IDB approves $30 million to support vulnerable populations in Suriname

• The loan will benefit 130,548 people through periodic transfers
• The operation seeks to reinforce the efficiency and transparency of Suriname's social protection network

Suriname's difficult macroeconomic conditions, along with the pandemic, has a severe impact on the country's population, especially the most vulnerable, An IDB survey in April 2020 indicated that 47,6% of families in Suriname have lost income due to business closures and job losses. The proportion of families whose income was below the minimum wage increased from 23.2% in January 2020 to 31.7% in April.

The crisis also evidences the need to improve the conditions of the Ministry of Social Affairs and Public Housing (MOSAPH) to administer social protection programs with efficiency and transparency. The loan seeks to optimize the management of cash transfer programs, including establishing an evaluation unit at MOSAPH. Likewise, it will allow the training of personnel and the provision of computer equipment and internet services.

Cash transfers are the most effective tool to redistribute income and sustain consumption in the region. They have proven to be effective in dealing with transient shocks suffered by vulnerable populations.

Among the beneficiaries are 5,361 households living in poverty, 45,507 households enrolled in child allowance, 11,781 people with disabilities, and 67,808 people enrolled in old-age assistance. 68.2% of the registered beneficiaries are women. In addition, the loan will benefit 27,000 coastal area households by expanding the money card of the bank account system.

Supporting vulnerable populations is one of the IDB Group's objectives in its Vision 2025, a roadmap to achieve inclusive growth in Latin America and the Caribbean.

The IDB loan of $30 million has a disbursement period of 4 years, a grace period of 5 and a half years, and an interest rate based in LIBOR.