The share of non-performing loans at commercial banks in Suriname declined significantly in 2025. The so-called NPL ratio fell from 5.3 percent in 2024 to 2.8 percent in 2025. This brought the share of problem loans below the internal maximum standard of 5 percent. This is evident from the October 2026 Financial Stability Report by the Centrale Bank van Suriname (CBvS) (Central Bank of Suriname).
Non-performing loans are loans for which the borrower does not meet payment obligations in accordance with the agreed terms. A high percentage of such loans may pose risks to banks, as there is a possibility that lent funds will not be fully repaid.
Volume of problem loans declined by 26.2 percent
According to the Central Bank, the quality of the loan portfolio improved significantly in 2025. The total volume of non-performing loans declined by 26.2 percent to SRD 1.2 billion. At the same time, total gross lending increased by 37.2 percent.
The combination of fewer problem loans and more loans issued caused the share of non-performing loans within the total loan portfolio to decline sharply. In addition, the CBvS reports that uncollectible loans within the loan portfolio fell by 40.7 percent.
Problems mainly in several economic sectors
Despite the overall improvement, certain economic sectors remain relatively strongly represented among problem loans. According to the report, non-performing loans are mainly found in the agriculture, livestock farming, construction and installation, trade, and housing sectors.
There are also differences between the currencies in which loans are issued. For loans in Surinamese dollars, the NPL ratio was 7.5 percent. For loans in US dollars, this was 2.8 percent, while the percentage for euro loans stood at 8.6 percent. This shows that the development of problem loans does not proceed equally across all parts of the loan portfolio.
Some banks still above internal standard
The Central Bank stresses that the improvement in the average NPL ratio does not mean that all banks individually meet the internal standard. At several commercial banks, the share of non-performing loans in 2025 was still above the applied threshold of 5 percent. The CBvS has therefore continued monitoring the measures taken by these institutions.
According to the report, banks with elevated NPL levels must submit progress reports each quarter. This allows the supervisor to assess whether the measures taken contribute to an improvement in loan quality.
Credit risk remains an important point of attention
Although the banking sector showed a clear improvement in 2025, credit risk remains one of the main risks to the financial system, according to the Central Bank. Loans account for a large share of commercial banks’ assets.
The CBvS considers the decline in non-performing loans a positive development for the sector’s financial resilience, but continues to urge active supervision and timely management of credit risks.
Source: Centrale Bank van Suriname, Financial Stability Report, October 2026, page 15.
