part of commercial bank reserves are on the CBvS balance sheet means that the CBvS foreign currency reserves will continue to be significantly underrepresented when compared with other central banks around the world. As a result of this new requirement, the stock of commercial banks’ required foreign currency reserves held on the CBvS balance sheet increased from US$79.9 million as of December 31, 2018 to US$425.7 million as of December 31, 2019. The ratio of U.S. dollar required reserves was reduced to 40% in January 2020. As of December 31, 2019, the required foreign currency reserves of the banking system amounted to US$553.1 million and €140.2 million in U.S. dollars and euros, respectively. Of this amount, US$272.1 million and €137.3 million was held at the CBvS. The remaining required foreign exchange reserves were held on the balance sheets of the commercial banks and amounted to an equivalent of approximately US$290 million.

As a result of the introduction of a more active reserves accumulation policy in 2019 as described above, international reserves increased to US$647.5 million, or 3.3 months of import coverage, as of December 31, 2019, as compared to US$580.7 million, or 2.3 months of import coverage, as of December 31, 2018. Excluding imports by oil and mining extraction companies, which are financed entirely by such companies’ own foreign exchange holdings or proceeds and in respect of which the CBvS is not required to hold reserves, the import coverage ratio remained stable at 4.8 months of imports as of December 31, 2018 and 4.7 months of imports as of December 31, 2019.

Following a routine data request by the Ministry of Finance in January 2020, it was alleged that CBvS Governor Robert van Trikt had misappropriated CBvS funds over a period of approximately nine months. In February 2020, Mr. van Trikt was removed from his position as the Governor of the CBvS and was arrested on February 6, 2020, together with his former business partner. Criminal investigations by the police and the procurator general and internal investigations by a special team appointed by the Procurator General of Suriname and the Supervisory Board of the CBvS are ongoing. The ongoing investigation centers on allegations of a fictitious car loan, overpriced contracts to benefit friends and purchases of cars.

In early 2020, the Surinamese Bankers Association (the “SBV”), an organization of local commercial banks, alleged that approximately US$100 million of the required cash reserves of commercial banks at the CBvS could not be accounted for. In subsequent meetings, the CBvS demonstrated to the SBV that the approximately

13 US$100 million in question had been sold to commercial banks and cambios to finance imports of goods and services. As a result of negotiations between the commercial banks and the CBvS, in April 2020 the local commercial banks and the CBvS signed a repayment agreement, under which the CBvS must repay to the relevant commercial banks an amount of approximately US$200 million within eight years. The US$200 million consists of the US$100 million of cash reserve funds discussed above and US$100 million of funds placed by commercial banks in term deposits with the CBvS. In addition, the CBvS agreed with commercial banks to install a joint oversight committee to restrict its investment decisions, in order to ensure that the international reserves continue to be invested in accordance with international best practices as recommended by the IMF and to restrict its sales of gross foreign exchange assets for the entire gross amount due to commercial banks.

All international reserves of the CBvS are held in liquid deposits or invested abroad in accordance with IMF standards and the CBvS’ policies and procedures with regard to management of reserves, and in full compliance with applicable laws and regulations.

Mr. Maurice Roemer was appointed Governor of the CBvS on February 22, 2020. He previously was the CEO of Self Reliance N.V., a local insurance company in Suriname, a position he had held since 1999, and had served as Chair of the Board of Supervisors of Hakrinbank.

Banking and Financial Institutions

As of December 2019, the financial sector of Suriname consisted of 10 commercial banks, one secondary bank, one development bank, four finance and investment companies, 24 credit unions, 13 insurance companies (four life insurance, seven non-life insurance, two funeral insurance), 40 pension funds, five provident funds, 25 foreign exchange offices, seven money transfer houses and one stock exchange.

Banks in Suriname are required to be compliant with IFRS beginning with the 2020 financial reporting year. This will also require comparative figures for 2019, which also must be prepared in accordance with the IFRS.

The combined capital adequacy ratio of the banking sector was 11.4% in December 2019.

The CBvS and the Ministry of Finance are working to establish a bank resolution framework through the establishment of a bank resolution committee and the passage of appropriate legislation in line with international standards. In 2016, a first draft of a bank resolution law was prepared with assistance from the IMF. In December 2018, the working group submitted a draft of this law for screening to the legal department. The CBvS intends to present the draft law to the National Assembly after the new Government has been established. This law, now entitled the Credit Institutions Recovery and Settlement Act and also known as the Banking Resolution Act (HAK), enables the CBvS to implement preventive, early intervention, and resolution measures against credit institutions established in Suriname to prevent a banking crisis. Furthermore, the law ensures the orderly settlement of failing banks and sets the framework for supervision in the event of an impending banking crisis. The introduction of the Bank Resolution Act makes it necessary to make certain amendments to the Banking and Credit Supervision Act (WTK). A number of adjustments have been made in response to the Annual Accounts Act and the relationship with the external auditors of the institutions. The Deposit Insurance Act will be finalized after passage of the Bank Resolution Act. The law regarding the Credit Bureau is currently at the National Assembly for discussion and adoption. The draft Insurance Company Supervision Act is currently at the Ministry of Finance, with the expectation that it will be presented to the National Assembly in mid-2020.

14 The following table sets forth the analytical accounts of commercial banks and finance companies in Suriname as of the dates presented.

Analytical Accounts of Commercial Banks and Finance Companies As of December 31, 2015 2016 2017 2018 2019 (SRD millions) Foreign assets (net) 2,618.0 5,309.2 5,853.2 6,438.1 3,472.2 Foreign assets 3,012.2 5,988.6 6,586.9 7,137.2 4,266.5 Foreign liabilities 394.2 679.3 733.7 699.2 794.3

Claims on the government (net) 417.7 914.5 1,900.2 1,698.8 1,728.9 Claims on the government (1) 644.3 1,152.9 2,225.9 2,342.9 2,413.9 of which: in foreign currency 52.9 476.3 802.0 799.9 1,768.4 Liabilities to government 226.6 238.4 325.7 644.1 684.9 of which: in foreign currency 4.0 12.6 23.1 38.0 39.7

Claims on the CBvS (net) 1,301.3 1,948.3 2,116.8 3,319.9 7,203.0 Claims on the CBvS 1,466.8 1,983.2 2,364.7 3,366.4 7,928.2 of which: in foreign currency 136.4 465.7 485.7 675.2 4,475.7 Liabilities to the CBvS 165.3 34.9 247.9 46.5 725.2 of which: in foreign currency 7.6 8.0 96.3 38.2 718.0

Claims on other resident sectors 6,299.0 8,142.2 8,204.3 8,149.5 8,261.9 Claims on other financial corporations 189.9 241.4 178.2 218.0 153.5 of which: in foreign currency 52.9 98.2 120.3 142.5 51.4 Claims on non-financial public corporations 162.3 319.8 357.1 614.2 693.0 of which: in foreign currency 127.0 273.1 304.0 393.4 357.5 Claims on other resident sectors(2) 5,946.8 7,581.0 7,669.0 7,317.3 7,415.5 of which: in foreign currency 2,267.2 3,940.0 3,915.4 3,330.0 2,861.6

Shares and other equity 944.3 955.8 1,248.0 1,377.3 1,460.6

Other assets/liabilities (net)(2) 160.0 445.4 658.9 675.6 1,015.5

Liabilities included in broad money 9,533.7 14,913.0 16,167.6 17,553.3 18,139.7 Transferable deposits 3,851.3 5,610.6 6,375.5 7,216.0 7,833.7 Other deposits 5,682.4 9,302.4 9,792.1 10,337.4 10,305.9 ______(1) Treasury notes and coins held by the ODCs are reflected in “Claims on the government.” (2) Includes accrued interest on non-performing loans on other resident sectors. Source: CBvS

15 Money Supply

The following table presents information on money supply in Suriname as of the dates presented.

Broad Money As of December 31, 2015 2016 2017 2018 2019 (SRD millions) Broad Money M2(1) 10,639.3 16,193.0 17,601.5 19,196.2 20,289.2 Other deposits (2) 5,694.0 9,314.6 9,804.3 10,353.6 10,326.3 of which: in foreign currency 3,593.5 6,928.6 7,213.5 7,248.8 6,637.9 Securities other than shares 18.9 38.4 42.7 41.6 53.2 M1(3) 4,926.4 6,840.1 7,754.5 8,801.0 9,909.7 Currency outside banks 972.6 1,204.5 1,304.6 1,516.6 1,985.8 - Issued by the CBvS 952.0 1,185.0 1,289.5 1,504.6 1,973.1 - Issued by the Government 20.6 19.5 15.1 12.0 12.7 Transferable deposits 3,953.8 5,635.6 6,449.9 7,284.4 7,923.9 of which: in foreign currency 1,977.1 3,543.2 3,968.7 4,217.9 4,160.5 ______(1) Includes treasury notes and coins in addition to the broad money liabilities of depository corporations. (2) Includes domestic and foreign currency time and savings deposits. (3) Includes domestic and foreign currency deposits. Source: CBvS

Foreign Exchange

In April 2018, customs authorities in the Netherlands seized a shipment of euro banknotes from Suriname with a value of €19.5 million at the Schiphol airport in Amsterdam. The banknotes were being transported by the CBvS on behalf of three Surinamese commercial banks pursuant to a banknotes trade agreement between the CBvS and the Bank of China. Since 2013, regular transports of euro banknotes from commercial banks in Suriname have been taking place in this way. According to the report of the seizure, the seizure took place on suspicion of money laundering, based on a number of indicators. According to the relevant Surinamese banks, the banknotes trade agreement between the CBvS and the Bank of China meets the need of Surinamese banks to export surplus euro notes and obtain U.S. dollars required for foreign trade, which became increasingly difficult due to de-risking at their traditional correspondent banks. On November 5, 2019, a Dutch court held that approximately two-thirds of the relevant money shipment should be returned to its owners and, with regard to the remaining funds, asked the parties to reach a settlement, which the Surinamese banks declined to do. In December 2019 the court agreed to lift the seizure at the request of the CBvS but the remaining funds have not yet been returned to the CBvS.

The seizure of banknotes led to a gradual destabilization of the Surinamese foreign exchange market. The foreign exchange market in Suriname is relatively small compared to the volume of exports and imports. Exports and imports of goods and services amounted to approximately US$4.44 billion in 2018, while the entire volume of the cash and electronic foreign exchange market in Suriname only amounted to US$325 million and €455 million in 2018. The cash element of the foreign exchange system in Suriname is relatively large due to the large inflow of euro cash remittances from visitors and the large U.S. dollar outflows by Surinamese travelling abroad. This market was severely disrupted as the CBvS and local banks became unable to export euro cash or import U.S. dollar cash. As a result, parallel markets for euro and U.S. dollar cash re-emerged, with the Surinamese dollar appreciating relatively against the euro and depreciating relatively against the U.S. dollar. The difference between the global market and the domestic cross rate between the U.S. dollar and euro remained at a level of approximately 10% during most of 2019. Beginning in July 2019, the U.S. Federal Reserve Bank, as agreed with the CBvS, shipped U.S. dollars to Suriname, partially easing the problem created by the seizure by the Dutch authorities. The lead-up to the elections in May 2020 also impacted the level of confidence in the Surinamese dollar, further pressuring the SRD:US$ exchange rate. There has been a long tradition of exchange rate devaluations after elections and this has cast doubt on the stability of the current exchange rate. While it will technically not be possible for the SRD to be devalued after the election because there is no longer a fixed exchange rate regime and the exchange rate is now freely determined and publicly posted at banks and cambios, this has not prevented concerns by Suriname residents about potential exchange rate changes, some of whom have hoarded U.S. dollars, thereby pressuring the exchange

16 rate. In addition, the alleged fraud scandal at the CBvS led to episodes of foreign exchange cash hoarding. As a result, the SRD depreciated from around SRD 8.00: US$1.00 to SRD 14.75: US$1.00 at the end of April 2020 and to SRD 18.50: US$1.00 just before the elections in late May. Immediately after the elections, the SRD appreciated to approximately SRD 15.00: US$1.00 and appreciated further to SRD 14.50: US$1.00 as of June 26, 2020.

On March 22, 2020 the Government passed a law temporarily restricting the use of foreign currency cash in the Surinamese economy. Domestic and international electronic foreign currency transactions were unaffected by the change in the law. The law also stipulated that most domestic transactions should be denominated in local currency.

The following table sets forth the high, low, average and period end SRD to U.S. dollar exchange rates in the informal market for the periods indicated below.

Informal Market Exchange Rates(1) High Low Average Period End (SRD per U.S. dollar) 2015 4.73 3.41 3.68 4.72 2016 8.63 4.74 6.73 7.60 2017 7.84 7.54 7.66 7.61 2018 7.80 7.55 7.63 7.73 2019 8.75 7.78 8.26 8.60 2020 (through June 26, 2020) 18.50 8.65 12.84 14.50 ______(1) The “informal foreign exchange market” in Suriname comprises foreign currency transactions at freely determined rates involving cambios and banks. The CBvS only monitors the transactions and records the exchange rates used in those transactions. There can be no assurance that such informal market rates are an accurate or complete reflection of all foreign exchange transactions involving banks or cambios. Source: CBvS

Public Sector Finances

For 2019, the fiscal deficit is estimated to have decreased slightly to an estimated 7.8% of GDP primarily due to an increase in direct non-mining tax revenue, which was offset in part by a relative decrease in revenue from mining activities. The increase in non-mining tax revenue was attributable to general growth in the economy in 2019. Mining revenue (which includes revenue from oil and mineral extraction operations) is estimated to have decreased from 8.3% of GDP in 2018 to 6.5% of GDP in 2019, mainly due to a temporary work stoppage at the Rosebel gold mine and mill and the accelerated depreciation of the investments by Rosebel Gold Mines in the Saramacca concession. The temporary work stoppages were due to illegal gold miners found operating in the mining pits. In addition, Staatsolie did not pay to the Government US$30.8 million (approximately 0.8% of GDP) in dividends that were due to be paid before the end of 2019. This non-payment was due to restrictions imposed by Staatsolie’s creditor banks on its cash position.

Due to Suriname’s high commodity dependence (oil and gold), the recent and ongoing commodity price shock has had weakened Suriname’s fiscal position. The ongoing shock is likely to worsen the fiscal accounts through a decline in tax and non-tax revenue from Staatsolie and reduced tax receipts as the economy contracts. The Government nonetheless expects certain factors to have a positive effect on its fiscal position over the next few years. First, the end of the accelerated depreciation of Newmont Corporation’s investments in the Merian gold mine and mill and the starting of full commercial operations of the Saramacca concession by Rosebel Gold Mines will increase revenue beginning in 2020. The bulk of the investments in the Merian Gold Mine had been fully depreciated by the end of 2019 and will lead to an increase in taxable profits, which are subject to a tax rate of 36%. The WGFP and the SSFS project that Newmont Corporation’s income tax payments will therefore increase from 2019 levels gradually by approximately 2.1% of GDP cumulatively in 2020 and 2021. At the same time, the expiration of retroactive wage and health system pension contribution payments will reduce expenditure beginning in July 2020.

Other planned improvements will be subject to decisions of the incoming Government. Based on existing electricity reform plans, the planned reduction in electricity subsidies are projected to reach approximately 4.4% of

17 GDP when the reform is fully implemented during 2024. In addition, the continuation of the plans to introduce VAT are subject to decisions of the incoming Government. Based on existing reform plans, the VAT tax would be expected to increase fiscal revenue by approximately 2% of GDP after the reform is fully implemented in 2023.

The following table sets forth the fiscal accounts of the Government for the periods indicated. Data presentation is in accordance with international definitions and the methodology as stipulated in the IMF’s Government Finance Statistics Manual (“GFSM”) 1986 and certain elements of GFSM 2001. The Government’s statistics conform to the IMF’s General Data Dissemination Standard (GDDS).

Government Operations(1) 10 months ended Year ended December 31, October 31, 2015 2016 2017 2018 2019(1) (SRD millions) Revenue 3,649.7 3,519.1 5,114.4 5,970.0 5,481.9 Tax revenue 2,720.0 2,586.3 3,544.4 4,142.4 3,866.7 Direct taxes 1,124.8 1,226.3 2,002.3 2,190.0 2,065.6 Indirect taxes 1,595.2 1,360.0 1,542.1 1,952.4 1,801.1 Non tax revenue 929.7 932.8 1,570.0 1,827.6 1,615.2 Grants 0.0 0.0 0.0 0.0 0.0 Expenditure (GFS basis) 5,104.7 5,611.9 7,134.7 7,933.9 7,296.5 Arrears payments 149.3 105.1 219.5 992.8 725.0 Expenditure (cash basis) 5,254.0 5,717.0 7,354.2 8,926.8 8,021.5 Wages and salaries 1,532.8 1,602.2 1,922.5 2,414.4 2,644.3 Goods and services 1,272.8 1,092.7 1,119.0 870.8 788.4 Subsidies(2) 1,768.7 1,769.9 2,403.7 3,500.7 2,786.0 Interest 248.7 515.8 671.5 920.4 800.2 Capital expenditure 431.0 736.4 1,237.5 1,220.5 1,002.6 Statistical discrepancy 146.1 (10.9) 87.2 64.4 -1.2 Fiscal balance (1,601.1) (2,081.9) (2,107.5) (2,028.3) (1,814.6)

Financing 1,601.1 2,081.9 2,107.5 2,028.3 1,814.6 Equity acquisition 0.0 (474.3) (70.9) 562.9 735.1 External (net) 267.9 4,713.1 983.4 327.1 628.9 - Disbursements 387.9 5,887.3 1,381.8 1,380.7 1,074.1 - Amortization 120.0 1,174.2 398.3 1,053.6 445.2 Domestic (net) 1,247.4 (45.0) 1,315.6 (798.6) 1,176.9 CBvS(3) 1,713.5 (401.6) 524.3 (151.6) 1,304.1 - Claims on government 1,865.8 (69.7) (78.1 (7.2) n.a. - Liabilities to government 152.3 331.9 (602.4) 144.4 n.a. Other depository corporations(3) (327.7) 405.3 860.3 49.6 79.2 Other financial corporations 10.9 28.8 (21.1) (1.7) 42.4 Nonfinancial corporations 85.8 (2,084.4) 50.9 2,234.7 (248.8) Others and arrears (149.3) (105.1) (219.5) (992.8) (725.0) ______(1) Preliminary data. (2) “Subsidies” include any payments by the Government to companies or individuals. In Suriname, most such payments consist of transfers to individuals, including health, education, and disability payments. Electricity subsidies are partly off-budget and are reflected in the fiscal accounts as under-recorded revenue or expenditure on goods and services. Electricity subsidies have been recorded as both revenue and expenditure items beginning in 2017. (3) Data derived from the balance sheets of the CBvS and other depository corporations. Sources: CBvS, Ministry of Finance and Suriname Debt Management Office.

18 The current Government has implemented broad structural reforms to eliminate Suriname’s dependence on revenue from extractive industries, to smooth revenue volatility, to streamline procurement, and to improve fiscal management. The continuation or amendment of these policies will be subject to decisions of the incoming Government. The current Government’s broad structural reforms have included the implementation of a comprehensive set of tax reforms, which have been intended to be introduced gradually through the end of 2022. These tax reforms include the following:

 Introduction of VAT. VAT had been planned to be introduced in 2018 but this was postponed for operational reasons, as more time was needed for tax authorities to develop the capabilities to introduce it efficiently. VAT will replace the sales tax and other minor indirect taxes with an expected introduction date in 2021 and a full-year effect in 2022. VAT legislation has been prepared and is planned to be submitted to the National Assembly during 2020.

 Income tax reform. VAT implementation will be accompanied by a gradual income tax reform that will reduce the complexity of the system and increase compliance. It is intended to be revenue-negative to reduce its impact on income-generating activities. The tax reform and corresponding administrative reforms in the revenue administration are being carried out with support from the IDB and IMF.

 Modernization of customs administration. A significant portion of revenue is collected on goods entering the country, not only as import duties or statistical or consent fees, but also as a local sales tax. Significant progress on the reform of such duties, fees and taxes has occurred with the modernization of the IT system and the purchase of container scanners. The modernization of the related physical infrastructure is ongoing and scheduled for completion during 2020.

 Elimination or modernization of small taxes. The Government will eliminate minor taxes or modernizing them and increasing their yield to simplify the system and its administration. This is intended to be carried out in conjunction with the VAT introduction and direct tax reform.

In order to execute these reforms, the Government secured a US$40 million project loan from the IDB in June 2018, which is being used to implement VAT, modernize customs and tax administration, expand the new integrated public sector financial management information system (IFMIS) framework and train personnel at various parts of the Ministry of Finance.

In December 2019, the National Assembly also approved a law requiring the use of a unique taxpayer identification number (TIN) that will be implemented across all taxes and used also to identify social services recipients. This requirement is expected to improve tax law enforcement and the targeting of social benefits.

Budget implementation is being strengthened by the improved administrative, managerial, and control mechanisms embedded in a new integrated public sector financial management information system (“IFMIS”). Its base functionality for automating expenditure management has been fully in place since 2017, while additional modules, such as for revenue, debt, procurement planning, or interactive online transparency, are planned to gradually come online between 2019 and 2021. The IFMIS will allow increased transparency, strengthen top-down budgeting and reduce the operating inefficiencies and costs of the public financial management system.

A new centralized procurement department within the Ministry of Finance is planned to be established in 2021 in order to harmonize procurement processes and administer procurement processes for all line ministries. Public sector procurement is currently handled independently by the separate line ministries. This centralization is supported by the IFMIS software and technical assistance from the IDB. The final steps of the implementation of the reform will take place after passage of the Public Procurement law, which is planned to be presented to the National Assembly during 2020.

The CBvS and the Ministry of Finance jointly established the Foreign Exchange Cash Flow Committee in February 2020 to ensure that all foreign exchange flows to and from the Government and the CBvS, in particular the receipt of mining revenue and payments for Government debt service, are planned in a comprehensive and consistent manner.

19 Government Debt

Suriname’s public external debt was US$1,987 million or 54.3% of GDP as of December 31, 2019. The Government’s total debt-to-GDP ratio was 75% as of December 31, 2019 based on estimated 2019 GDP data. Public external debt amounted to approximately US$2,005 million as of April 30, 2020. As of April 30, 2020, approximately 41% of Suriname’s public external debt was represented by Suriname’s outstanding 2026 Notes and 2023 Notes and loans from commercial lenders, approximately 32% was represented by loans from multilaterals, mainly the IDB, and approximately 27% was represented by bilateral loans, including loans from the Chinese government and China Eximbank. Debt to multilateral lenders and bilateral lenders have relatively low interest rates and long-term repayment periods. The Republic has no external debt payment arrears outstanding as of the date of this Consent Solicitation Statement. The State Debt Act was amended on November 7, 2019 to increase the total debt ceiling from 60% of GDP to 95% of GDP.

The Republic sold part of its SDR position at the IMF in order to fund its March 26, 2020 interest payment on its 2026 Notes. If Suriname is to be able to access its remaining SDRs, this would be to subject to IMF conditionality.

The following table sets forth the composition of Suriname’s Government debt as of the dates indicated.

Government Debt As of December 31, 2015 2016 2017 2018* 2019* (US$ millions, unless indicated otherwise) Government debt Domestic debt(1) 945.5 939.9 720.4 775.7 991.8 CBvS 618.1 602.7 314.0 311.6 483.8 Other depository corporations 145.2 224.9 287.1 348.0 382.0 Private sector 125.8 112.3 119.3 116.1 126.0 - Undisbursed amounts and non-called guarantees (2) 56.1 0.0 0.0 0.0 0.0 External debt (3) 879.6 1,425.4 1,682.7 1,715.4 1,987.2 - Undisbursed amounts and non-called guarantees(2) 338.3 0.0 0.0 0.0 0.0 Total Government debt 2,216.5 2,365.3 2,403.1 2,491.1 2,979.0

Total debt service 340.8 485.5 213.3 336.1 262.3 Total public debt (as a percentage of GDP)(4) 53.7 57.3 88.1 81.5 86.8 Domestic debt(1) (as a percentage of GDP)(4) 22.9 22.8 26.4 25.4 28.9 External debt(3) (as a percentage of GDP)(4) 21.2 34.5 61.7 56.1 57.9 External debt service(5) (as a percentage of exports) 2.9 13.9 6.1 10.0 7.4 Memorandum items GDP (SRD millions)(6) 16,357.2 19,489.4 24,035.4 25,806.0 28,466.7 Exports 1,856.5 1,625.2 2,195.1 2,301.2 2,373.5 ______(1) Domestic debt of the central government, excluding other public sector internal debt such as central bank bills, quasi-fiscal debt, municipalities and other decentralized institutions. (2) Beginning in 2016, undisbursed amounts and non-called guarantees ceased to be part of the definition of central government debt and are no longer recorded as debt, consistent with international best practices. (3) External debt of the central government, excluding the CBvS and decentralized institutions. (4) The debt ratio is calculated by the SDMO by using the end-of-period SRD:US$ exchange rate and the average annual nominal GDP in SRD to derive a US$ GDP figure, which in turn is used as a denominator to derive debt ratios using end-of period debt stocks. An alternative methodology would translate end-of period debt stocks into SRD and calculate the ratio using SRD GDP as the denominator. The results of these two methodologies can vary significantly in cases of exchange rate changes. The IMF considers both methodologies acceptable. (5) External debt service includes commissions, interest and principal. (6) 2019 GDP is estimated by the WGFP. Official 2019 GDP data will not be available before August 2020. * Preliminary data. Note: Data presented in accordance with the national definitions established by the SDMO. Data through the end of 2015 includes amounts of contracted debt yet to be drawn and non-called guarantees. In accordance with the State Debt Act, exchange rates used to convert foreign currency debt to SRD and vice versa are the exchange rates quoted by the CBvS as at the last banking day of the calendar year to which the nominal GDP as published by the GBS refers. Sources: SDMO, CBvS, WGFP

20 The following table sets forth debt service of Suriname’s Government external debt service for the periods indicated.

Government External Debt Service For the Year Ended December 31, 2015 2016 2017 2018 2019 (US$ millions) Principal payments on external debt 34.9 179.3 53.7 139.8 81.5 Interest payments on external debt 17.5 24.0 77.5 87.6 88.6 Fees, interest escrows and other costs 1.2 23.1 3.5 3.7 5.8 Total debt service on external debt 53.7 226.4 134.7 231.0 175.8 ______Source: SDMO

The following table sets forth scheduled debt service of the Surinamese Government’s total pro forma external debt as of the dates indicated.

Government External Debt Principal and Interest Repayment Schedule As of December 31, 2020 2021 2022 2023 2024 2025 2026 (US$ millions) Principal 127.8 140.6 133.0 134.0 246.0 157.8 681.5 Interest and other costs 103.9 106.2 105.4 105.3 105.0 100.0 84.9 Total debt service on external debt 231.8 246.8 238.4 239.3 351.0 257.9 766.4 ______Source: SDMO

Domestic Debt

Suriname’s public domestic debt amounted to approximately US$979.6 million as of September 30, 2019. Of this amount, about 41% was owed to the CBvS in the form of a long-term loan. The following table sets forth the composition of Government domestic debt as of the dates indicated.

Government Domestic Debt(1) As of December 31, 2015 2016 2017 2018 2019 (US$ millions) CBvS 618.4 602.7 314.0 311.6 483.8 Overdraft 0.0 0.0 0.0 0.0 0.0 Advances and consolidated debt 618.4 602.7 314.0 311.6 483.8 Treasury bills 187.7 213.6 255.7 341.6 268.0 Supplier’s loans 58.9 65.3 52.0 57.6 64.4 Other domestic debt 24.4 58.3 98.8 64.9 175.6 Undisbursed amounts and non-called guarantees(2) 56.1 n/a n/a n/a n/a Total 945.5 939.9 720.4 775.7 991.8 ______(1) Data calculated in accordance with the national definitions established by the State Debt Act. In accordance with the State Debt Act, exchange rates used to convert foreign currency debt to SRD and vice versa are exchange rates quoted by the CBvS as at the last banking day of the calendar year to which the nominal GDP as published by the GBS refers. (2) Beginning in 2016, undisbursed amounts and non-called guarantees ceased to be part of the definition of central government debt and are no longer recorded as debt, consistent with international best practices. Source: SDMO

21 Risk Factors Relating to Suriname

The Republic has an increasing level of public indebtedness and could have difficulty servicing its debt.

Suriname’s debt has increased significantly over the past several years. Suriname historically maintained a low debt-to-GDP ratio, but the 2015 commodity price shock led to a sharp increase in the debt-to-GDP ratio from 29% in 2014 to 64.6% in 2016 to 68.5% in 2018. Large fiscal deficits, currency depreciation, and weak economic growth have been the main causes of the increase in debt. As of December 31, 2019, Suriname had an estimated ratio of total debt to GDP of 75.0%. The debt-to-GDP ratio is calculated using an estimated 2019 GDP, which may differ from estimates produced by rating agencies or multilateral financial institutions. Official GDP data will not be available before August 2020.

Suriname may not be able to meet future debt service obligations out of current revenue and it may have to rely in part on additional foreign currency financing from the domestic and international capital markets (or multilateral or bilateral sources) in order to do so. In the future, Suriname may not be able or willing to access such markets or sources of funding, and the CBvS may not be willing or able to sell foreign exchange to the Government to meet future debt service obligations. As a result, Suriname’s ability to service its public debt, including the 2026 Notes and 2023 Notes, may be adversely affected.

Suriname’s economy and fiscal balance are dependent on production of, and global demand and prices for, the main commodities it produces.

The Surinamese economy is highly concentrated in the extractive industries and their related manufacturing activities. These sectors play a key role in driving economic growth, employment and fiscal revenue.

Gold and oil are the principal commodities produced in Suriname. Alumina production had historically been an important contributor to the Surinamese economy until production in Suriname ceased in 2015.

The mining and quarrying sector, which principally includes oil and mineral ore extraction operations, and the manufacturing sector, which principally includes oil refining and mineral ore milling and processing, together accounted for 25.8% of Suriname’s GDP in 2018. Exports of gold and petroleum products collectively accounted for approximately 87.9% and 86.3% of total exports in 2017 and 2018, respectively. In addition, traditionally a significant amount of fiscal revenue in Suriname has been derived from companies in the gold and oil sectors. The percentage of fiscal revenue attributable to mining revenue (which includes revenue from oil and mineral extraction operations) reached a low point of 14.5% in 2015. This percentage increased to 35.7% in 2018 before decreasing to an estimated 29.2% in 2019, a decline mainly due to Staatsolie’s partial nonpayment of dividends.

The prices of gold and oil have fluctuated significantly in the international commodities markets, causing fluctuations in Suriname’s fiscal revenues and exports. In particular, Suriname was materially adversely affected by the sharp decline from 2013-2016 in international prices for the main commodities it produces, gold, and oil, and the closure of the country’s remaining alumina production facility in 2015. These events led to sharp decreases in export revenue and fiscal revenue, declining international reserves and substantial external current account and fiscal deficits in 2014-2018. Given Suriname’s high commodity dependence (oil and gold), the ongoing commodity price shock which has occurred concurrently with the COVID-19 pandemic has had negative effects on growth and has further weakened the fiscal and external positions.

While the Republic has been taking steps to diversify its economy and reduce the dependence of its fiscal revenues on commodity production and prices, there can be no assurance that these efforts will be successful. Significant or continuous reductions in Suriname’s production of, and/or fluctuations in the international prices of, these commodities could have a material adverse effect on Suriname’s ability to make payments on its outstanding public debt, including the 2026 Notes and 2023 Notes.

22 Future political support for current economic policies, including reform of the electricity sector and servicing of Suriname’s outstanding public debt, cannot be assured.

In response to the sharp decline in international commodity prices which began in 2013 and had a material adverse effect Suriname’s economy and public finances, the Government began implementing a major economic reform program in August 2015. Elements of the program included the phased elimination of electricity subsidies and gradual increases in electricity tariffs, which has resulted in significant increases in electricity costs for the Surinamese population and businesses. The elimination of subsidies is part of a broader reform of the electricity sector that has been planned by the Government.

National Assembly elections were held on May 25, 2020. The opposition parties collectively won 35 seats of the 51 seats in the National Assembly. As a result, opposition parties will form a new government coalition. The change in the Government as a result of the recent election could lead to a shift in Government economic policies that could affect the ability of the Government to implement its planned reform of the electricity sector or the proportion of Suriname’s budget devoted to public debt payments or could have other adverse effects on Suriname’s ability to meet its outstanding public debt obligations in the future, including its obligations under the 2026 Notes and 2023 Notes.

The ability of Suriname to sustain or increase its present levels of gold production is dependent in part on the success of gold mining projects in the country, which are subject to numerous known and unknown risks.

The ability of the Republic to sustain or increase its present levels of gold production is dependent in part on the success of gold mining projects in the country. Risks and unknown factors inherent in all gold mining projects include, but are not limited to, the accuracy of reserve estimates, metallurgical recoveries, capital and operating costs of such projects, and the future prices of the relevant minerals. The capital expenditure and time required to develop new mines or other projects are considerable and changes in costs or construction schedules can affect project profitability. Actual costs and economic returns may differ materially from the Government’s estimates and those of the companies operating in Suriname. The continuity of production and the ability to physically export gold may be affected by the current COVID-19 pandemic and the closure of all borders and commercial air transport. In addition, the success of the gold mining projects in Suriname are dependent on the commitment of the international gold mining companies that operate the projects, and the Republic’s maintaining positive relationships with such companies.

Suriname is dependent on obtaining future debt financing, which may not be available on favorable terms or at all.

Suriname is dependent on obtaining future debt financing for the continuing implementation of its economic reform program and for budget financing. There can be no assurance that the Republic will be able to obtain other financing in the future on acceptable terms or secure financing to cover its net foreign financing needs. A failure of Suriname to receive financing in the future could have a material adverse effect on Suriname’s economy and fiscal position and its ability to meet its obligations under the 2026 Notes and 2023 Notes.

Political and social developments in Suriname could have a material adverse effect on the Surinamese economy and on Suriname’s ability to make payments on its outstanding public debt, including the 2026 Notes and 2023 Notes.

Suriname experienced social and political turmoil in the 1980s and 1990s such as conflicts among ethnic minorities, guerrilla groups in the countryside, coup d’états and military dictatorships, all of which undermined Suriname’s policy predictability and economic stability.

On November 29, 2019, the Court of Justice of Suriname returned a verdict of guilty against President Bouterse in the December Murders trial and awarded a sentence of 20 years in prison. On January 22, 2020, President Bouterse lodged an appeal of the conviction. President Bouterse continued to hold the position of President while the appeal has been pending.

23 National Assembly elections were held on May 25, 2020. Opposition parties collectively won 35 of the 51 seats in the National Assembly. The National Democratic Party (“NDP”), headed by President Bouterse, won 16 of the 51 seats in the National Assembly. As a result, there will be a replacement of Suriname’s governing coalition in the coming months.

Any adverse developments in the political and social environment in Suriname could have a destabilizing effect on the Government, which could adversely affect the Surinamese economy and Suriname’s ability to make payments on its outstanding public debt, including the 2026 Notes and 2023 Notes.

Failure to adequately address actual and perceived risks of corruption may adversely affect Suriname’s economy and ability to attract foreign direct investment.

Although Suriname has implemented and is pursuing major initiatives to prevent and fight corruption, corruption remains a significant issue in Suriname as it is in many other emerging markets. Suriname is ranked 70 out of 180 countries in Transparency International’s 2019 Corruption Perceptions Index. Since 2015, Suriname has implemented various measures to prevent and fight corruption. Additionally, in May 2017 Suriname became a member of the Extractive Industries Transparency Initiative (“EITI”) to help improve governance of the mineral extraction and oil and gas sectors. Despite various reform efforts, corruption continues to be a serious problem impacting Suriname. In particular, in January 2020, following a routine information request by the Government, it was alleged that CBvS Governor Robert van Trikt misappropriated CBvS budgetary funds. Investigations are ongoing as to the validity of the allegations and scope of the alleged activities. In February 2020, Mr. van Trikt was removed from his position as Governor of the CBvS and later arrested, and a criminal investigation by the police and an internal investigation by both a special team appointed by the attorney general of Suriname and the chairman of the board of supervisors of the CBvS are in progress. Failure to address corruption issues, continued corruption in the public sector and any future allegations of or perceived risk of corruption in Suriname could have an adverse effect on the Surinamese economy and may have a negative effect on Suriname’s ability to attract foreign investment.

Outbreaks of COVID-19 or other contagious diseases may adversely affect the Surinamese economy.

The outbreak of COVID-19 (which first impacted Suriname in early 2020), coupled with the measures implemented by government authorities to contain it, such as extended holidays, travel restrictions, complete border closures, discontinuance of all commercial and private air transport, and other measures to discourage or prohibit the movement of people, could have a materially adverse effect on the level of economic activity in and the economic conditions of Suriname. At present, it is difficult to ascertain how long the outbreak of COVID-19 may last and the full impact that the pandemic may have on economic activity globally or in Suriname specifically. If the COVID-19 outbreak continues for a prolonged period, the economic condition of Suriname would worsen and the Surinamese economy may experience a significant decline in economic activity.

The occurrence of any pandemic or epidemic is beyond the control of Suriname and there is no assurance that the current COVID-19 pandemic will not continue or worsen or that the outbreak of other pandemics or epidemics will not occur. Any continuing or worsening of the COVID-19 pandemic or any future outbreaks of other contagious diseases could adversely affect the Surinamese economy.

The Surinamese dollar is subject to volatility and depreciation.

The depreciation of the Surinamese dollar against the U.S. dollar or other foreign currencies may adversely affect the financial condition of Suriname, as well as Suriname’s ability to service its debt denominated in currencies other than the Surinamese dollar, including amounts due under the 2026 Notes and 2023 Notes. The SRD was de facto pegged to the U.S. dollar until March 2016, when the CBvS shifted to a flexible exchange rate regime. Suriname’s mineral exports are denominated in U.S. dollars in international markets. Nevertheless, any significant change in the value of the SRD or the currency of Suriname’s major trading partners, against the U.S. dollar or other major currencies could adversely affect the Surinamese economy and its financial conditions. The SRD depreciated from SRD 3.35 per U.S. dollar in October 2015 to SRD 7.42 per U.S. dollar on December 31, 2016 and further to SRD 7.52 per U.S. dollar on December 31, 2018. As of the end of May 2020, the cash spot SRD:US$ rate was SRD 15.00 per U.S. dollar. The value of the SRD is impacted by several factors that are outside of the Republic’s control.

24 While the foreign exchange regime in Suriname has fundamentally changed since 2015, external economic or political factors, or domestic political, economic, or confidence-affecting events could trigger exchange rate volatility or depreciation events. There is a risk that the depreciation of the SRD could result in larger fiscal imbalances or outflows of capital from Suriname, each of which could have a material adverse effect on Suriname’s economy.

Inflation volatility could have a material adverse effect on the Republic’s economic prospects.

The Republic has experienced volatile inflation rates in recent years as a result of exchange rate changes and, to a certain extent, fiscal policy measures. An increase in inflation contributes to significant uncertainty regarding future economic growth. In November 2015, monthly inflation increased sharply to 15.6% due to the Government’s phased elimination of electricity subsidies. Almost all of this inflation increase reflected a one-time 110% increase in “housing and utilities” prices associated with the increase in electricity tariffs in October 2015. This spike in inflation accounted for a large percentage of the 25.1% inflation rate for 2015. After reaching a high of 79.2% in October 2016, 12-month inflation decreased to 9.2% in December 2017, 5.5% in December 2018 and 4.4% in December 2019. According to the IMF’s World Economic Outlook (April 2020), Suriname is projected to have CPI inflation (year-on-year increase of annual average prices) of 27.9% for 2020 and 22.7% for 2021. To avoid a repetition of the inflation shock that followed the depreciation of the SRD and other relative price adjustments, the CBvS has tightly controlled domestic liquidity conditions to ensure stability in the foreign exchange market. However, there can be no assurance that inflation rates will return to historical levels and remain stable in the future or that the Republic will implement measures to contain inflation. Significant or volatile inflation could have a material adverse effect on the Republic’s economic growth and, as a result, its ability to service its debt obligations, including the 2026 Notes and 2023 Notes.

Certain economic risks are inherent in any investment in an emerging market country such as Suriname.

Investing in an emerging market country such as Suriname carries economic risks. These risks include many different factors that may affect Suriname’s economic results, including the following:

 changes in economic or tax policies in Suriname;

 the ability of Suriname to implement key economic reforms;

 general economic and business conditions in Suriname and the global economy;

 the imposition of trade barriers by Suriname’s trade partners;

 the impact of hostilities or political unrest in other countries that may affect international trade, commodity prices and the global economy;

 the decisions of international financial institutions regarding the terms of their financial assistance to Suriname;

 the imposition of wage, price or exchange controls by the Government;

 instances of corruption by government officials and misuse of public funds than in more mature markets;

 interest rates in the United States and financial markets outside Suriname; and

 exchange rate volatility.

Any of these factors, as well as volatility in the markets for securities similar to the 2026 Notes and 2023 Notes, may adversely affect the liquidity of, and trading markets for, the 2026 Notes and 2023 Notes.

25 Suriname is vulnerable to climatic or geological disasters.

Suriname is vulnerable to climatic disasters, especially flooding due to excess rainfall or rising sea levels. Suriname is also vulnerable to the effects of global climate change. The occurrence of such a disaster could have a material adverse effect on Suriname’s economy and its ability to make payments on the 2026 Notes and 2023 Notes.

Any revision to the Republic’s official financial or economic data resulting from any subsequent review of such data by the CBvS or other Government entities could result in material changes to such data.

Certain financial and economic information presented herein may be subject to revision and may subsequently be materially adjusted or revised to reflect new or more accurate data as a result of the periodic review of the Republic’s official financial and economic statistics. In particular, National Assembly elections were held on May 25, 2020. Opposition parties collectively won 35 seats of the 51 seats in the National Assembly. It is expected that opposition parties will form a new government coalition and that a representative from among the opposition parties will be elected to succeed President Desi Bouterse. As a result of changes in the government that will follow from the National Assembly elections, government information and plans may change. In addition, there can be no assurance that the incoming government will continue to provide the same level of continued information and under the same standards as provided by the current Government.

Any revisions to the Republic’s official financial or economic data resulting from any subsequent review of such data by the CBvS or other Government entities or for other reasons could be material. Such revisions could reveal that the Republic’s economic and financial conditions as of any particular date are materially different from those described herein. The Republic cannot provide any assurances that material changes will not be made, that the information provided herein is complete or that any such adjustments or revisions will not have a material adverse effect on the interests of its creditors, including holders of the 2026 Notes and 2023 Notes. The Republic is not obligated to distribute any such revised data and information to any investor.

The ratings of Suriname may be lowered or withdrawn.

On January 22, 2020, Fitch downgraded the Republic’s sovereign credit ratings from “B minus” to “CCC.” On April 1, 2020, S&P Global Ratings downgraded the Republic’s foreign currency long-term credit rating from "B" to "CCC+" with a negative outlook. On April 14, 2020, Moody's downgraded the long-term issuer and senior unsecured ratings of the Republic to B3 from B2 and changed the outlook from stable to negative. These ratings address the perceived creditworthiness of Suriname and the likelihood of timely payment of Suriname’s long-term government debt. Ratings are not a recommendation to purchase, hold or sell securities and may be changed, suspended or withdrawn at any time. Each rating should be evaluated independently of the others. Detailed explanations of the ratings may be obtained from the respective rating agencies. The Republic’s current ratings and the ratings outlook currently assigned to the Republic are dependent upon economic conditions and other factors affecting credit risk that are outside the control of the Republic. Any adverse change in the Republic’s credit ratings could adversely affect the trading price for the 2026 Notes and 2023 Notes.

26