During the discussion of the draft new rules for the Central Banking System (Central Banking Act 2022), VHP Assemblyman Rajindre Debie discussed several issues from the Explanatory Memorandum (MvT)
He quoted the European Championships, which states, among other things, that In 2016 and 2020, the IMF exposed Suriname’s central bank for ‘Safeguard Assessments’. Based on the results of the IMF’s safeguard assessment reports, it was decided to replace the Banking Act of 1956 and make necessary amendments to the new law, mainly with regard to the Bank’s mandate, independence and management. The law includes price stability or monetary stability as the main purpose.
Debie noted that these are necessary adjustments in terms of mandate, independence and governance of the bank according to the IMF security assessment. He stressed that it is about several and very special issues to renew the banking law in the area and not just Safeguard assessment 2020 by the IMF.
“Because before that period, terrible things happened in the parent bank. Today we know that the former governor of the central bank is in jail and sentenced to 8 years in prison. That a director of the bank has also been sentenced to 4 years in prison. That the other monetary authority, the Minister of Finance, has in absentia been sentenced to 12 years in prison and on the run in relation to the events in the parent bank, ”said Debie.
He also mentioned that several people from the financial sector have been convicted in relation to the events in the parent bank. The Assembly member called for the disappearance of the treasury belonging to the citizens of the country and “the use of bank resources for their own benefit, up to and including gigantic money financing, which has led to the misery that the Surinamese community is in today…” He also mentioned the waste of state resources and said that it is therefore necessary to change the banking law. “Therefore, the reasoning in the EM for amending the Banking Act, in particular the assessment of the IMF Safeguard, is not sufficient to be the only justification for amending the Banking Act.” In this context, Debie pointed to “the systematic looting of government finances through the central bank and the cases he cited.”
According to the VHP politician, EM is an essential part of the law. A law cannot be applied correctly without a justification. Debie considers that the explanation and the explanation of Articles 9 and 10 of the draft are very brief and pointed out the need to amend the Banking Act of 1956 on this paragraph.
“These 2 Articles (9 and 10), together with Article 28, which deals with the management of the parent bank, form the core of the changes.”
Debie cited the 2007/08 international credit crunch, which he believes has shown that financial stability is also crucial to maintaining monetary stability and promoting sustainable economic growth.
Against this background, the bank also strives for financial stability. “Thus, the Bank aims to guarantee a financial system that is resistant to shocks that could disrupt the core functions of this resistant system and thus its contribution to the growth of the Surinamese economy.”
According to Debie, more has happened here than just the international credit crisis in 2007/2008, which necessitated a renewal of the banking law to guarantee a robust financial system.
Debie: “What needs to be added to the rationale is that the shocks to the financial system are also the result of thieves, swindlers, scammers, currency fraudsters from inside and outside the central bank having seized the parent bank in the period before 25 May. , 2020, of which only a small proportion are still in prison and others on the run. ”
The Assembly member noted that these things should not be repeated.
“It is not Chan who has created poverty in the country, but these scammers,” Debie stressed.
He also took Article 10 para. d. on:
“The exercise of micro-prudential supervision of the banking and credit sector, the pension and insurance sectors, the exchange of money – which, according to Debie, means the Cambio – and the transfer of financial resources from and to the foreign and capital market, one and the other in accordance with the applicable law. “
He would like to hear from the Minister what legal provisions are being discussed or referred to here. He also noted that he was unable to find out that the exchange offices or cambios were included in the Banking and Credit System Supervision Act of 1968, as last amended in 1986. “They are not a bank, nor are they credit institutions, “Debie concluded.