Suriname skidded into default after the government ran out of time to convince bondholders to yet again push back bond payments, Bloomberg News reported. Fitch Ratings downgraded the nation to RD from C and declared default on the $675 million of dollar bonds due in 2023 and 2026 after the country failed to make an already delayed debt payment on March 31. That’s Suriname’s third default event of the Covid era per Fitch’s criteria.
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Suriname
Suriname’s government has asked creditors for a payment deferral on its two bonds, which total $675 million in size, in what analysts said could be a prelude to a broader debt restructuring, Reuters reported. The government of the South American nation announced the launch of a consent solicitation for its two bonds, due in 2023 and 2026, in a statement on Saturday. The consent solicitation expires on Nov. 23. The move had been expected after Suriname said late last month that it wanted to make use of a 30-day grace period on its dollar-bond coupon payments due on Oct.
Suriname said on Thursday it wanted to make use of a 30-day grace period on its dollar-bond coupon payments coming due on Oct. 26 to engage with creditors to tackle its debt sustainability issues, Reuters reported. Indicating that it might not pay the coupon due on Monday, the government said in a statement it had invited all its commercial creditors to an investor presentation on Oct. 30. “Public debt has risen to historical levels and borrowing continued even as severe macroeconomic and financial imbalances were building up,” the government of the South American nation said.