Caribbean News Now!

By Ivan Cairo
Caribbean News Now contributor

PARAMARIBO, Suriname -- Suriname's Hakrinbank has disclosed that it is seeking a "strategic partnership" with the Trinidad-based Republic Bank Ltd. Sources here indicate that the Surinamese government is planning to sell part of its 51 percent stake in Hakrinbank to Republic Bank.

However, legislators have warned against this move, citing the international financial crisis which apparently didn't have any noticeable negative effects on Suriname´s financial sector.

Hakrinbank made the announcement in its bi-annual report, noting that its operational costs and investments expenditures are increasing significantly. According to the bank, competition in the local financial sector has increased, as in the international financial markets. Hakrinbank also said that its policies are aiming at improving the quality of the bank's service and increasing efficiency and profitability of its operations.

Against this background "after consultations between our bank and the Surinamese government in its capacity as majority stakeholder", the board of directors said it started negotiations with Republic Bank. According to the bank, the talks "are progressing smoothly".

Deputy Speaker of the House and a former member of the board of directors of Hakrinbank, Ruth Wijdenbosch has raised concerns over the government's plans to sell its shares in the bank. She warned that, taking into account the current situation in the international financial markets, it would not be wise to sell assets to a foreign bank.

Wijdenbosch called on the government to inform parliament and the public regarding its policy to privatize Hakrinbank further.

"The legislative should have a say in this. These are assets of the Surinamese people," the opposition MP said in an invited comment.

If the acquisition talks are successful, Republic Bank will be the second regional bank to enter the Surinamese market. The former Royal Bank of Trinidad and Tobago was the first Trinidadian and regional bank to enter the Surinamese financial market in the late 90s in a takeover of the ABN-Amro Bank in Suriname.

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