February 12, 1999
EBS (SURINAME POWER COMPANY) FORCED TO RATION POWER
The Suriname Power Company EBS has been forced to ration power in the districts.
This is due to a lack of funds for fuel. From last Tuesday the inhabitants
of Nickerie, Coronie, Albina, Moengo and Commewijne have had to make do
without electricity during the hours of 7pm to 10am. Paramaribo also faces
this problem. EBS spokesman Kenneth Profijt has reported that the further
escalation of the X-change rates will also influence the price for electricity
which will soon result in higher tariffs. The EBS now faces a decision
where either the government will have to subsidize the costs or the people
will be forced to pay it. Profijt stated that the EBS and the government
have been having discussions over this problem since January 2nd. The solution
now lies in the hands of the government. The longer it takes the government
to come to a decission the sooner the possibility that Paramaribo too will
have to go without electricity for most of the day. Profijt has stated
that it was a shame that the districts always had to bear the brunt when
problems arose in the electrical sector. The problem at hand is reported
to be acute and very little can be done about it. Yesterday the EBS management
and the Ministry of Finance held a meeting to see if they could come up
with a solution. Assembly member Harold Bent reported that Coronie is also
cut off from water when there is no electricity which makes it even harder
for the inhabitants of that district. As the problems at the power company
continues to increase so also does the requirement for energy. At present
the machinery at the EBS when revised will only bring in around 56 megawatts
where as the required amount is already 85 megawatts.
FREE ENTERPRISE VICTIM OF ESCALATION DOLLAR
The recent rise in the x-change rate for the dollar that has also brought
with it a wave of price increases in almost every area has placed the business
sector in such a difficult position that survival is almost impossible.
The exploitation costs to upkeep the businesses have all gone sky high.
After the last wage increase of 40 percent that the government has given
its employees it is expected that the business sector will soon have to
follow suit. At present the business sector shows a decline in income due
to a decrease in buying power. It is therefore safe to say that many businesses
will not be able to grant their employees any inreases in the near future
even though they may want to. Many businesses will have to close down.
Maybe it is still not late to survive this economical crisis. It will need
the support of the people including the government in a nationwide effort
to save the ecomomy from further decline. Even the good intentions of the
government to enforce rules and regulations to try and bring the economy
back on its feet have so far had little or no effect. The main reason being
the lack of national foreign capital. The AWS suggests that the export
sector be completely stabilized and the income from this sector be available
to the export businesses so that these firms could continue their business
activities. This will eventually release the pressure on the exchange market.
US DOLLAR SOARS TOWARDS THE 1000 FIGURE
The X-change rate for the US dollar is heading for the 1000 figure. The
Dutch guilder is almost 500. Shops and store have already begun to price
their articles at a rate of 1000. In Nickerie yesterday the US dollar was
sold for 1000 and the Dutch for 500. The expectations are that in June
the price for the dollar will be around the 1500. The escalation in the
rates is according to some money vendors the result of the rush on the
x-change market. Reports state that many are withdrawing their money from
the banks and converting this into dollars. Many money vendors are worried
about the present situation on the X-change market because they stand to
lose if the dollar should suddenly take a dive. These are the risks involved.
-End-