2008 ANNUAL REPORT - Hakrinbank

2008 ANNUAL REPORT

MISSION
Hakrinbank is a dynamic, innovative bank that provides its clients
with a comprehensive range of high quality financial services.
Our highly skilled employees collaborate together as a team
to deliver customized services for optimal client satisfaction.
VISION
Our vision is to be Suriname’s preferred bank
by providing high quality financial services.
CORE VALUES
Hakrinbank has defined four core values that provide guidance in
realising its strategic objectives, the activities that support these
and the translation to its organisational structure, systems and
values, norms and behaviours within the organisation, namely:
- Reliability
- Service and customer focus
- Teamwork
- Quality
These core values are anchored in Hakrinbank’s organisational
structure and culture and form the guiding principles for all of its
activities. They clearly delineate what the bank stands for and form
a benchmark for all that the bank does.

THEME 2008
SMALL AND
MEDIUM ENTERPRISES
In this annual report we focus on our country’s small and medium enterprise
(SME) sector by highlighting a number of our SME clients. From an
economic perspective the SME is of great importance to Suriname taking
into account that by far the most enterprises belong to this segment.As a
source of employment and productivity, the SME is of special importance
and it is here where most of the technical and organizational innovations
also take place.The potential of the SME sector is often underrated but
fortunately this perception is changing.The Hakrinbank is a committed
partner of the SME sector and has supported companies throughout their
evolution: from startup to growth. And this will not change in the future!

NEO
TROPICAL
INSECTS
‘A hobby
that
became
much
more’
This is how Ewout
Eriks describes the
company that he
founded with his wife
Amira Mendienta.
As the only butterfly
cultivator in the
Caribbean, Neo
Tropical Insects has
grown to become a
beautiful and unique
Surinamese company
that exports butterflies
and butterfly
poppies to Europe
and North America.
The company also
offers tours to
tourists and other
visitors.

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CONTENTS
Mission, Vision, Core Values 3
Organisation Chart 4
Division of Functions 5
Five years of consolidated statements 6
Report of the Supervisory Board 8
Report of the Executive Board
Introduction 12
Economic developments in 2008
Business of the bank
Nationale Trust- en Financierings Maatschappij N.V.
Financial developments of the bank
Auditor’s Report
Financial Statements 2008 (as of 31 December 2008)
Consolidated balance before earnings distribution
Consolidated balance after earnings distribution
Consolidated income statement
Consolidated cash flow statement
Company balance before earnings distribution
Company balance after earnings distribution
Consolidated income statement
Notes to the financial statements
Additional Information
Resumes and details regarding ancillary positions of members
of the Supervisory Board and Executive Board of Hakrinbank
Addresses
Suriname: key macroeconomic indicators

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ORGANISATION CHART AS OF 31-12-2008
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Deputy Officer
Operations
Human Resources &
General Affairs
Information &
Communication
Technology
Internal Audit
Risk
Management
Insurance
Domestic
Credits
Treasury &
Securities
Credit
Administration
Cash
Nationale Trust- &
Financierings
Mij. N.V.
Administration &
Management
Information
(Financial
Controlling)
Foreign Transfers
Affiliates
(Operations)
Affiliates (Credits)
Administration &
Management
Information
(Accounting)
Compliance & Legal
Maintenance
& Technical
Support
Marketing & Public
Relations

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ORGANISATION CHART AS OF 31-12-2008
SUPERVISORY BOARD
Mr. A.K.R. Shyamnarain
Drs. H.B. Abrahams
Ir. R.A. Mac Donald
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-Sjin
- President
- Vice President
EXECUTIVE BOARD
Drs. J.D. Bousaid
Mr. M.M Tjon A Ten
Drs. G.M. Raghoenathsingh MBA
- Chief Executive Officer
- Chief Operating Officer
- Chief Financial Officer
DEPUTY OFFICER
H.S.K. Liu Hung Chung
- Operations
Mr. M.M. Tjon A Ten
Human Resources &
General Affairs
Mr. M. Naarendorp, Head
Drs. I. Lo Fo Sang
Insurance
R. Tjon A Kon, Head
Credit Administration
Drs. I. Loenersloot, Head
Compliance & Legal
Mr. M. Schaap
Maintenance & Technical
Support
R. Tjokro, Head
Foreign Transfers
L. Karg, Interim Head
Information & Communication
Technolog y
R. Tjong Akiet, Head
Ing. R. Mahabier
A. Semoedi
Domestic
M.Tjon, Head
Cash
M. van ‘t Kruys, B.Ec., Head
Affiliates
Branchmanagers
- Tourtonne
Drs. V. Ramtahalsing
- Nieuwe Haven
Drs. N. Elshot-Chelius
- Latour
R. Wimpel
Drs. A. Lau
- Flora
Drs. R. Mohamatsaid
Drs. J.D. Bousaid
Credits
Drs. S. Jadoenathmisier, Coördinator
Account Managers:
C. Halfhide-Chou
Drs. S. Kisoensing-Jhauw
Drs. T. Gonesh
Ir.P.Quintius
E. Frangie M.Sc.
R. Soedamah, B.Ec.
Nationale Trust- &
Financierings Mij. N.V.
H. Vijzelman, Head
Drs. R. Sitaram, Deputy Head
G. Jong M.Sc.
Internal Audit
B. Jewbali, Head
Drs. R. van Trikt
Marketing & Public Relations
Drs. N. Elliot M.Sc.
Affiliates
Branchmanagers
- Nickerie
R. Mangala, Head
A. Anandbahadoer, Deputy Head
- Tamanredjo
S. Resomardono
Drs. G. M. Raghoenathsingh MBA
Treasury & Securities
Drs. P. Tjon Kiem Sang, Head
Drs. R. Amirkhan
Administration & Management
R. Liesdek, Accounting
Drs. R. Sheorajpanday, Fin. controlling
Risk Management
R. Vanenburg B.Ec.

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FIVE YEARS OF KEY CONSOLIDATED FIGURES
(in thousands of SRD)
2008 2007 2006 2005 2004
Balance sheet
Cash and cash equivalents 151,702.4 120,230.2 104,159.4 97,240.7 104,589.0
Due from Clients 544,400.8 431,991.8 306,449.0 229,730.0 161,942.5
Other assets 276,508.7 243,530.7 195,854.6 144,708.6 133,074.3
Total assets 972,611.9 795,752.7 606,463.0 471,679.3 399,605.8
Savings 435,833.9 328,758.9 238,981.7 185,265.1 121,691.3
Other funds 482,307.0 423,688.4 334,243.6 265,183.5 262,371.4
Shareholders’ equity 54,471.0 43,305.4 33,237.7 21,230.7 15,543.1
Total Liabilities 972,611.9 795,752.7 606,463.0 471,679.3 399,605.8
Income Statement
Operating income 63,255.0 55,123.8 49,236.5 36,659.5 27,500.6
Operating expenses 34,841.5 29,983.5 27,848.8 21,690.5 17,405.2
Provision for credit risks 2,107.2 1,242.6 1,439.3 1,725.9 1,515.9
Earnings before tax 26,306.3 23,897.7 19,948.4 13,243.1 8,579.5
Taxes 9,470.3 8,603.2 7,181.4 4,767.5 3,088.5
Net Income 16,836.0 15,294.5 12,767.0 8,475.6 5,491.0
Cash Dividend 5,588.4 5,122.7 4,657.0 2,731.8 1,862.8
Ratios (in %)
Efficiency ratio 55 54 56 59 63
Return on average equity 34.4 40.0 46.9 46.1 39.9
Return on average assets 1.90 2.18 2.37 1.95 1.69
Capital ratio 5.60 5.44 5.48 4.50 3.89
BIS ratio 11.49 10.56 11.31 10.01 10.19
Stock information *)
Number of outstanding shares 465,696 465,696 465,696 465,696 465,696
Net earnings per share 36.15 32.84 27.41 18.20 11.79
Dividend per share 12.00 11.00 10.00 6.07 4.00
Dividend (% of par) 8,000.00 7,333.33 6,666.67 3,910.67 2,666.68
Payout ratio (%) 33.19 33.49 36.48 32.23 33.92
Book value equity 116.97 92.99 71.37 45.59 33.38
Market price per share 174.00 150.00 136.00 124.00 106.00
Market capitalisation (x SRD 1,000) 81,031 69,854 63,335 57,746 49,364
Number of employees 262 252 254 247 238
Number of branches 7 7 7 7 7
*) x SRD 1. The amounts have been adjusted for the purposes of comparison and are based on a par value of SRD 0.15 per share.

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YOUR
SOLUTIONS
“Let your challenges be
our solutions.”
Ruben Kort and Raoul Brahim offer various tailor-made
ICT solutions.Among other services their company offers its
clients strategic advice and programs to streamline their
business processes in the area of ICT.

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REPORT OF THE SUPERVISORY BOARD
To the shareholders
In general
It is our pleasure to present our activities for the book
year 2008, in which the activities of the Audit
Committee and the Remuneration and Nomination
Committee will also be discussed. We have also
included our recommendation with regards to the
financial statements for the book year and the
proposed distribution of earnings.
Activities of the Supervisory Board
The Supervisory Board held eleven ordinary
meetings and fifteen extraordinary meetings during
2008. Ordinary meetings are held monthly with the
Executive Board, while extraordinary meetings
depend on the topics to be discussed and are normally
attended only by members of the Supervisory
Board. Our supervision focused primarily on the
company’s results and strategy, and included regular
discussions of results achieved to date as presented by
the Executive Board, and approval of the 2009 Policy
Memorandum, together with the accompanying
Operational and Investment Budget for 2009. Other
agenda items included corporate governance, risk
management and a number of other items. Some of
these are discussed in greater detail below.
Corporate Governance
The company continuously strives to inform its shareholders
and other stakeholders on relevant developments
regarding its activities. Publication in August
2008 of the midyear figures as audited by an external
accountant, and the timely distribution to shareholders
of notes of the annual General Shareholders’
Meeting, are perfectly in line with this objective.
The corporate governance code of the company is
intended to act as an instrument for responsible
management. Transparency, integrity and trust play
an important part in achieving this. It is therefore
necessary to regularly evaluate this code and modify
accordingly in the case of changes to the bank’s
operating environment. In this respect the Board has
initiated an evaluation programme in which the
current corporate governance code will also be
subject to an audit by an external expert. In doing so
the Board wishes to gain insight into the extent by
which rules and procedures, as laid out in the bank’s
Corporate Governance Codes, are still in tandem with
actual international best practices - and hence indicate
where modifications may be necessary. It is our intention
to have such audits of the current corporate
governance code carried out on a regular basis.
In so far it has not been discussed elsewhere in this
report, the activities of the Supervisory Board are in
compliance with the policies as laid out in the
Corporate Governance Code of the company.
Activities relating to the Executive Board
With the formal appointment of drs. G.M. Raghoenathsingh
MBA as Financial Director (Chief Financial
Officer) on 1 July 2008, the Executive Board has now
become complete. The Supervisory Board wishes
Mr Raghoenathsingh the best of luck in carrying out
his tasks and reiterates its full support in his execution
of the Executive Board’s strategies.
The Supervisory Board has again closely followed the
international economic developments so as to, when
necessary, be able to discuss with the Executive Board
strategies to prevent or limit negative effects on the
bank’s operations. The Supervisory Board has in
collaboration with the Executive Board decided to
intensify discussions that are related to these developments.
Activities of the Audit Committee
The Audit Committee has focussed in this book year
on financial developments within the bank, as laid out
in the Operational and Investment Budget 2008, the
monthly realized figures as received by the Executive
Board, the reports from the Administration &
Management Information (AMI) department, and
the internal and external accountant. The Committee
has made suggestions in the areas of cost containment
and efficiency improvements that have been adopted
by a multi-disciplinary working group within the
bank. In light of the optimisation of the risk management
of that department, the Committee has, in
collaboration with an external accountant, carefully
scrutinized policies and procedures of the department
of Foreign Transfers. This has resulted in
proposals aimed at controlling specific risks. The
Committee has already reported its activities and
findings during the ordinary meetings of the
Supervisory Board.

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Activities of the Remuneration and Nomination
Committee
The Remuneration and Nomination Committee
focused in 2008 on the incorporation of the newly
appointed CFO, drs. G.M. Raghoenathsingh MBA, in
the compensation structure of the Executive Board.
Furthermore the Committee prepared proposals for
the Board concerning the adjustment and modification
of salaries and other provisions for the
Executive Board in 2008. Against this backdrop the
Committee, with the support of an actuarial firm, also
focussed its attention on the preparation of a pension
fund for the Executive Board and will be tasked with
implementing pension regulations for the Board. In
addition the committee has continued with the
further preparation of a performance management
system for the Executive Board The importance of a
well functioning system still requires the necessary
preparation and as a result the Committee has not yet
been able to make a final proposal to the Supervisory
Board. The Committee has always reported on its
activities in the meetings of the Supervisory Board.
Independence and composition of the
Supervisory Board
The Supervisory Board believes that all of its
members comply with the requirements for
independence as referred to in the Hakrinbank N.V.
corporate governance code. Information on the
individual Board members and their ancillary
positions can be found elsewhere in this report.
Drs. J.J.F. Tjang-A-Sjin steps down at his own request
as member. The Supervisory Board thanks him for his
contributions to the Board during his time as
member; he has proposed to the General Shareholders’
Meeting the appointment of drs.A.K. Moensi-
Sokowikromo to fill up the vacancy. There were no
further changes in the Supervisory Board during
2008, and the Board continues to have seven members.
Ir. R.A. Mac Donald and Mr. A.K.R. Shyamnarain are
the next supervisory board members scheduled to
resign by rotation. Both have confirmed that they
wish to be considered for reappointment. The
Supervisory Board recommends the appointment of
drs. A.K. Moensi-Sokowikromo and the reappointment
of ir. R.A. Mac Donald and Mr. A.K.R. Shyamnarain.
Financial statements and proposed distribution of
earnings
The Supervisory Board is pleased to present the
bank’s financial statements for the 2008 book year.
ANN BIO CARE SKIN
CLINIC
In a luxurious environment Michelle Bab-
Lo Fo Sang offers her clients high-tech
care in the area of skin improvement and
figure corrections.Ann Bio Skin care
differentiates itself through the use of
modern technology and devices.

| 10 |
These financial statements comprise the company
balance sheet as per 31 December, the company
income statement, the consolidated balance sheet as
per 31 December, the consolidated income statement,
the consolidated cash flow statement and the accompanying
notes. The financial statements have been
audited by external auditors, as required by the bank’s
Articles of Incorporation. This report includes the
auditors’ approval of the financial statements.
The operating result is essentially the outcome of the
realization of the policy objectives defined in the 2008
Policy Memorandum which were implemented by the
Executive Board. This year too, the operating result was
boosted to some degree by the continuing positive
developments in Suriname’s macro-economic
environment.
The environment in 2008 has not been left unmarked
from the less than conducive international developments
that originally manifested itself as an international
credit crisis, but later grew out to become a
full fledged international economic crisis that finds its
effects in the real economy. The ramifications of the
international economic crisis are also noticeable in
Suriname, despite the continued forecast of real
positive growth. The sharp decline in the international
prices of amongst others crude oil and
aluminium has had a negative effect on state income,
the balance of payments and the economic growth.
The Supervisory Board is confident that through the
adoption of sound policies the government and other
parties in the socioeconomic arena will be able to
contain the negative effects of the international
economic crisis.
Earnings before tax amounted to SRD 26.31 million,
with a net earnings after tax of SRD 16.84 million. We
propose distributing SRD 5.59 million of this for
dividend pay-out to the shareholders and transferring
SRD 11.25 million to retained earnings. This means a
dividend of SRD 12 per share with SRD 0.15 par
value. An amount of SRD 4.00 per share was
previously distributed as an interim dividend in
August 2008, which means a final dividend of
SRD 8.00 per share with SRD 0.15 par value. The
dividend to be distributed accounts for 33.2%
of the net earnings and corresponds to a dividend
percentage of 8,000%.
We recommend that you, our shareholders, adopt
these financial statements and thus ratify the
Executive Board’s management and the Supervisory
Board’s supervision of the bank in the reporting year.
We also recommend that you approve the proposed
distribution of the earnings for the year.
Our gratitude for the good results
The Supervisory Board would like to express its
gratitude for the way in which the Executive Board
represented the company’s interests during the
reporting year and specifically its efforts and the
strategic choices that produced the good operating
results for the year. We would also like to thank the
management and other employees for the way in
which they have individually contributed to a successful
year for the bank and wish to express our
recognition of the vital role that they have played in
achieving the objectives set. We would also like to
thank our clients and all the other parties who have
placed their trust and confidence in Hakrinbank N.V.
throughout the year and provided such a strong
foundation for a mutually beneficial relationship. Last
but not least, we would like to thank you, our shareholders,
for your support of our work.
This inspires us as an organisation to continue to
strive for excellence in all that we do.
Paramaribo, 14 April 2009
Supervisory Board
Mr. A.K.R. Shyamnarain - Chairman
Drs. H.B. Abrahams - Deputy Chairman
G. Lie Sem-Nawikromo
Ir. R.A. Mac Donald
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-Sjin

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ZUS & ZO
Fusion:
everything
under
the sun.
Zus & Zo is exploited by Brian van ‘t Kruys and Daphne Bruyne.
Next to being a bistro with international meals, a souvenir shop,
a ticketing office for tours to the interior and a guesthouse, they
also frequently organize events such as exhibitions, film and
discussion evenings, and jam sessions.

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REPORT OF THE EXECUTIVE BOARD
To our shareholders
We herewith present you with our annual report for
the book year 2008. It is with great pleasure that
we can report that our bank has again been able to
realize satisfactory results. These are the result of the
strong performance of the Surinamese economy and
successful execution of the bank’s strategy despite a
backdrop of increased turbulence on the international
financial and other markets, and competition within
the Surinamese financial sector.
Macroeconomic indicators showed a positive picture
in 2008 that was duly translated into increased
consumer and manufacturer confidence. In real terms
the economy grew by nearly 7% and again there was a
surplus in the government’s budget and balance of
payments. Our bank has been able to capitalize on
these positive economic developments.
The most important objectives were to achieve
sustainable growth, increase earnings capacity,
optimize the composition of the balance sheet,
improve efficiency and strengthen risk management as
well as customer relations management. In addition
our aim was to increase employee satisfaction and our
social corporate citizenship. Tangible results were
realized in a number of areas. Despite the fact that
satisfactory results were booked, the financial
objectives were not entirely realized as a result of oneoff
setbacks.
Total consolidated assets increased by 22.2% to
SRD 972.6 million, in line with our projections. The
market share of the Hakrinbank as measured by its
total assets grew by 1.5 percentage points to nearly
25%. Our most important assets, lending to corporates
and consumers increased by 26% to SRD 544.4 million,
somewhat higher than budgeted. The quality of the
credit portfolio stayed at its previous level; the nonperforming
ratio was a mere 1.72%.
Income before tax grew by 10.1% to SRD 26.3 million;
this is lower than projected. This was the result of an
unforeseen depreciation in value of our international
investment portfolio and the occurrence of other oneoff
costs. Of the income after tax of SRD 16.8 million,
SRD 5.6 million will be distributed as dividend to our
shareholders: a pay-out ratio of 33.2%.
The performance ratios of the bank declined slightly
however they remained at a satisfactory level. The
return on assets was 1.9% and the return on average
equity 34.4%. The efficiency ratio decreased by
1 percentage point to 55%. Our objective remains to
improve the performance ratios of the bank through
growth and efficiency improvements.
In June of 2008 we reopened our renovated and
expanded branch at the Nieuwe Havencomplex. It is a
modern “Banking Centre”, where clients can expect
an expedited and efficient handling of their banking
needs. With this investment of nearly USD 0.5 million
we aim to capitalize on the current renovation and
expansion of the Nieuwe Haven in Paramaribo that is
expected to lead to an increase in business activity.
We plan to also open up a new branch mid 2009 in the
new departure and arrivals hall of the J.A. Pengel
international airport. This branch is also intended to
cater to our clients in the wider surrounding area of
the airport.
In the last quarter of the reporting year we introduced
our Hakrinbank MasterCard credit cards. With this
product our clients can carry out transactions in all
countries where MasterCard is accepted.
Our subsidiary, the Nationale Trust- en Financierings
Maatschappij N.V., has booked satisfactory results.All
production objectives were comfortably reached. The
balance grew by 33% to SRD 146 million, especially
thanks to the increase in lending. Revenues increased
by 14%, however income decreased by 2% because of
an increase in costs.
The share price of “Hakrinbank N.V.” rose on the
Surinamese Stock Exchange by 16% to SRD 174 at
2008 year end. Dividend in the book year 2008 was
SRD 12 per share of par value SRD 0.15 of which
SRD 4 was already distributed in September 2008 as
an interim dividend. Expressed as a percentage of the
par value of one share (SRD 0.15) the dividend comes
down to 8,000%. This represents an attractive return

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for our shareholders and a favourable price/earnings
ratio.
In the remainder of this annual report we will present
in more detail the economic developments of 2008
that are relevant to our bank’s performance. This
report is more detailed than is customary in the
banking sector because we decided that the limited
availability of, and access to, up-to-date statistical
information for large parts of the society justified
devoting extra attention to these aspects in our
annual report. We subsequently discuss in this report
various developments within Hakrinbank and
Nationale Trust- en Financierings Maatschappij, as
well as the bank’s financial development and the
proposed distribution of earnings.
From left to right:
drs. G. Raghoenathsingh, Chief Financial Officer,
mr. M. Tjon A Ten, Chief Operating Officer,
drs. J. Bousaid, Chief Executive Officer en
H. Liu Hung Chung, Deputy Officer Operations.

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HEDI INFRA N.V. Economic Developments in 2008
Hedi Infra N.V. constructs electric and
water distribution systems.
In the daily operations the company’s
belief in working with environmentallyfriendly,
sustainable and innovative materials
is clearly manifested.
2008 will be recognized in the history books as the
year in which the international financial crisis erupted
in all its fury. It marked the beginning of a worldwide
economic recession that had all the ingredients to
make its effects deep and fundamentally game
changing. Ever more often parallels are drawn
between this recession and the Great Depression of
the 30’s of the last century.
The year 2008 shall also be etched in our memory as
the year in which democrat Barack Obama was
elected by a large majority as the first black president
of the United Stated of America. He is faced with an
enormous task of getting the derailed American
economy back on track and repairing the tarnished
image of the United States internationally.
The direct effects of the international financial crisis
on our country are as of yet limited. The global
economic crisis that followed will however leave its
marks on the Surinamese economy especially during
2009 and 2010. Our country has however in the past
years been able to build financial and other buffers
that should enable it to weather the crisis relatively
unscathed.
The macroeconomic performance of Suriname
remained in 2008 – as in previous years - robust, for
which compliments were given by the Article IV
Consultation Mission of the International Monetary
Fund (IMF) and the rating agency “Standard &
Poor’s”.
According to estimates by the IMF, real economic
growth was approximately 6.8%, somewhat higher
than in 2007. This growth was the result of an
increase in demand on the world markets for our
most important export goods during most of the year.
Consumer spending also rose, as well as the volume of
investments.
A surplus was realized on the current account of the
balance of payments that added to the increase in the
monetary reserve. The public finances closed (on a
cash basis) with a surplus, while the national debt
showed only a slight increase.
On a less positive note, the abovementioned developments
also led to the acceleration of the inflation rate
as a result of the increased price of oil and staple

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foods, the appreciation of the Euro, and the stagnant
development of the country’s productivity. Since
October inflation has showed a decrease mainly due
to dropping import prices as a result of the worldwide
economic recession and the appreciation of the
US dollar - to which our currency is pegged - vis-à-vis
the Euro.
In this chapter we aim to discuss more in detail the
economic developments that have taken place in our
country during the 2008 book year.
Government Finances
As can be seen from the table below, the actual figures
of government finances were significantly better on a
cash basis than initially budgeted by the National
Assembly in 2008.
Actual current expenditure was as follows (in millions
of SRD):
Realised Budgeted Realised
2007 2008 2008
Wages and salaries 692.4 754.8 758.5
Goods and services 411.0 435.2 435.8
Subsidies/
Government grants 458.9 397.3 487.7
Interest on state debt 94.5 74.8 60.8
Total current
expenditure 1,656.8 1,662.1 1,742.8
Budget for 2008 financial year (in millions of SRD)
Description Expenditures Income Difference As % of GDP
Current account 1,662.1 1,720.5 58.4 0.8
Capital account 551.8 0.0 -551.8 -7.4
Total current and capital account 2,213.9 1,720.5 -493.4 -6.6
* Source: Financial Memorandum 2008 and 2009
Thanks primarily to higher than forecast direct and
indirect tax revenues, together with lower than
budgeted capital expenditures, the country recorded a
surplus.
Income on the current account totalled SRD 2,111.1
million, which was SRD 345.6 million, or 20%, higher
than budgeted.
Realised Budgeted Realised
2007 2008 2008
Direct taxes 737,6 672,2 835,5
Indirect taxes 731,5 672,0 878,7
Non-tax
revenues 359,1 421,3 396,9
Total income 1,828,2 1,765,5 2,111,1
Expenditures on the current account totalled
SRD 1,742.8 million, which was SRD 80.7 million, or
5%, above budgetary forecasts.
Wages and salaries in 2008 rose by around 8%, in line
with budgetary forecasts. The increase in current
public expenditures was furthermore the result of a
rise in subsidies and government grants by SRD 487.7
million. These expenditures formed more than a
quarter of all current account expenditures, which
can be regarded as high.
The surplus on the current account totalled
SRD 368.3 million or SRD 264.9 million higher than
budgeted. Because of the limited execution capacity
available for the implementation of projects, only a
limited number of investment projects were realized.
As a result capital expenditures were SRD 278.4 million,
significantly lower than budgeted.
The developments presented above resulted in a total
budget surplus of SRD 145.9 million, or approximately
2% of the Gross Domestic Product (GDP),
instead of the budgeted deficit of SRD 493.4 million.
Despite the positive figures realised above, government
finances remained structurally weak. No significant
measures were taken to improve this situation

| 16 |
Another challenge to the government finances is
posed by the possible negative ramifications of the
worldwide recession. Constant monitoring and a
proactive stance are therefore essential to balance the
government’s financial affairs as well as the economy.
National Debt
Domestic as well as internationally placed government
debt has increased in 2008. It should be noted
that the definition of state debt used in the State Debt
Act differs from the definition widely used internationally.
According to the Surinamese definition, state
debt includes undrawn amounts under committed
loan facilities and also State guarantees that have not
been called, whereas the international markets do not
normally include these items.
This in turn leads to an overestimation of the real
debt. The extent and nature of Suriname’s domestic
and foreign state debt are shown below.
The domestic debt increased by SRD 48.2 million or
8.3% to SRD 628 million. By entering into a number
of loan agreements resulting from the financing of
large infrastructural projects, future debt repayments
have increased in SRD as well as in foreign currencies.
This explains the strong increase of the line item
“State guarantees and committed loans”. The internationally
placed debt increased by USD 16.7 million or
5.6% to USD 315.4 million. This rise is predominantly
the result of arrears on the bilateral loans from
Brazil and the United States.
The Surinamese government is in negotiations with
these befriended nations in order to find a solution to
this debt situation. Despite the increase of the national
debt, Suriname’s debt ratio (debt as a percentage of
GDP) of 25% is still on the low side. This ratio has
consistently shown a downward trend in recent years.
Year end
Lender Type 2008*) 2007 2006
Domestic debt by lender type (x SRD 1000)
Debt to Central Bank of Suriname 397,272 302,598 326,007
Debt to Banks 85,649 151,204 206,395
Debt to Private Clients 145,112 126,007 118,438
Total domestic debt 628,033 579,809 650,840
State guarantees 25,628 21,931 19,547
Committed Loans 260,860 31,037 50,646
Total domestic debt including state guarantees 914,521 632,778 721,034
and committed loans
Foreign debt by lender type (x USD 1000)
Multilateral lenders 72,936 70,437 63,083
Bilateral lenders 242,456 228,303 322,950
Commercial lenders 0 0 5,077
Total foreign debt 315,392 298,740 391,110
State Guarantees 18,789 19,873 0
Committed Loans 309,800 120,807 107,104
Total foreign debt including State Guarantees
and committed Loans 643,981 439,420 498,213
*) preliminary figures
Source: Government Debt Management Office

| 17 |
Monetary Developments
The Central Bank of Suriname’s monetary policy
remained unchanged in 2008. The mandatory cash
reserve requirements for SRD as well as foreign
currencies remained unchanged. On January 2 2008
the interest rate on Treasury Bills of the Republic of
Suriname were further decreased from 8% to 7.5%
per annum while the Central Bank discount rate fell
from 10% to 9.5% per annum.
The expanded monetary aggregate, M2, an important
indicator for monetary policy, rose in the 2008 book
year by SRD 209.5 million or 15.4% to SRD 1,569.8
million. This increase, that was less than in 2007, was
predominantly due to an increase in bank lending to
the private sector and less by liquidity inflows from
abroad. It is also noteworthy to mention that the fiscal
behaviour of the government resulted in a substantial
liquidity destruction of SRD 228.7 million.
Liquidity growth has led to a small increase in the
liquidity ratio (domestic monetary aggregate (M2) as
% of GDP), to an estimated 21%. This variable
currently hovers under the long-term average
of25%.It should,however,be noted that payments
and bank balances in foreign currencies do not
form part of M2. Aforementioned balances rose by
SRD 138.9 million (as converted) or 8.4% to
SRD 1,796 million – this is 114.4% of M2. The room
for liquidity as a consequence needs to be closely
monitored in order to reign in inflation.
Despite the fact that cash reserve requirements
remain unchanged, interest rates have shown a
further downward trend. This is in part due to the
large liquid position of the banking system and the
intensified competition. The average interest rate
spreads of commercial banks declined as a result by 1
percentage point to 5.6%. In 2005 this was still at
9.6%. With the USD loans interest rate margins fell by
0.1 percentage points to 6.5% and with Euro loans
margins fell by 0.3 percentage points.
Foreign Exchange
The official foreign exchange rate with the US dollar,
our most important foreign trade currency, has seen
negligible fluctuations in 2008. The following chart
shows the monthly movements in the buy and sell
quotes for the US dollar in 2008.
The following table shows the changes in the money supply in the Surinamese economy
(M2, in millions of SRD):
2008*) 2007*) 2006
1. Liquidity created for the state -228.7 -114.3 -31.7
2. Lending to the private sector 244.5 154.1 58.8
3. Other liquidity created 16.6 -228.5 -89.2
Total domestic liquidity created 32.4 -188.7 -62.1
4. Liquidity from abroad 177.1 466.8 263.9
Total 1 to 4 209.5 278.1 201.8
Liquidity ratio (M2 : Nominal GNP market prices) 20.9 1) 20.4 18.9
*) Preliminary figures
1) Own estimates
Source: Central Bank of Suriname

| 18 |
USD:SRD buy and sell quotes 2008
2.82
2.80
2.78
2.76
2.74
2.72
2.70
jan
feb
mar
apr
may
june
july
aug
sept
oct
nov
dec
Buy
2.758
2.758
2.757
2.757
2.758
2.758
2.758
2.761
2.754
2.753
2.758
2.756
Sell
2.800
2.800
2.800
2.800
2.800
2.800
2.800
2.800
2.801
2.800
2.800
2.800
The situation in 2008 with respect to the foreign
exchange market is almost the same as it was in 2007.
At that time there was upward pressure on the
exchange rate for the USD. This pressure was
apparently the result of a shortage in supply that
extended to the months in which there was normally
an increased supply (June till August and December).
The increased demand can be in part allocated to
speculators and those looking for arbitrage opportunities
in the foreign exchange market. Non banking
institutes offered foreign currency at a number of
basis points above the maximum that the Central
Bank of Suriname has laid down. The commercial
banks, obliged to comply to these ceilings, lost
competitive terrain as a result. The Central Bank of
Suriname has by means of foreign currency interventions
tried to relieve the upward pressure on the USD,
however these have had insufficient effect.
The EUR:USD exchange rate displayed strong
volatility in 2008, in contrast to the upward trend
shown in 2007. This volatility stimulated trading in
these currencies in order to earnings from volatility
swings. Given that the SRD is linked to the USD and
consequently floats against the Euro, exchange rates
movements between the SRD and the Euro are
directly linked to the EUR:USD movements on the
international foreign exchange markets. In June the
free market Euro exchange rate reached an all time
high of approximately SRD 4.50. In October this rate
dropped to a low of SRD 3.63 before regaining some
of its value to end up at SRD 4.00 year end. The Euro
sell rate of the Central Bank dropped from SRD 4.13
as of year end 2007 to SRD 3.81 at the end of 2008.
Balance of Payments
An average increase of prices of our most important
exports namely crude oil, gold and to a lesser extent
alumina resulted in a rise in export value by 28.2% to
USD 1,689.2 million. Thanks to the increased trade
and production and the increase in consumer
demand, imports also increased by USD 412.5 million
or 36.7% to USD 1,537.6 million. Because of imports
outweighing our exports, the surplus on the balance
of payments accounts decreased by USD 40 million to
USD 151.6 million.
There was a larger deficit on the services account as a
result of increased expenditures. The primary balance
again showed a surplus that was in part due to the
increased interest rate income from bank investments
in the international money and capital markets, and
the decreased interest rate payments to non citizens.
Due to the abovementioned developments the surplus
on the current account decreased by USD 88.6 million
to USD 124.6 million. The movements on the
various sub-accounts that make up the balance of

| 19 |
Balance of payments on cash basis
(in millions of US dollars)
2008*) 2007*) 2006
Goods 151.6 192.1 232.3
Services -132.5 -62.0 -34.9
Primary Incomes 18.1 5.7 -51.6
Income Transfers 87.4 77.4 35.9
Balance current accounts 124.6 213.2 181.7
Capital account -33.2 -186.4 -159.6
Items still to be classified 1) -47.0 131.3 66.9
Balance non-monetary 44.4 158.1 89.0
sectors
*) preliminary figures
1) Movements in residents’ foreign currency accounts.
Source: Central Bank of Suriname
payments resulted in the balance of the non-monetary
sectors diminishing to USD 44.4 million, substantially
lower than in 2007.
The worldwide economic recession has since the
fourth quarter of 2008 led to a substantial drop in
world commodity prices especially of crude oil and
alumina. The overall revenues from these important
commodities shall as a result drop and it is to be
expected that this will also affect our balance of payments
for 2009.
Monetary reserve
Due to the surplus in the balance of payments, net
foreign assets rose in 2008 by USD 65.6 million or
15% to USD 501.5 million. This growth is however
less than in 2007 due to the smaller surplus. This
reserve translates into almost 4 months import
coverage of goods and services and lies somewhat
above the internationally accepted standard of at least
3 months.
Development of the monetary reserve
(in millions of USD)
Year-end
Description 2008*) 2007*) 2006
1. Monetary authorities
a. Gold reserves 42.3 34.8 23.0
b. IMF special drawing rights 0.6 0.9 1.3
c. IMF reserve position 9.5 9.7 9.2
d. Foreign exchange receivables 624.7 396.0 237.8
e. Foreign exchange owed to residents -200.9 -40.1 -28.8
f. Secured foreign exchange obligations -0.6 -0.6 -0.6
Total 1 475.6 400.7 241.9
2. Currency banks
a. Foreign exchange receivables 379.8 409.0 303.5
b. Foreign exchange owed to residents -319.2 -339.9 -253.7
c. Foreign exchange owed to non-residents -28.4 -27.7 -24.3
Total 2 32.2 41.4 25.5
Total 1 +2 507.8 442.1 267.4
3. Amounts owed in SRD to non-residents -6.3 -6.2 -6.2
Net foreign exchange assets 501.5 435.9 261.2
*) preliminary figures
Source: Central Bank of Suriname

| 20 |
The expected deterioration of the balance of payments
in 2009 shall also have its effect on the monetary
reserve. A continued build up of this reserve is in our
view necessary in order to protect the value of the
Surinamese dollar. In addition, in view of the high
dollarization level of bank balances, we deem it
beneficial that the Central Bank builds up an extra
reserve that it can utilize if the Bank needs to act as a
lender of last resort in case of (temporary) bank
liquidity shortfalls.
The Surinamese Stock Exchange
The following table provides an overview of trade on the Surinamese Stock Exchange in 2008
Stock Par value Trading Volume Closing share price
per share # shares SRD dec. dec.
2007 2008
Assuria 0.10 2,536 44,601 15.50 19.05
C.I.C. 0.01 3,167 24,202 6.80 8.00
DSB Bank 0.10 1,229 22,383 47.25 20.00
Elgawa 0.01 28 224 6.00 8.00
Hakrinbank 0.15 302 49,902 150.00 174.00
Margarine & Vettenfabriek 0.01 3,082 16,797 5.20 5.45
Self Reliance 0.01 270 2,514 8.60 9.10
Surinaamse Brouwerij 5.00 - - 98.00 125.00
Torarica 0.10 600 29,950 39.20 54.00
Varossieau 0.10 - - 16.00 16.60
VSH-United 0.01 50 1,100 21.50 22.00
Total shares 11,264 191,673
- Exchange Index as of 31 December 2008: 2,323,0
- Source: Securities Trading Association of Suriname
On the Surinamese Stock Exchange the effective turnover
dropped by 90% to SRD 192,000 in comparison
with the year before. The number of traded shares
also declined. In the case of 2 stocks there were no
transactions at all. The most actively traded shares
were those of the Hakrinbank, Assuria and Torarica,
which accounted for 26.0%, 23.3% and 15.6% respectively
of the total trading volume in SRD.
The number of listings remained unchanged. The
most active brokers were the DSB bank and
Hakrinbank which accounted for 37.7% and 37.5% of
the total trading volume in SRD terms.
The stock index reflecting the developments in
(weighted) market capitalisation of all listed stocks,
rose in 2008 by 553.3 points or 31% to 2,323.0. This
increase lay well above the inflation rate, which means
that the average investment in shares generated an
attractive return in real terms during the year.
The distribution of stock dividend of 300% in the
book year of 2008 has resulted in a decrease in the
share price for the DSB Bank.
The Banking System in Suriname
In contrast to many banks elsewhere in the world,
Surinamese banks have in 2008 experienced a
favourable development. The relative isolation from
the international banking system has prevented
contagion by risky structured finance products such
as collateralized debt obligations, assets backed
securities and credit default swaps, leaving the
Suriname banking system relatively unscathed. Assets
as well as lending increased substantially and earnings
ability remained in line.

| 21 |
Key figures of the general banking sector in Suriname (in millions of SRD)
Year-end 2008*) 2007*) 2006
Total assets 4,438.9 3,745.7 2,871.0
Funds available for lending and cash/cash equivalents
Funds on current accounts 818.6 696.6 539.7
(Compulsory cash reserve) (227.1) 6) (197.9) 4) (179.4) 2)
591.5 498.7 360.3
Savings 464.1 408.9 311.8
Term deposits 219.8 181.8 126.5
Capital and reserves 233.2 195.2 157.3
Total funds available for lending and cash/cash equivalents 1,508.6 1,284.6 955.9
Lending and investments
in SURINAMESE DOLLARS 1,270.3 5) 953.9 3) 764.2 1)
in US DOLLARS 295.7 223.8 177.4
in EURO 60.0 54.3 44.7
Key ratios
Capital Adequacy ratio I
(capital and reserves as % of total assets) 5.25 5.21 5.48
Capital Adequacy ratio II
(capital and reserves as % of lending) 10.24 11.14 11.30
1. Excluding provision for bad and doubtful debts of SRD 36,1 million *) preliminary figures
2. Excluding cash reserve of SRD 76,8 million for housing loans Source: Central Bank of Suriname
3. Excluding provision for bad and doubtful debts of SRD 42,7 million
4. Excluding cash reserve of SRD 115,9 million for housing loans
5. Excluding provisions for bad and doubtful debts of SRD 46,2 million
Excluding cash reserve of SRD 146,3 million for housing loans
Total consolidated assets rose by 18.5% to SRD 4,438.9
million while total lending rose by more than 31%.
Funds available for lending rose less rapidly than the
growth in SRD lending, in turn leading to less room
for liquidity. The Capital Adequacy ratio I remained
relatively unchanged. The Capital Adequacy ratio II
according to the BIS definition decreased to more
than 10% and remained above the accepted norm
of 8%.
Previous annual reports discussed the increasing
US dollarization of bank balance sheets and the
implications of this in detail. The Central Bank of
Suriname and the commercial banks’ executive
boards have pursued policies aimed at reversing this
trend. The Central Bank has laid down a high foreign
exchange cash reserve obligation of 33.3% on
commercial banks and is considering increasing this
reserve requirement. In addition it aims to – as
previously indicated – further increase its monetary
reserves such that it can play a role in case a bank
would suddenly require liquidity support.
Commercial banks give interest rates incentives for
SRD credits and have escape clauses built in to their
foreign exchange credit arrangements, such that these
can be converted to local currency loans if necessary.
As can be seen from the following diagram, these
polices have led to some success.

| 22 |
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| 23 |
US dollarisation in 1996 – 2008 as a percentage of total loans and deposits
The share of total deposits denominated in foreign
currencies decreased in 2008 by 1.9 percentage points
to 54.4%. The extent to which lending was in dollars
decreased substantially by 3.8 percentage points to
45.6%. Our expectation is that this will further
decrease in 2009 due to the limited interest rate
differential between the SRD- and foreign exchange
loans. The goal is to bring back these rates substantially,
in part in order to decrease foreign exchange risk.
Deteriorating economic growth and the changing
macro economic environment shall influence the
banking system in 2009. Lower growth percentages
will need to be taken into account. The financial
position and the earnings capacity will however
remain at a satisfactory level.
Inflation
Inflation in Suriname is measured on the basis of the
development of the consumer price index (an average
change in the price of a fixed, representative basket of
240 consumer goods). According to preliminary
figures compiled by the General Office of Statistics
consumer prices rose on average by 14.7% in 2008, in
comparison with 6.4% in 2007. Inflation according to
the year-end method rose by much less, namely from
8.3% to 9.4%.
The acceleration of the inflation rate is predominantly
due to price increases in crude oil, food staples and
the appreciation of the Euro. Inflation is higher in
Suriname than for our relevant foreign trading partners
which could lead to pressure on exchange rates.
Year Average Year End
inflation (%) inflation (%)
2005 9.5 15.8
2006 11.3 4.7
2007 6.4 8.3
2008 1) 14.7 9.4
1) preliminary figures
As a result of the worldwide recession, import prices
have been dropping since the third quarter and its
effect on price indices has been visible in Suriname
since October 2007. It is expected that this trend will
continue in 2009 and inflation will decrease. At
the end of February 2009 year-on-year inflation
(February 2009 - February 2008) already declined to
6%. As a result a moderate stance can be expected of
the labour unions during the 2009 wage negotiations
in order to limit local cost increases, maintain
employment positions and uphold the competitiveness
of the private sector. The employees of Suralco
LLC also deserve an honourable mention due to their
decline of an earlier agreed upon loan increase for
2009. In this way they are contributing to an increased
competitive positioning of their company that is
currently struggling as a result of the international
recession.

| 24 |
Developments in important production sectors
Driven by high average mineral prices on the world
markets and increased consumer and production
confidence, the real economy grew in 2008 according
to estimates by almost 7%. In particular the sector
mining, building and construction and trade
contributed to this growth.
Especially the prices of crude oil and gold rose
significantly. The agricultural sector also capitalized
on the positive situation on the world markets.
Investments in the hotel and tourism sector remained
high.
In the fourth quarter prices of alumina and crude oil
dropped substantially as a result of the worldwide
recession that will negatively influence economic
growth in 2009 and 2010. It is expected that a slack in
foreign demand may be partly mitigated by the
increased local activity that is related to large government
infrastructure projects.
This will culminate in an expected real GDP growth
in 2009 of approximately 4-5%, still very acceptable
taken the current worldwide situation.
Bauxite Sector
The jointly operating bauxite companies, Suralco and
BHP-Billiton, have operated satisfactorily in 2008,
despite the negative effects of the worldwide crisis in
the last quarter.
In the reporting year alumina production declined by
1.1% to 2,153,968 metric ton. The refinery operated at
98% capacity and export volume rose by 0.7% to
2,176,531 metric tons.
The total export value was USD 715.5 million, an
increase of nearly 2%. The average export price
increased by merely 1.2% to USD 329 per metric ton.
Transfers to Suriname amounted to USD 88.5 million
related to local payments (excluding to Staatsolie
N.V., for delivered oil products).
This amount is 28.4% lower than in 2007. State income
from this sector amounted to USD 44.7 million, a
decrease of 46.3%. The number of employees rose by
0.6% to 1,170 persons. The short term outlook for the
alumina sector is not positive. The negotiations
between the Surinamese government and the domestically
operating alumina companies did not result in
an agreement in 2008 and no agreement could be
established with BHP-Billiton to set up a mine in West
Suriname near the Bakhuysgebergte. As a result this
company has decided to abort operations in
Suriname by the end of 2010 and the country is now
on the lookout for other partners to develop the
bauxite reserves in West Suriname.
Oil Sector
Due to increased production and strong prices, the
State Oil Company booked record revenue and
earnings in 2008. Production of crude oil increased by
0.5 million barrels or 8.5% to more than 5.9 million.
The average daily production from more than 1100
production wells amounted to 16,200 barrels. The
average net selling price of “Saramacca crude oil” was
USD 76.75 per barrel, 36% higher than in 2007.
Over 2008 gross revenue amounted to USD 540 million,
an increase from USD 203 million or 60% versus the
previous year. Earnings before taxes resulted in
USD 388 million, an increase of 152%. Net income
contribution (on a cash basis) to the balance of
payments was USD 269 million and to the State
approximately USD 180 million.
The refinery achieved a good capacity utilisation
and refined 2.54 million barrels of crude oil. The
production is however almost 4% lower than in 2007
because operations at the refinery were temporarily
suspended for maintenance during 4 weeks. Of the
total production, 46% was delivered to Suralco, 10%
as shipping fuel, 39% was exported and 5% was sold
on the domestic market.
Refining capacity is planned to double in a number of
years to 15,000 barrels per day, whilst gasoline,
premium diesel, heating oil, sulphuric acid and
bitumen shall also be produced. A pre-feasibility
study has been concluded in 2008. In addition a start
has been made with the site development and
environmental impact assessment study. The aim is to
round this project off by 2013.
The exploration of the Surinamese off-shore area,
where four foreign oil companies are currently active
in numerous sea blocks, has been continued
intensively. Noteworthy are the drillings by Repsol in
the West Tapir 1 well in Block 30. Despite the fact that
no oil was discovered, the information gathered will
be of importance for further planning of activities. In
the meantime the international tendering process for
blocks 43 and 44 have commenced.
The onshore exploration activities have also been
intensified in 2008 with the aim to guarantee long
term production. In this respect drilling is being

| 25 |
carried out in the Weg naar Zee Oost and the
Commewijne Area, where oil reserves have been discovered.
It is expected that in the first half of 2009
drilling shall commence in the Coesewijne Areas.
A contract has been signed with Geokenetics for the
carrying out of a 2D-seismolgocial survey of 540 km
coastal area. The official commencement took place
on November 13, 2008 in Nickerie and the program is
planned to finalize in June 2009. A budget of USD 25
million has been made available for this project.
Since September 2008 oil prices have considerably
dropped on the international market especially due to
the drop in demand emanating from the worldwide
recession. This will lead to a decrease in revenues and
earnings for the State Oil Company in 2009. The midterm
outlook is however positive for the oil sector.
Gold Sector
The upward trend of gold continued in 2008. For
the first time since the 80’s in the last century the
magical threshold of US dollar 1,000 per troy ounce
(31.1 grams) was broken for a number of days in
mid march 2008. The price peaked at USD 1,033 on
17 March.
The average gold price on the London Metal
Exchange was USD 871.96 per troy ounce in the
reporting year, 25.4% higher than in 2007. This
increase was predominantly caused by the “flight to
quality” due tot the increased economical and political
uncertainties and the limited outlook for the world
economy. Various analysts expect that this upward
trend will continue in 2009, whereby a new high continues
to be a real possibility.
The positive developments in the international
markets had a positive influence on the Surinamese
gold sector. Production as well as returns increased.
The largest gold mining company in Suriname,
IAMGOLD, a listed Canadian company with a market
cap of USD 2 billion, produced approximately
315,000 troy ounce (10,000 kg) in 2008, an increase of
17% versus the previous year. The average selling
price was approximately USD 800 per troy ounce
whilst the cost price was USD 480. The company’s
performance improved in 2008, so that the transfers
to the Surinamese state in taxes on salaries, royalties
and income tax increased to USD 50 million. The
company invested in the book year USD 46 million in
exploration and capacity expansion. The proven
reserves increased by more than 20,000 kg, putting
the life of the mine at an estimated 10 years. The
expectation is that the production will further
increase in 2009.
The largest Surinamese gold mining company,
Sarakreek Resource Corporation that owns a
concession on the Sarakreek to the South of
VanBlommenstein dam, also achieved good operating
results. The company strives towards a larger scale
operation, in all likelihood with a foreign partner.
Surgold, the joint venture between Alcoa N.V. and
Newmont Mining Corporation, has in the meantime
concluded its exploration program in the Nassau
Mountains in East Suriname. Commercially extractable
reserves of 2.2 mln troy ounce have been proven,
although at higher operating costs than IAMGOLD in
Brokopondo.
In the meantime negotiations have commenced
between the Surinamese government and Surgold in
order to arrive at an exploitation agreement. Speed is
of the essence to capitalize on the achieved momentum
in order to come up with the best agreement for
all parties. The signal that will given by such an agreement
shall positively indicate that Suriname is an
upcoming gold mining country.
Agricultural Sector
Rice Sector
The total area of rice fields under cultivation
increased by 3.7% to 43,654 ha. This increase was for
large as well as small paddy producers. In the fall of
2008 volumes sown rose remarkably by approximately
3,850 ha to 23,751 ha, due to favourable market
prices and a strong outlook. Various key figures
showing the developments in the sector over the past
five years can be seen in the following table.
In the reporting year the average production dropped
per hectare by 1.5% to 4,189 metric ton, due in large
part to the less favourable climatic conditions. As a
result of an increase of land under cultivation, the
production increased by 2.2% to 182,877 metric ton.
The export volume of rice increased in 2008 by more
than 1%. Partly as a result of administrative barriers
on the side of the government, exporters were not able
to capitalize more on the favourable conditions that
presented themselves in the market. These barriers
were lifted after a number of months.

| 26 |
Average export prices of cargo as well as white rice
were significantly higher because of developments on
both the supply and demand sides in the world market.
The export values more than doubled. Shipments
to the EU, our most important market, increased by
more than 85% or 29,000 metric ton. Exports to the
Caricom market however dropped by 26% to 20,500
metric ton. Because the EU market predominantly
buys cargo rice, the export of the latter was higher
than white rice. In previous years the reverse was true.
paddy have also shown a downward trend since the
beginning of Q4 as a result of lower diesel and
fertilizer input costs. In order to attain reasonable
returns, productivity improvements across the value
chain are crucial.
The rice sector is still supported by the European
Union and the Cariforum who have made available an
amount for the sector that is well utilized by entrepreneurs
active in it.
Prices of rice have since the second half of 2008
shown a downward trend. The production costs of
2008*) 2007 2006 2005 2004
Under cultivation (hectares) 43,654 42,087 44,232 45,563 49,020
Production of dry paddy (Mt) 182,877 179,012 182,659 163,955 174,490
Average production per hectare (Mt) 4,189 4,253 4,130 3,598 3,560
Export volumes (USD 1,000) 53,091 52,499 41,462 35,877 51,830
Export value (USD 1,000) 32,313 15,415 11,516 8,913 11,891
Exportprijs cargorijst (USD/mton/gemiddeld) 604 255 236 220 190
Exportprijs witte rijst (USD/mton/gemiddeld) 610 325 297 301 268
Source: Ministry of Agriculture, Animal Husbandry and Fisheries
* Preliminary figures
RIJSTPAK N.V.
The core business of Rijstpak N.V is the processing, distribution and
export of rice and rice derivates under the brand name Paloma.The
company was ISO certified in 2008 and exploits 2 state of the art
hulling mills in the Nickerie district.This company is considered to
be one of Suriname’s main rice exporters to Europe.

| 27 |
Banana Industry
The banana industry is important to our country for
a variety of reasons: production and export, as well as
the creation of employment. Employing 2,416 people,
the Stichting Behoud Bananen Sector (SBBS) is, next
to the State, the largest employer.
Production rose in 2008 from 56,246 ton to 65,438
ton, an increase of more than 16% that was entirely
exported to the European Union. The FOB export
value was USD 33.1 million, an increase of USD 13.7
million or 70% in comparison to 2007, in large part as
the result of the increased export volume, better
prices and the average higher exchange rate of the
Euro against the USD.
In our previous annual report we presented the
problem of market entry into the EU by ACP countries
(including Suriname), and this challenge has to
date not been solved. The Latin American countries
demand a substantial decrease in the import tariffs,
which the ACP countries vehemently protest against
this. It doesn’t require much explanation to realise that
due to this situation, the price that SBBS receives for
her products isn’t satisfactory.
The privatization process is struggling because of the
uncertainties surrounding the abovementioned
market entry and pricing issues. Currently talks are
being held with the Belgian company Univeg that
already maintains a management agreement with the
SBBS, with regards to the full acquisition of SBBS.
Economic outlook for 2009
The continuing worldwide economic recession will
undoubtedly have negative ramifications for the
Surinamese economy although its depth and duration
is yet difficult to ascertain. Our expectation is that the
economic performance of our country will decline, but
that with a good approach to the situation any negative
effects can be mitigated in an acceptable manner.
According to the 2009 estimates of the Office of
Planning, the real economy shall decline by approximately
2 percentage points to 4-5%. Diminishing
foreign demand shall only in part be compensated by
increased domestic investment activity as a result of
some large infrastructural and civil engineering
projects. The projects shall in large part be funded
through the use of development funds and concessional
loans. The limited execution capacity however
will still form a bottleneck.
The strong decrease in prices of crude oil and alumina
on the international markets shall also influence the
balance of payments and thus also the development of
the monetary reserve. State income from the mining
sector shall drop, and as a result will put State finances
under pressure. On a positive side-note, the majority
of transfers to the State from the mining companies
(and other companies) for book year 2008 will
actually take place in 2009.
In light of the expected economic developments we
deem it prudent that the government develops a
comprehensive policy approach to mitigate the effects.
In recent years our country has been able to build up
strong financial and other buffers and as such should
be able to survive this crisis relatively unscathed. Most
economists and the IMF expect a gradual rebound of
the worldwide economy starting in 2010.
On a positive note, the emerging downward inflationary
trend that started in October 2008 shall
continue in 2009. This in turn will translate into
positive purchasing power for the public. One requirement
is however that the unions show restraint during
the wage negotiations for 2009.
Another positive development is the increased outsourcing
and offshoring of commercial services,
especially from the Netherlands, to our country. We
define outsourcing as the relocation of certain
business activities of a company to countries with a
better price-quality ratio in order to improve its
competitive positioning. In the reporting year a
number of service companies have outsourced a
modest part of their business to Suriname and more
is to be expected in 2009. The majority of the business
activities are call-centres, back-office processing for
financial institutions, ICT and marketing companies,
administrative and technical service providers and
care providers. The government should stimulate this
development.

| 28 |
MICHI
NATURAL
FOODS
‘A Way
of
Life’
is the English
translation of the
Japanese word
Michi.The
inspiration for
starting this
company is based
on the healthy life
style concept. Michi
Natural Foods
produces milk and
dairy products without
chemical
substances. In the
daily operations
Glenn Chin A
Foeng, General
Manager is
supported by his
family.

| 29 |
Business of the bank
Introduction
Positive results have been booked in book year 2008.
The bank experienced strong growth and returns
have increased. At the same time much energy has
been put into the improvement of the internal control
of the bank’s processes and operations. Management
is based on task-setting budgets, with objectives being
quantified wherever possible. These objectives are
recorded in the annual plan, which is part of the
bank’s strategic plan.
We can report to our satisfaction that the operational
objectives for 2008 were for the most part realized.
2008 is the first year in which we implemented the
strategic planning document 2008 - 2010 that was
developed in 2007 with the support of expert consultants
and active involvement of our entire organisation.
The most important objectives were to achieve
sustainable growth, increase earnings capacity,
optimize the balance sheet composition, improve
efficiency and strengthen risk management as well as
customer relations management. In addition our aim
was to increase employee satisfaction, optimize our
HR policy and further our involvement with the
community of which we form an integral part by
actively sponsoring various projects.
Total consolidated assets rose by 22.2% to SRD 972.6
million, in comparison to 31.2% in 2007. Consolidated
lending grew by 26%, much higher than budgeted.
Dollarization of the credit portfolio dropped by
3 percentage points to 41% due to an active policy to
reverse this trend. The quality of the credit portfolio
stayed on track as indicated by the low nonperforming
ratio of 1.72%. The market share of the
Hakrinbank with respect to lending remained
virtually the same at approximately 24%.
The bank’s assets and liabilities management stayed
on track and as of year end 2008 interest generating
assets accounted for approximately 82% of the total
balance. This has a positive impact on income before
taxes, that increased by 10% to SRD 26.3 million.
One of the bank’s main operational objectives in 2006
was to improve overall productivity by achieving a
better efficiency ratio. This however showed a
deterioration from 54% to 55% as per year end. This
ratio was impacted negatively by increases in staff
expenses, and downward adjustment of the market
value of our international investment portfolio. Our
objective is to still improve the efficiency ratio by
1.5 - 2% points per year.
In June of 2008 we reopened our renovated and
expanded branch at the Nieuwe Havencomplex. It is a
modern “Banking Centre”, where clients can expect
an expedited and efficient handling of their banking
needs. In mid 2009 we will also open up a new branch
in the new departures and arrivals hall of the
J.A. Pengel airport. This branch is also intended to
cater to our clients in the wider vicinity of the airport.
In following we will present the most important
developments in 2008 within our organisation and its
various departments, including our subsidiary the
Nationale Trust- en Financierings Maatschappij N.V.
Corporate Governance
Proper corporate governance is particularly
important for banks, given that they play such a major
role in economic stability and development. Even
more so, banks influence the behaviour of their many
corporate clients in this area and hence their risk
management. Effective governance is a precondition
for maintaining public confidence.
The current worldwide financial crisis and the
diminished trust in financial institutions is in our
view a reflection of a lack of corporate governance
within these organisations. It is therefore even more
important to give priority to sound management.
The Executive Board and Supervisory Board of the
Hakrinbank deem it important that “best practices” in
corporate governance are adhered to within our bank
and a leading example can be given to the rest of the
Surinamese community. As far as we are aware,
Hakrinbank is the first Surinamese-owned company
to have formulated a formal corporate governance
code a number of years ago, and to use it as the basis
for its activities. We are a proponent of a national
corporate code that can act as a guide for ensuring
good governance throughout the country’s business
sector.
This code, which can be found on our website,
contains guidelines for the Executive Board,
Supervisory Board and shareholders. The tasks,
powers and responsibilities of these committees - the

| 30 |
Audit Committee and the Remuneration and
Nomination Committee – have been laid down in
separate sets of regulations.
The Executive Board of the Hakrinbank is tasked
with the management of the bank, ie it assumes
responsibility for the realization of business objectives,
strategy, and resulting performance of the bank.
Decisions by the Executive Board are taken by
consensus. In cases in which this is not possible, the
Chief Executive Officer, the highest ranked officer of
the Executive Board, will make a definitive decision.
He assumes end responsibility for the followed
business strategies to the public at large and to the
Supervisory Board and shareholders in particular.
The Executive Board currently consists of 3 members,
namely a Managing Director or Chief Executive
Officer (CEO), an Operations Director or Chief
Operations Officer (COO) and a Financial Director
or Chief Financial Officer (CFO), who was appointed
to this function on 1 July 2008, after ratification by the
General Shareholders Meeting. The commercial
activities of the bank are momentarily led by the CEO.
It lies in the short term plan of the bank to attract a
Senior commercial officer to take over these responsibilities,
freeing up time for the CEO to concentrate on
refining and leading the strategic management of the
organisation.
The Supervisory Board is tasked with monitoring the
Executive Board’s strategies and the overall activities
of the bank, predominantly with regards to financial
policy, corporate structure, performance of directors
and risk management. The Supervisory Board meets
once a month with the Executive Board or as often as
deemed necessary by the Board. This is done on the
basis of a predetermined agenda compiled by the
Chief Executive Officer and the Chairman.
At the monthly meetings the following agenda points
are discussed:
- Ratification of policy proposals by the Board of
Directors;
- Evaluation (interim) financial reports;
- Discussion reports of Audit Committee and
- Remuneration and Nomination Committee;
- Evaluation of operational results and comparison
to previously stated strategic objectives;
- Evaluation and determination of the (mid) year
results after analysis and advice by Audit
Committee; and
- Periodic evaluation of performance by
management and determination of wage
agreements.
The Supervisory Board operates independently of the
Executive Board and other stakeholders. It convenes
at least once a year without the Executive Board in
order to discuss its own functioning as well as that of
its individual members and draws conclusions that
are linked to them.
Within the Supervisory Board two specialized
committees have been formed: an Audit Committee
and a Remuneration and Nomination Committee,
each consisting of three Supervisory Board members.
The Audit Committee under the guidance of
Drs. H. Abrahams is responsible for the adherence to
timeliness, quality and integrity of the bank’s financial
statements in accordance with laws and regulations,
and the independence and well-functioning of
internal and external accountants of the bank. The
Remuneration and Nomination Committee that is led
by Mr. H. Ramdhani, advises the Supervisory Board
with regards to the (re-)instatement of members of
the Board of Directors, management development,
and the compensation of directors. A report of the
activities of abovementioned committees within the
Supervisory Board can be found at the beginning of
this Annual Report.
In the upcoming years further improvement of
corporate governance will receive priority, also in part
because we believe it has a high correlation with good
operational performance and the creation of
sustainable value for our stakeholders. It lies in our
intention to carry out a corporate governance audit in
2009 with the help of a consulting firm. The aim is to
ascertain the extent in which corporate governance
rules and practices are implemented within our
organisation. We intend to conduct this audit
periodically, for example once every three years, in
order to determine the progress of the corporate
governance implementation.
Performance Indicators and Benchmark Analysis
The most important indicators that we use to measure
and monitor our performance are the returns on
assets (Return on Assets), the quality of our most
important assets namely the credit portfolio (nonperforming
ratio), the returns on our shareholders’
equity (Return on Equity) and our operational
efficiency (Efficiency Ratio).

| 31 |
With the evaluation of our operational performance
we compared the annual development of our own
abovementioned indicators to those of larger banks in
the Caribbean. The benchmark study that was carried
out has resulted in an overall satisfactory result for
2008. In comparison to our peer group our Return on
Assets (RoA) and Efficiency Ratio were average,
whereas our Return on Equity (RoE) and nonperforming
ratio were favourable.
Our peer group consists of NCB Jamaica Ltd.,
Republic Bank Ltd., RBTT Financial Holdings Ltd.,
Scotiabank Trinidad & Tobago Ltd., Barbados
National Bank Inc., Republic Bank (Guyana) Ltd. and
DSB Bank NV.
Return on Assets (RoA)
The RoA declined from 2.18% in 2007 to 1.90% in
2008. This decline is the result of a growth in total
assets of 22.2% whilst the net income increased by
less, namely 10.1%. The slower growth in net income
can be attributed to a markdown of the market value
of our international investment portfolio, in addition
to the declining interest rates on Treasury Bills and
foreign bank deposits. The margins on lending
remain unchanged. The RoA of the peer group varies
between the 1.62% and 3.34%.
Our Assets and Liabilities Management has resulted
in a good composition. The most important drivers in
this are the share of income generating assets to total
assets and the ratio of lending / amounts owed to
clients and institutions. The income generating assets
are Treasury Bills, amounts Due from Credit
Institutions, Due from Clients, and Tradable Securities.
The share of these assets to total assets has declined
somewhat from 83.8% at year end 2007 to 81.9% year
end 2008, in large part due to the increase of Cash and
Cash Equivalents from 13.3% at year end 2007 to
15.5% year end 2008. This in turn was the result of a
growth on the liabilities side of amounts owed to
clients and institutions by 22.7%, that were substantially
above the growth in the national monetary
aggregate (M2).
The loans / deposits ratio increased from 62.4% per
end of year 2007 to 64.2% at the end of year 2008. This
increase was in part the result of Treasury Bills
maturing and on another part due to better liquidity
management. Taking into account the end of year
2008 cash reserve requirements and prudent liquidity
levels, this can be seen as an excellent ratio.
An important driver of the comparatively low RoA (in
relation to other Caribbean banks) is the fact that
Suriname’s Central Bank cash reserve requirements
are very high. As a result, a large part of our assets can
not be distributed, or only against very low returns. In
the backdrop of the increasing regional competition,
the cash reserve requirements in Suriname should
become more in line with other CSME-member
countries.
Return on Equity (RoE)
Our RoE declined from 40.0% in 2007 to 34.4% in
2008. This decline is the result of a stronger increase in
the equity base in 2008 by 25.8% compared with a
growth in net income of 10.1%.
Results benchmark study 2008 (numbers in %)
Institution Period RoA RoE Efficiency Non-performing
ratio
ratio
NCB Jamaica Ltd. 2008 3.19 29.1 50.1 2.34
Republic Bank Ltd. 2008 3.05 23.1 45.9 1.79
RBTT Financial Holdings Ltd. 1) 2008 1.84 19.9 61.0 2.90
Scotiabank Trinidad & Tobago Ltd. 2008 3.34 25.4 41.6 0.84
Barbados National Bank Ltd. 2008 2.17 20.1 53.6 3.99
Republic Bank Guyana Ltd. 2008 1.94 27.2 40.9 3.07
DSB Bank N.V. 2008 1.62 22.1 55.4 n.a.
Hakrinbank N.V. 2008 1.90 34.4 55.1 1.72
Source: External Annual Reports
1) non-performing ratios year end 2007.

| 32 |
The increase of our equity has a positive impact on
our solvability position and therefore our financial
soundness. The recent developments in the international
financial system underline the importance of
sufficient buffers to compensate for any potential set
backs.
In absolute terms, as well as relative to our peer group,
our RoE is at an excellent level. The RoE varies in the
peer group between 19.9% and 29.1%.
Efficiency Ratio
The efficiency ratio has deteriorated somewhat from
54.4% in 2007 to 55.1% in 2008. This decline is the
consequence of an increase in operational expenses
by 16.2% vis-à-vis the benefits increase of 14.8%. The
bank’s objective to improve the efficiency ratio with
1.5 to 2 percentage points have not been able to be
realized. The most important reasons for this are the
devaluation of our international investment portfolio
and the relatively steep increase in staff expenses. The
efficiency ratio within our peer group varies between
the 40.9% and 61.0%.
Our aim remains valid to improve the bank’s efficiency
ratio. Essential in its realisation will be the containment
of the operational and especially the staff
expenses that have risen strongly in the last couple of
years. This increase is also caused by higher costs of
employee benefits, such as medical costs and pension
provisions. Also incorporated in the increase in staff
expenses is an incidental part that is related to the fact
that in 2008 and 2009 a number of staff members
retired or plan to retire. Their successors were all
attracted in 2008.
In view of the fact that the level of staff expenses is
intrinsically linked to certain labour rights, cost
containment will be focussed on changing and
improving the internal organisation and processes. In
line with this, the back-offices of the bank and its
subsidiary the NTFM NV will be centralised in 2009.
Still being considered is whether the local SRD and
foreign currency traffic will be housed under one
department. Furthermore, a consultant shall advise us
with respect to the control of medical costs. The
improvements in efficiency shall ultimately have
implications for the growth in the number of employment
opportunities within the bank.
Non-performing Ratio
The non-performing ratio of the consolidated lending
has increased somewhat from 1.62% as per year end
2007 to 1.72% in 2008. This increase has manifested
itself within the corporate as well as the consumer
credit portfolio. The low ratio is predominantly the
result of our cautionary intake policy. Due to the
deteriorated economic outlook we foresee an increase
in credit risks and in order to protect ourselves against
this risk, we have further optimized our intake
procedures. We attach a lot of value to a good quality
credit portfolio, despite the fact that this could
influence the growth of the portfolio. This policy shall
on the other hand diminish the level of required
provisions.
Our non-performing ratio is favourable in comparison
with the peer group that varies between 0.84%
and 3.99%. In addition this ratio is positive with
respect to our internally maintained norm of 3%
which is managed carefully. In book year 2008 the
Central Bank circulated a document calling on the
commercial banks to keep this percentage under 5%.
Credits Department
The consolidated lending increased in 2008 by 26%
and resulted in SRD 544.4 million. This increase is
comfortably above that budgeted for corporate as well
as consumer credits. This had a positive influence on
the interest rate business of the Hakrinbank, however
to a lesser extent on that of the Nationale Trust en
Financierings Maatschappij.
The credit growth was realized predominantly in the
sectors trade, homebuilding, construction and
installation, and consumer credit. The investments in
treasury bills declined to SRD 997,000.-, due to
principal payments at maturity as a result of the
improved financial position of the State. The return
on these investments has diminished further due to
the decline in interest rates on 1st January 2008 from
8% to 7.5% per annum.
The quality of the credit portfolio stayed, as previously
indicated, at a strong level. The dollarisation ratio in
the lending decreased in the book year from 44.1% to
41.0%. This decrease is in part due to the interest rate
incentives that are offered on SRD credits. It is the aim
of the Central Bank and commercial banks to
decrease dollarization even further in 2009.
An overview of our lending to the various sectors can
be found below. This overview has been compiled in
line with the classification model used by the Central
Bank of Suriname.

| 33 |
Hakrinbank complied with all the requirements of the
Loan Classification and Provisioning regulations in
2008 and also with all the other regulations applied by
the Central Bank of Suriname as part of its supervision
of the general banks.
Emphasis of the branches will be more towards
reaching the company’s growth objectives. As a result
more responsibilities will be delegated to branch
managers. Abovementioned steps wholly fit within
the strategy to commercialise and transform the
branches to profit centres. Hence more commercially
oriented officers rather than operational officers will
be responsible for the management of our branches.
In 2008 we have also been able to fill the vacancies in
the Credits department as a result of retirement and
rotation of two commercial officers. Two new
account-managers have also been recruited.
In order to increase the knowledge and skill level of
the assistant account managers, all participated in a
number of “Management skills” and “Customer Care”
training courses in 2008.
Within the credit business of the Hakrinbank the
emphasis in 2009 shall lay in the consolidation of the
credit portfolio and stricter supervision thereof, as
well as improvement in the internal organisation and
procedures of the credit department. This in light of
the possible repercussions the economic slowdown
may have on our clients and indirectly on our banking
business. In the budget of our credits department
lower growth than in previous years has already been
taken into account. This is also true for our subsidiary,
the Nationale Trust en Financierings Maatschappij.
Earnings capacity is expected to remain at a satisfactory
level.
Lending by sector (in thousands of SRD)
Year end
2008 in % 2007 in %
Agricultural sector 25,635.3 4.7 22,579.3 5.2
Fisheries 16,676.5 3.1 15,177.6 3.5
Forestry 3,533.5 0.6 3,024.1 0.7
Mining 591.5 0.1 1,349.2 0.3
Industry 41,012.9 7.5 33,801.2 7.8
Construction and installation 26,353.2 4.9 11,901.8 2.8
Electricity, gas and water 58.9 - 67.7 -
Total direct production sectors 113,861.9 20.9 87,900.9 20.3
Trade 143,575.3 26.3 122,974.1 28.5
Transport, storage and communications 21,661.3 4.0 5,936.1 1.4
Services 44,413.2 8.2 34,679.9 8.0
Housing Construction 112,230.8 20.6 92,350.4 21.4
Other (pred. Consumer credit) 108,658.3 20.0 88,150.4 20.4
Total other sectors 430,538.9 79.1 344,090.9 79.7
Total commercial lending 544,400.8 100.0 431,991.8 100.0
Treasury promissory notes (government) 996.6 14,745.0
Total general lending 545,397.4 446,736.8

| 34 |
SASH
The ‘jobon-theside’
of
Anita
Slaterus
developed in three
year’s time into
‘Sash’, a shop for the
fashion conscious.
Entrepreneurship
was an essential
part in her
upbringing and she
is one of the
youngest businesswomen
in Suriname.

| 35 |
Marketing and Public Relations Department
With respect to our marketing strategy various
concrete objectives have been formulated on various
levels, all aimed to contribute to the realisation of the
commercial objectives of the bank. Important in this
is to identify the various ways by which to improve
service. In accordance, before opening our Banking
Centre at the Nieuwe Haven Complex, a training
session was organized for our employees dealing with
a number of key topics such as friendliness towards
customers, modern banking and “cross-selling”. Our
service improved in the second half of the book year
with the introduction of our “loan calculator”.
Visitors to our website can, by filling in their net
income, calculate for themselves the maximum
allowable loan and the monthly interest and principal
payments they need to pay on a new credit line.
The Hakrinbank is very aware of its “corporate social
responsibility” and in this light we will again
support various activities in the area of sport, culture,
education and healthcare. The Hakrinbank School
Excellence Award has for the second time been
awarded to the School Community Lelydorp.
Hakrinbank awards through the sponsoring of the
GO GLO project of the Rotary the best students at the
primary school level in Suriname. The annual
Surinamese Srefidensi marathon was also generously
sponsored by our bank through the sponsoring of two
Kenyan athletes and through part of the price money
for the winners. Various Surinamese athletes also
received the opportunity to attend clinics offered by
the trainer of the Kenyan athletes, Mike Li A Lien.
Various organisations active in the area of education,
art and culture, healthcare and social care, science and
environived donations from our bank. The Hakrinbank
Chair “Money, Credit and Banking” at the
University of Suriname under the leadership of
Prof. dr. A. Caram, has in 2008 again proved its worth
and benefit.
Risk Management Department
In 2008 the upgrade of the Risk Management
Department (RMD) saw some delays. This was
related to only being able to fill the vacancy of risk
manager by the middle of the year. As a result only a
number of corporate objectives were fully realized.
The RMD focussed in 2008 especially on the analysis
of the credit risk policies and the execution of credit
risk assessments. Because of the less than favourable
developments in the international financial markets
in 2008, an even tighter control of risk exposure took
place. At year end we started with the further
formulation and structuring of the risk management
framework that is based on the principles of
Enterprise Risk Management (ERM).
In 2009 we will focus on the further structuring and
tightening of the risk management framework of the
organisation. In doing so we will continue our path of
anchoring and integrating this framweork within our
organisation, so that we can better identify, analyse
and contain risks in the future. The strategy shall have
as a primary focus the management of credit risks
using policy measures to better control processes and
procedures. In light of this, a Credit & Risk manual
shall be developed and the credit risk policy shall be
further elaborated on, whilst the risk management
reports shall be further developed and / or elaborated
on. In 2009 we shall also spend more time on
identifying, analysing, monitoring and reporting the
remaining risks that the bank faces esp. liquidity,
market and operational risks. The implementation of
the project “Risk Based Audit” can be seen within this
framework.
Internal Audit Department
In 2008 the Risk Based Audit (RBA) project which we
discussed in detail in our previous annual report,
showed substantial progress. A pilot project for the
Treasury & Securities department was initiated and
in the meantime implementations in other departments
such as the AMI and Foreign Transfers are
progressing satisfactorily.
In the RBA project, process management is central.
With the support of the internal control framework it
aims to ensure that execution of strategies and
business plans actually take place. The internal
control framework for the Hakrinbank and the
management of the activities are based on the
framework of the “Committee of Sponsoring
Organizations” of the Treadway Commission, the well
known COSO framework.
With the help of an effective and efficient risk based
audit plan, the Executive Board has a management
tool with which to control performance, risks, quality
of the costs of the organisation. Risk based audit is
designed towards integrating the business operations,
financial information reporting and the compliance
with the relevant laws and regulations. For this reason
the control system has become an integral part of the
business activities and the management process.

| 36 |
With the changing emphasis from the financial to
more operational audits, the Internal Audit
Department (IAD) now examines the effectiveness of
the risk management processes. With this, internal
codes of conduct, risk policies and the processes that
form the control-environment of the Hakrinbank
N.V., can be evaluated.
The IAD reports to the CEO and in certain cases also
to the Audit Committee concerning the effectiveness
and efficiency of the internal control framework and
the risk governance framework.
Implementation of the Risk Based Audit shall lead to
improvement of quality of the internal control within
the Hakrinbank and tightening of the risk management.
Treasury and Securities Department
The most important tasks of this department lie in the
area of liquidity management, the buying and selling
of foreign exchange and foreign exchange swaps, as
well as stockbrokerage.
Thanks to a focussed management, in this book
year the liquidity management of the bank is still
maintained at a satisfactory level. Management was
tightened even more with the aim to optimally
allocate and deploy liquidity. In the second half of
2008 as a result of the international crisis the focus has
been on a broad diversified placement of short term
foreign exchange investments so as to minimize risks.
Further steps will be taken to optimize the liquidity
management of foreign exchange whereby the
reliability and solvency of foreign financial institutes
are always taken into account.
Because of the bearish international stock market,
returns on our modest investment portfolio were
lower than expected and had to be devalued. In the
meantime we have modified our risk profile towards a
more conservative stance. Our expectation is that this
portfolio in 2009 will maintain its value and only in
2010 can a cautious rebound be expected.
Maintaining the small band for the foreign exchange
rate by the Central Bank of Suriname and the exchange
rate movements of the Euro versus the USD in 2008
had their effects on the foreign exchange market. The
market moved above the allowable band thus
negatively influencing the competitive positioning of
the banks.
Continuous monitoring of the market, as well as an
active approach towards market participants and new
clients have borne fruit. Through this the department
objectives were for the most part realized.
Our activities on the Suriname Stock Exchange are
presented in the overview previously in this report.
We initiated in our treasury department the implementation
of the COSO Risk Management framework
that is an extension of the Risk Based Audit
project. In 2009 the further implementation of this
framework will take place whereby we will take into
account the task expansion within the department.
Administration and Management Information
(AMI) Department
Accounting
In the reporting year we devoted special attention to
increasing our operational efficiency. The measures
we took included expanding electronic processing of
interbank payment transactions. In addition we also
commenced with the installation of the salary software,
that developed by our IT department, at client
sites for which we conduct salary processing. This has
led to a further increase of efficiency.
In 2008 we commenced with the clean up of the
Automatische Giro-Opdrachten (ago) database in
ICBS.
Furthermore we commenced with the critical
screening of the administrative processes of the
department, where the emphasis is put on the
improvement and control of operational risks and
efficiency.
Controlling
In light of our corporate governance objectives in
2007 attention was given to providing better information
to our shareholders and other internal and
external stakeholders. Against this backdrop we have
published our financial statements with cash flow
statements. This provides better insight into the
liquidity position of the bank. The cash flow overview
is constructed in conformity with the IAS
(International Accounting Standards) reporting
standards with regards to Cash Flow Statements. This
choice has been made as a result of our strategy to
gradually transition towards the International
Financial Reporting Standards (IFRS). In part due to
the economic integration in the Caribbean and the
resulting need for a better comparison of financial

| 37 |
statements, we deem application of the IFRS
standards of the utmost importance.
Our management reports are developed in conformity
to the formal organisational structure and have either
a predominantly functional or departmental orientation.
To improve our client management, the need for
information about our client base has increased. Our
activities in the area of management accounting have
in the book year also focussed on the integration of
the different (commercial) departments and/or
upgrading of information systems at the functional or
customer level. On the basis of the data compiled in
these systems, new reports shall be developed in 2009
that should provide even more insight into the individual
performance of the commercial staff members
and the earnings capacity of the various individual
customers. With this we aim to track even more
effectively our efforts with respect to optimizing our
customer relationship management.
The activities in the area of process control were
intensified in the book year. The Controlling department
plays an advisory role towards the departments
with regards to the design of their business processes
and the development of (risk) analyses, as well as a
supporting role with regards to the description of the
business processes and the development of manuals
(AO-Manual). The process in which department
heads are given much greater responsibility with
respect to the management of their departmental
business processes, has led to an elaborate documentation
of the business processes and risk analyses. The
evaluation of the design of the business processes
must be seen against the backdrop of efficiency
improvements.
Domestic Department / Cash Department
To improve our customer service we have expanded
our ATM-network and POS-base in this book year.
Our strategy is aimed at decreasing cash transactions.
It is with pleasure that we can report that the number
of POS transactions has increased significantly. More
and more clients are choosing modern banking
methods including the internet.
Through our switch company BNETS N.V. the
Hakrinbank N.V., RBTT bank (Suriname) N.V. and
the Surinaamse Postspaarbank executed the first
phase of our mobile recharge project. Customers that
wish to make use of this service can easily (by sending
a text message) recharge their prepay account with
Telesur, Digicel and Uniqa through their bank
account.
Maintenance & Technical Support (MTS)
Department
Against the backdrop of our effort to modernize our
branches, June 2008 saw the reopening of our Nieuwe
Haven branch that was entirely renovated. A start was
also made with the construction of the Cash
Department at our head office, whereby we also took
into account the need for a more efficient and safer
way to transport money. Money transportation
vehicles can now reach, via a specially enclosed
docking area, a special register in order to deposit
their cash.
In October of 2008 our customer calling centre was
replaced and a decision was made to install a Voice
over IP system in order to leverage our computer
network. The phone accessibility of our bank has
been improved through the introduction of this new
centre.
Foreign Transfers Department
Revenues from foreign payments increased in volume
by 20% in 2008. This growth can be attributed to the
offering of competitive prices.
The modest increase in previous years of the numbers
of L/C’s and debt collections – that were especially
linked to the export of timber – did not find its
continuation in 2008.
In the fourth quarter of 2008 the Hakrinbank
MasterCard credit cards were distributed in a pilot
project to a limited number of clients. In the second
quarter of 2009 these products shall be offered to the
general public.
Human Resources Management
We are conscious of the fact that the quality of
our staff is a critical success factor in reaching our
operational and strategic objectives. In the competitive
environment in which our bank operates, excellent
customer service can be used as a strategic weapon.
Our strategy is thus aimed at attracting the most
qualified personnel, identifying talent and encouraging
performance based management. Effort,
behaviour and performance of our personnel are
hereby key.
Change is the only constant and as such much
attention is given to training and schooling of our

| 38 |
personnel. In the reporting year our personnel
attended a multitude of trainings and seminars in
order to further develop the competences needed in
carrying out their tasks.
In the book year twenty new employees joined the
bank, whereas 10 employees left. At the end of 2008
our workforce was 262 employees strong, ten more
than the year before, of which 152 were female and
110 male.
A number of staff members reached the retirement
age in the book year, whilst another group will go on
retirement in 2009. In 2008 7 new staff members were
recruited mainly to replace those who either retired or
who are planned to retire.
It saddens us to mention that we had to pay our last
respects to Simone Janssen; she worked in our Latour
branch and passed away on 25th November 2008 after
a period of ill health.
In the reporting year we celebrated 22 anniversaries,
3 of which commemorating 40 years of service to the
bank: Chanderdew Bhoelai, Yvonne van Huisduinen-
Mansour and Carla Jong A Liem.
In 2007 a two year Collective Labour Agreement
was agreed upon with the Hakrinbank Labour
Organisation (HWO). Negotiations took place in
2008 concerning only the loans for that year.
Agreement was made for a loan increase of 13.5 %
and an additional lump sum of SRD 1,200.-.
Our staff association has, as in previous years, put
much effort into organising a number of events, of
which the very successful New Year’s festivities gave
rise to interesting discussions around the water
coolers.
Compliance and legal department
Ever more value is being given to adequate compliance
and a surge in focus on fair business and integrity has
become commonplace. Integrity is the basis of any
financial institution and as such the encouragement
and upholding of our bank’s integrity – in the most
elaborate sense of the word – is crucial to us.
The procedures and operational processes of our
bank are evaluated against the backdrop of the Risk
Based Audit project on compliance risks. When
necessary, from the standpoint of controlling our
risks, these are modified accordingly.
Our employees are conscious of the fact that insufficient
compliance can lead to a tarnished image that
can hamper growth opportunities or alienate existing
or potential clients – this in turn can again form a
threat to the equity and results of the bank. In the
reporting year we distributed to all our employees a
manual reiterating abidance of the compliance rules
and what we expect from our employees.

| 39 |
Nationale Trust- en Financierings
Maatschappij N.V.
Our subsidiary, the Nationale Trust & Financierings
Maatschappij N.V. (NTFM), has closed the book year
with satisfactory results. The branches of the Hakrinbank
have played a major role in this. Total assets
grew by 33% compared to the year before, from
SRD 111 million to SRD 146 million, driven predominantly
by growth in lending.
Revenues increased by 14%, however due to an
increase in costs, earnings declined by 2%. Our
production targets were nevertheless reached. Interest
rate margins narrowed as a result of competition and
the increased costs. The line items Revaluations and
Due from (…) increased due to a one off provision
and the growth in our lending business.
Mortgage loans
Mortgage loans outstanding increased by 28% to
SRD 76 million, comfortably above our growth
objectives. Due to the decrease in interest rates mortgage
loans became more accessible to a larger public.
In addition, the distribution of so called 7% mortgage
loans financed out of the cash reserves have had a
positive influence on the production.
Asset Management
Assets under management for third parties declined
in 2008 by 9%. Aforementioned assets are invested in
mortgages, predominantly in foreign exchange. The
demand for these loans is under pressure due to the
convergence between interest rates on SRD and
foreign exchange denominated notes. Borrowers
more often choose loans in SRD that are predominantly
closed with the Hakrinbank.
Outlook
We are taking into account a growth plateau in
production as a result of the economic downturn. The
consumer market is sensitive to business cycles and
we anticipate a decreased demand for our loan
products. In addition we foresee an increased
saturation in the vehicle market that will negatively
influence the number of car loans taken out. With
regards to the concessional mortgage loans however
we still expect growth. The returns of the Nationale
Trust & Financierings Maatschappij shall remain at a
satisfactory level, also thanks to the already reached
level of production.
Term Loans
Term loans increased by more than 45% to approximately
SRD 43 million. The branches have played an
important part in this increase, especially our branch
in Nieuw Nickerie. Through the revitalization of the
rice sector the NTFM has realized an increase in the
financing of agricultural equipment.
Personal loans
Outstanding personal loans increased by 31% to
reach nearly SRD 23 million. The growth is the result
of higher principal loan amounts as well as the
number of loans disbursed. The collaboration with
the large warehouses for the financing and sale of
durable consumer goods to clients has further
intensified. The promotion “Personal loans for the
purchase of your school requirements” before the
beginning of the new school year was again successful
in 2008.
Hogere financieringen landbouwequipment in
Nickerie.

| 40 |
The Financial development of the bank
Our bank has booked satisfactory results in 2008.
Total assets grew and the operational results
increased.
The financial objectives that we had set ourselves in
our Strategic Plan 2008-2010, have been only partly
realized due to a downward revision of the value of
our investment portfolio and some non-recurring
costs. These objectives were: earnings growth of at
least 10%, an increased market share in the credit
market, an increased share of non-interest rate
income versus total revenues and an improvement in
the efficiency ratio of approximately 2 percentage
points.
To underline the rights of the General Shareholder’s
Meeting with respect to earnings distribution, we
have included a line item of earnings before dividend
distribution. This corresponds with modern interpretations
of financial reporting. In the case of the
pre-advice of the Supervisory Board and for the
intent of analysis, the balance sheet after dividend
distribution is utilized. In addition, a consolidated
statement of cash flows will be presented that provides
insight into the liquidity movements in the book year.
A detailed analysis of the main items in the balance
sheet and the consolidated results of Hakrinbank can
be found below, followed by information on the
proposed distribution of earnings.
Total Assets (in millions SRD)
1,200
1,000
800
600
400
200
Consolidated Balance
The size of the business as measured by total assets
ended at the end of 2008 in SRD 972.6 million, an
increase of SRD 176.9 million or 22.2% compared
with the previous year. This increase was in line with
our expectations.
Most of the increase on the asset side of the balance
sheet can be attributed to the line items Due from
Clients, Cash and Cash equivalents and Due from
Credit Institutions. The line items Participating
Interest and Tangible Fixed Assets also showed an
increase. The line items Treasury Bills and Investments
show a clear decrease.
The line item Due from Clients, predominantly as a
result of lending, increased from SRD 432 million in
2007 to SRD 544.4 million at the end of the 2008 book
year. This increase of SRD 112.4 million or 26%
relates to loans in local currency and also to loans
denominated in foreign currencies. Most of the
increase in the loan portfolio was attributable to
lending in the trade, housing construction, and
construction and installation whilst our subsidiary,
the Nationale Trust en Financierings Maatschappij,
substantially grew its consumer credits.
The line item Cash and Cash Equivalents grew by
42.9% to SRD 150.7 million. This was related to the
increase of amounts Due to Third Parties.
The line item Due from Credit Institutions increased
by SRD 34.8 million to SRD 242.1 million as a result
of the rise in the foreign-currency credit balances held
for third parties. These are in part invested with
foreign banks.
The line item Participating Investments showed an
increase due to a debt-for-equity swap in BNETS N.V.
Treasury Bills decreased by SRD 14.7 million to
approximately SRD 1.0 million and ultimately to zero
in January 2009. Due to the improved cash position of
the State these bills were repaid at maturity.
The line item Tradable Securities shows a decline due
to the downward revaluation of the international
investment portfolio as a result of the bearish stock
market.
0

| 41 |
The liabilities side of the balance sheet consists of 3
main groups namely amounts Due to Third Parties, in
particular to clients, Provisions and Shareholders’
Equity.
Operating Income before tax
(in millions SRD)
Amounts Due to Clients, which represent our most
important source of funding, rose by SRD 156.8 million
or 22.7% to SRD 848.7 million. Savings, which
include long-term investments, rose by 32.6%, while
Other Liabilities, which include credit balances on
checking accounts increased less by a mere 13.7%.
This development reflects our policy of seeking to
attract more long-term funding in order to maintain a
healthy funding structure. This policy is supported by
the current stable macro-economic environment, in
which private individuals and businesses are
increasingly prepared to invest money for longer
periods.
The item Amounts Due to Credit Institutions rose by
SRD 5.6 million to reach SRD 45.9 million at the yearend.
This item relates to the daily clearing of amounts
owed to and by other banks in the interbank market
and is simply the position on the last day of the year.
Shareholders’ Equity will rise by SRD 11.2 million or
25.8% to SRD 54.5 million, assuming that the net
income of SRD 11.2 million will be added to the
Retained Earnings. In that case the reserve will increase
to SRD 45.0 million. Growth in the Shareholders’
Equity will increase the financial strength of the bank
and give it financial legroom to handle larger credit
requests.
Off balance sheet items, such as guarantees provided
and letters of credit opened, which have an impact on
the bank’s solvency position because of the element of
risk they entail, rose by SRD 2.3 million to SRD 25.2
million.
Consolidated results
The consolidated results showed a satisfactory result.
Because of one-off cost increases these results were
slightly less than budgeted.
The bank booked in the reporting year a net earnings
before taxes of SRD 26.3 million; an increase of nearly
SRD 2.5 million or 10.1% compared to 2007. Net
Earnings after tax were SRD 16,8 million and SRD 15.3
million in 2007. The increase was the result of an
increase in operating income of SRD 8.1 million or
14.8% to SRD 63.3 million and expenses of SRD 5.7
million or 18.3% to SRD 36.9 million.
Operating Income
The increase of operating income was predominantly
attributable to interest income. The remaining (noninterest)
income dropped by SRD 0.4 million because
of the negative result from financial transactions. The
share of non-interest income dropped as result with
approximately 4 percentage points to 20.8%, despite
our aim to bring this share up to 33.3%. If one-off
set backs had not occurred, there would be an
increase in the share of non-interest income
compared to 2007. Interest income currently accounts
for 79.2% (2007: 75.4%).
Interest Income
Net interest income rose in the reporting year by
SRD 8.6 million to SRD 50.1 million. This was the
result of growth in the lending portfolio. Despite the
fact that our investments with foreign banks
increased, interest income decreased as a result of
lower interest rates. Income from our investments in
Treasury Bills of the Republic of Suriname dropped
significantly due to the lower level of investments and
the lowering of the interest rate from 8% to 7.5% per
annum. Competition squeezed interest margins
somewhat lower. Earnings capacity however did
increase thanks to the growth in lending. This growth
was supported by the tightening of the credit and
balance management, especially the liquidity
management.

| 42 |
SUIT
‘Quality,
not
Quantity’
is considered to be the ‘core’ concept of Krishne ‘Bally’
Baldew.With SUIT which is the Dutch abbreviation for ‘Samen
Uit’ (going out together) he is fulfilling his dream to build an
entertainment centre that caters to the needs of the whole
family.The success of SUIT is demonstrated in the
popularity of its different facilities.

| 43 |
Non-interest income
Fee and commission income and other income
increased by SRD 3.3 million to SRD 15.2 million
primarily because of earnings from domestic and
international payment services, treasury activities
and lending related income such as arrangement fees
and guarantee commission.
The result of financial transactions showed a clear
decline of SRD 2 million. This result is due to the loss
in value of our international investment portfolio due
to the bearish market. 2008 saw no new investments
and our intention is not to expand on our portfolio.
Our expectation is that the international stock markets
will gradually rebound when the world economy
will start to pick up steam again in 2010.
Expenses
Operating expenses rose by SRD 4.9 million or 16.2%
to approximately SRD 34.8 million. The largest
increase took place in the staff expenses as a result of
salary increases, one-off higher costs due to temporary
overcapacity in some departments right before retirement
of some key staff members and necessary
adjustment to pensions.
The increase of other operating expenses was
predominantly die tot an increase in IT, marketing
and security expenses.
tailored to the banking sector. The BIS ratio relates
shareholders’ equity to the sum of the various riskweighted
assets and is a better way of assessing the
solvency of a bank.
The capital ratio at the 2008 year-end was 5.60%,
which represented an increase of 0.16 percentage
points in comparison to last year. The increase was
attributable to the rise in shareholders’ equity that
ended up somewhat higher than on the balance sheet.
Tangible shareholders’ equity as a percentage of Due
from Clients remained unchanged at 10.01.
The bank’s BIS ratio at the year-end was 11.49%,
compared with 10.56% at the end of 2007. As usual,
we comfortably complied with the solvency standards
set by the Central Bank of Suriname. These are in
essence based on the Basle I Capital Accord, which
specifies a minimum ratio of 8%.
BIS ratio (in %)
The increase in operational expenses was higher than
budgeted in the area of staff costs. Our policy aim to
contain costs and improve efficiency remains valid.
We shall in 2009 continue to give priority to cost
containment and efficiency improvements. Objective
is to annually improve the efficiency ratio by 1.5 - 2%
percentage points.
A total of SRD 2.1 million was transferred to specific
provisions for bad and doubtful debtors in
comparison to 1.2 million in the year before. This
transfer is the result of the growth in our loan portfolio.
The quality of the lending portfolio remained at
a good level, thanks to the very prudent policies we
apply when assessing credit quality.
Ratio’s
Solvency
The most important solvency ratios are the capital
ratio and the BIS ratio. The capital ratio, which is the
ratio of tangible shareholders’ equity to total assets, is
a standard solvency ratio, while the BIS ratio is more
Profitability
The most important indicators of our earnings
capacity are the RoE and RoA, which are discussed in
detail in the ‘Business of the bank’ section of this
report. Both these ratios improved thanks to the
operating results achieved for the year
The sharp rise in shareholders’ equity had as a
consequence that the RoE dropped from 40.0% to
34.4%, however in comparison with other banks
(peer group) this was still at an excellent level.

| 44 |
Return on equity (in %)
Return on assets (in %)
RoA declined from 2.18% to 1.90% due to the
stronger increase of total assets in comparison to the
increase in net earnings. Our aim is to increase RoA
though growth in other income and the implementation
of efficiency enhancing measures. In addition,
the RoA of Surinamese banks is negatively influenced
by the higher cash reserve requirements, rendering a
significant part of the assets unable to generate
returns.
of cost saving and efficiency improving measures
through the modification and streamlining of our
organisation and processes.
Efficiencyratio (in %)
Operations
The most important operational or productivity ratio
is the efficiency ratio. The efficiency ratio, which is
the total expenses less provisions expressed as a
percentage of total income, is a good measure of
operating efficiency. The lower this ratio is, the more
efficient the operations are.
The operational objectives for the efficiency ratio
of 52% were not realized due to the increase in
operational expenses by 16.2% and Income by
merely 14.8%. This was caused by one-off costs. Our
foreign investment portfolio was devalued and staff
expenses increased. As a result the recent downward
trend in the ratio was turned around. The ratio
worsened from 54% in 2007 to 55% in 2008. If
aforementioned devaluation is not taken into account
the operational efficiency would have improved. Our
goal is to focus on bringing the ratio back by 1.5 - 2
percentage points per year. As a result we give priority
to further asset and liability management, increase of
the earning capacity and a rigorous implementation
Hakrinbank shares
Our policy is to pay an attractive dividend representing
one third of the net earnings for the year. This
policy also takes account of our solvency, earnings
capacity and growth objectives.

| 45 |
MYLAB
MyLab is a clinical-chemical and hematological laboratory.
Through their vast network of service points in Paramaribo
and districts, around the corner service is provided.
Modernized/well-run logistics and the use of high-tech
equipment guarantee customers fast and qualitative service.
Service
around
the
corner.
The developments in the share price reflect the
|favourable development of our business over the
years, with both earnings and dividends per share on
a rising trend. The price/earnings ratio indicates that
Hakrinbank shares are a good investment. For the
purposes of comparison, the previous years’ figures
have been converted to reflect the exchange of 20 old
shares of SRG 7.50 nominal value for each new share
of SRD 0.15 nominal value that took place in 2006.
Key figures showing development of Hakrinbank share (in SRD)
Year end 2008 2007 2006 2005 2004
Price at year-end 174.00 150.00 136.00 124.00 106.00
Book value of Equity 116.97 92.99 71.37 45.59 33.38
Market capitalisation (x SRD 1,000) 81,031 69,854 63,335 57,746 49,364
Net earnings per share 36.15 32.84 27.41 18.20 11.79
Dividend per share 12.00 11.00 10.00 6.07 4.00
Dividend yield (%) 6.9 7.3 7.4 4.9 3.8
Price/ Book value (%) 148.8 161.3 190.6 272.0 317.6
Price/Earnings ratio at year-end 4.8 4.6 5.0 6.8 9.0

| 46 |
Development of share price on the Suriname
Stock Exchange (in SRD)
Financial Outlook 2009
The expected economic slowdown shall ultimately
have its effect on our banking organisation. 2009 shall
thus be seen as a year in which favourable results
from the previous years shall be consolidated. The
emphasis shall also lie in the strengthening of the
internal organisation of the bank and its processes. In
our projections we have taken into account the
growth percentages of our assets as well as our
earnings capacity. Our objective is sound, sustainable
growth.
Earlier in this report we noted that some of our key
staff and an assistant director either retired or are
planned to retire in 2008 and 2009. Most of the
successors were recruited in 2008 and it will be a great
challenge to integrate these new employees into our
team of staff members. We are however hopeful that
we will be successful.
Earnings distribution proposal for the book year
2008
As presented earlier, the net earnings of SRD 36.15
per share were 10% higher than in 2007. The
improved underlying result and the bank’s reasonable
solvency position result in our ability to propose a
cash dividend to the General Shareholders’ Meeting
that is 9% higher than in 2007. The proposed increase
in the dividend demonstrates the importance we
attach to generating value for our shareholders.
We propose distributing the earnings as follows:
1. Payment of a cash dividend of SRD 12 per share of
par value SRD 0.15 which amounts to a dividend
percentage of 8,000% (based on Par value). An
amount of SRD 4.00 per share was distributed as
an interim dividend in August 2008, which
means a total amount of SRD 5.6 million being
distributed for the year and a pay-out ratio of
33.2%. In 2007 this was 33.5%.
2. Transfer of the remaining earnings of SRD 8.1
million to Retained Earnings.
The proposed distribution of earnings will further
reinforce the bank’s shareholders’ equity. This will
increase the bank’s solidity and improve its potential
for growth, while also ensuring we can comply with
the Central Bank of Suriname’s requirement for
investment programmes to be funded by shareholders’
equity. In addition this has a positive effect on
our business activities seeing as more and larger
credit requests can be considered.
The objectives for 2009 are noted in our annual plan
that forms part of the Strategic Policy Plan 2008-2010.
We shall give all of our efforts in realize these.
Our employees have again put in another excellent
performance in 2008 that was also at the heart of our
excellent performance in the past years. We owe them
our thanks are gratitude for their continued efforts
and loyalty.
We should also like to take this opportunity to thank
all the members of the Supervisory Board for their
active involvement in our activities and the tremendous
efforts they made during the year.
We are obviously also particularly grateful to our
many and valued clients – both consumer and
commercial – for their business and the trust and
loyalty they have shown to Hakrinbank N.V. and its
subsidiary, the Nationale Trust- en Financierings
Maatschappij.
Paramaribo, 14 April 2009
Executive Board Hakrinbank N.V.
Drs. J.D. Bousaid, Chief Executive Officer

| 47 |
ISADOU
‘You are
Welcome.’
Since 2000 Selientje
Adipi, hostess of the
vacation getaway
island Isadou near
theJaw Jaw Sula.
welcomes her guests.
Together with a team
of dedicated
employees she ensures
that a visit to this
island in Suriname’s
interior is indeed an
extraordinary
experience.

| 48 |
SURINAME
SEA CATCH
Selling
world
wide.
Suriname Sea Catch N.V. produces high quality fish products
that are exported worldwide. Ma Hsing Jui (CEO) came to
Suriname 20 years to set up a soy sauce production line for a
local food production company.After a while he decided to go
into fisheries.With support of the Hakrinbank he was able to
start his own company, which nowadays has grown into one of
Suriname’s biggest.

| 49 |
AUDITOR’S REPORT
To: the General Shareholders’ Meeting, the Board of
Supervisory Directors and the Board of Directors of
the Hakrinbank N.V.
Accountant’s Statement
We have audited the accompanying financial
statements 2008 of Hakrinbank N.V. in Paramaribo
which consist of the consolidated balance sheet on
December 31, 2008, the consolidated income
statement for 2008, the consolidated cash flow
statement, the company balance sheet on December
31, 2008, the company income statement for 2008, and
the notes to these financial statements.
Responsibility of Management
Management of the company is responsible for the
preparation and fair presentation of the financial
statements, in accordance with generally accepted
accounting principles. Management’s responsibility
includes among others: designing, implementing
and maintaining internal control relevant to the
preparation and fair presentation of the financial
statements that are free from material misstatement,
whether due to fraud or error; selecting and applying
appropriate accounting policies; and making
accounting estimates that are reasonable in the
circumstances.
Responsibility of Auditor
Our responsibility is to express an opinion on
the financial statements based on our audit. We
conducted our audit in accordance with generally
accepted auditing standards. These standards require
that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance
whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in
the financial statements. The procedures selected
depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of
the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor
considers internal control relevant to the company’s
preparation and fair presentation of the financial
statements in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the company’s internal control. An audit also
includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting
estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to
above give a true and fair view of the financial
position of Hakrinbank N.V. on December 31, 2008,
and of its result for the year then ended in accordance
with generally accepted accounting principles.
Paramaribo, 14 April 2009
Lutchman & Co
An independent correspondent firm of Deloitte Touche
Tohmatsu
Duly signed
drs. M.R.A. Lutchman RA

| 51 |
HAKRINBANK N.V.
ANNUAL REPORT 2008
comprising:
- Consolidated balance sheet before earnings distribution
- Consolidated balance sheet after earnings distribution
- Consolidated income statement
- Consolidated cash flow statement
- Company balance sheet before earnings distribution
- Company balance sheet after earnings distribution
- Company income statement
- Notes

| 52 |
CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2008
BEFORE EARNINGS DISTRIBUTION (in SRD)
2008 2007
ASSETS
Cash and cash equivalents 150,705,816 105,485,107
Treasury Bills 996,586 14,745,085
Due from credit institutions 242,074,160 207,239,512
Due from clients 544,400,835 431,991,830
Tradable Securities 8,742,084 12,600,297
Participating interest 1,411,550 168,000
Tangible fixed assets 21,855,144 20,473,896
Prepayments and accrued income 2,425,723 3,048,996
972,611,898 795,752,723
LIABILITIES
Due to credit institutions 45,904,395 40,349,149
Due to clients:
- Savings 435,833,864 328,758,879
- Other debts 412,827,170 363,110,691
Other liabilities 4,355,223 3,729,072
Accruals and deferred income 2,719,749 2,374,500
Provisions 10,912,064 9,002,386
912,552,465 747,324,677
Authorised share capital 120,000 69,854 69,854
Issued and paid-in capital 916 916
Share premium reserve 9,404,493 9,486,491
Revaluation reserve 33,748,129 23,576,257
Retained Earnings 16,836,041 15,294,528
Result book year 60,059,433 48,428,046
972,611,898 795,752,723
Liabilities relating to indemnities and guarantees 21,034,117 18,402,235
Liabilities relating to irrevocable documentary credits 4,210,495 4,567,138
Paramaribo, 14 April 2009
25,244,612 22,969,373
Supervisory Board:
Executive Board:
Mr. A.K.R. Shyamnarain - Chairman Drs. J.D. Bousaid - Chief Executive Officer
Drs. H.B. Abrahams - Deputy Chairman Mr. M.M. Tjon A Ten - Chief Operating Officer
Ir. R.A. Mac Donald
Drs. G.M. Raghoenathsingh - Chief Financial Officer
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-Sjin

| 53 |
CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2008
AFTER EARNINGS DISTRIBUTION (in SRD)
2008 2007
ASSETS
Cash and cash equivalents 150,705,816 105,485,107
Treasury paper 996,586 14,745,085
Due from credit institutions 242,074,160 207,239,512
Due from clients 544,400,835 431,991,830
Tradable Securities 8,742,084 12,600,297
Participating interest 1,411,550 168,000
Tangible fixed assets 21,855,144 20,473,896
Prepayments and accrued income 2,425,723 3,048,996
972,611,898 795,752,723
LIABILITIES
Due to credit institutions 45,904,395 40,349,149
Due to clients:
- Savings 435,833,864 328,758,879
- Other debts 412,827,170 363,110,691
Other liabilities 9,943,575 8,851,728
Accruals and deferred income 2,719,749 2,374,500
Provisions 10,912,064 9,002,386
918,140,817 752,447,333
Authorised share capital 120,000
Issued and paid-in capital 69,854 69,854
Share premium reserve 916 916
Revaluation reserve 9,404,493 9,486,491
Retained Earnings 44,995,818 33,748,129
Result book year 54,471,081 43,305,390
972,611,898 795,752,723
Liabilities relating to indemnities and guarantees 21,034,117 18,402,235
Liabilities relating to irrevocable documentary credits 4,210,495 4,567,138
Paramaribo, 14 April 2009
25,244,612 22,969,373
Supervisory Board:
Executive Board:
Mr. A.K.R. Shyamnarain - Chairman Drs. J.D. Bousaid - Chief Executive Officer
Drs. H.B. Abrahams - Deputy Chairman Mr. M.M. Tjon A Ten - Chief Operating Officer
Ir. R.A. Mac Donald
Drs. G.M. Raghoenathsingh - Chief Financial Officer
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-Sjin

| 54 |
CONSOLIDATED INCOME STATEMENT FOR 2008 (in SRD)
2008 2007
OPERATING INCOME
Interest margin 50,114,238 41,543,200
Fee and commission income 15,108,996 11,838,030
Result of financial transactions -2,024,285 1,724,477
Other operating income 56,065 18,140
63,255,014 55,123,847
OPERATING EXPENSES
Staff Expenses 23,712,622 19,569,202
Depreciation 2,693,933 2,725,568
Other operating expenses 8,434,936 7,688,806
Provisions for credit losses on lending related commitments 2,107,208 1,242,571
36,948,699 31,226,147
EARNINGS BEFORE TAX 26,306,315 23,897,700
Corporate income tax 9,470,274 8,603,172
EARNINGS AFTER TAX 16,836,041 15,294,528
Paramaribo, 14 April 2009
Supervisory Board:
Executive Board:
Mr. A.K.R. Shyamnarain - Chairman Drs. J.D. Bousaid - Chief Executive Officer
Drs. H.B. Abrahams - Deputy Chairman Mr. M.M. Tjon A Ten - Chief Operating Officer
Ir. R.A. Mac Donald
Drs. G.M. Raghoenathsingh - Chief Financial Officer
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-SjinDrs. J.J.F. Tjang-A-Sjin

| 55 |
CONSOIDATED CASH FLOW STATAMENT 2008 (in SRD)
2008 2007
Cash from Operating Activities
Earnings before tax 26,306,315 23,897,700
Changes in:
Depreciation Tangible Fixed Assets 2,693,933 2,725,568
Changes in Provisions Credit Risks 2,107,208 1,242,571
Changes in Other Provisions 2,062,546 1,898,644
33,170,002 29,764,483
(Increase) / decrease Treasury Bills 13,748,499 17,358,883
(Increase) / decrease Due from Credit Institutions -34,834,648 -40,630,169
(Increase) / decrease Loans -115,759,763 -126,785,386
(Increase) / decrease Tradable Securities 3,858,213 -6,516,875
(Increase) / decrease Prepayments and Accrued Income 623,273 -711,918
Increase / (decrease) Due to Credit Institutions 5,555,246 18,276,590
Increase / (decrease) Due to Customer 156,791,464 161,665,577
Increase / (decrease) Accruals and Deferred Income 345,249 -381,811
Increase / (decrease) Other Liabilities 2,391,429 -1,690,470
Paid Income Tax -11,004,722 -9,253,861
Net Cash from Operations 54,884,242 41,095,043
Cash from Investing Activities
Investments Tangible fixed assets -3,391,321 -1,588,529
Increase (Participating) Investments -683,860 -954,196
Net Cash from Investing Activities -4,075,181 -2,542,725
Cash from Financing Activities
Cash Dividend -5,588,352 -5,122,656
Net Cash from Financing Activities -5,588,352 -5,122,656
Net Increase in Cash 45,220,709 33,429,662
Cash and Cash Equivalents as of 1 January 105,485,107 72,055,445
Cash and Cash Equivalents as of 31 December 150,705,816 105,485,107
The cash flow overview has been presented using the indirect method. Herein changes are incorporated that
lead to a change in cash and cash equivalents. The debt owed to the Hakrinbank N.V. by BNETS N.V. has been
swapped into equity to the amount of SRD 1,243,550 shares of BNETS N.V. This swap concerns a non cash
transaction that does not appear in the cash flow statement.

| 56 |
COMPANY BALANCE SHEET AS OF 31 DECEMBER 2008
BEFORE EARNINGS DISTRIBUTION (in SRD)
2008 2007
ASSETS
Cash and cash equivalents 150,705,816 105,485,107
Treasury bills 996,586 14,745,085
Due from credit institutions 242,074,160 207,239,512
Due from clients 402,748,639 325,570,246
Tradable Securities 8,742,084 12,600,297
Participating interest 142,733,121 106,396,606
Tangible fixed assets 21,824,730 20,414,877
Prepayments and accrued income 1,821,685 2,806,062
971,646,821 795,257,792
LIABILITIES
Due to credit institutions 45,904,395 40,349,149
Due to clients:
- Savings 435,762,804 328,658,274
- Other debts 411,515,740 362,606,806
Other liabilities 3,949,104 3,146,955
Accruals and deferred income 3,543,281 3,066,176
Provisions 10,912,064 9,002,386
911,587,388 746,829,746
Authorised share capital 120,000
Issued and paid-in capital 69,854 69,854
Share premium reserve 916 916
Revaluation reserve 9,404,493 9,486,491
Retained Earnings 33,748,129 23,576,257
Result book year 16,836,041 15,294,528
60,059,433 48,428,046
971,646,821 795,257,792
Liabilities relating to indemnities and guarantees 21,034,117 18,402,235
Liabilities relating to irrevocable documentary credits 4,210,495 4,567,138
Paramaribo, 14 April 2009
25,244,612 22,969,373
Supervisory Board:
Executive Board:
Mr. A.K.R. Shyamnarain - Chairman Drs. J.D. Bousaid - Chief Executive Officer
Drs. H.B. Abrahams - Deputy Chairman Mr. M.M. Tjon A Ten - Chief Operating Officer
Ir. R.A. Mac Donald
Drs. G.M. Raghoenathsingh - Chief Financial Officer
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-SjinDrs. J.J.F. Tjang-A-Sjin

| 57 |
COMPANY BALANCE SHEET AS OF 31 DECEMBER 2008
AFTER EARNINGS DISTRIBUTION (in SRD)
2008 2007
ASSETS
Cash and cash equivalents 150,705,816 105,485,107
Treasury paper 996,586 14,745,085
Due from credit institutions 242,074,160 207,239,512
Due from clients 402,748,639 325,570,246
Tradable Securities 8,742,084 12,600,297
Participating interest 142,733,121 106,396,606
Tangible fixed assets 21,824,730 20,414,877
Prepayments and accrued income 1,821,685 2,806,062
971,646,821 795,257,792
LIABILITIES
Due to credit institutions 45,904,395 40,349,149
Due to clients:
- Savings 435,762,804 328,658,274
- Other debts 411,515,740 362,606,806
Other liabilities 9,537,456 8,269,611
Accruals and deferred income 3,543,281 3,066,176
Provisions 10,912,064 9,002,386
917,175,740 749,391,074
\Authorised share capital 120,000
Issued and paid-in capital 69,854 69,854
Share premium reserve 916 916
Revaluation reserve 9,404,493 9,486,491
Retained Earnings 44,995,818 33,748,129
Result book year 54,471,081 43,305,390
971,646,821 795,257,792
Liabilities relating to indemnities and guarantees 21,034,117 18,402,235
Liabilities relating to irrevocable documentary credits 4,210,495 4,567,138
Paramaribo, 14 April 2009
25,244,612 22,969,373
Supervisory Board:
Executive Board:
Mr. A.K.R. Shyamnarain - Chairman Drs. J.D. Bousaid - Chief Executive Officer
Drs. H.B. Abrahams - Deputy Chairman Mr. M.M. Tjon A Ten - Chief Operating Officer
Ir. R.A. Mac Donald
Drs. G.M. Raghoenathsingh - Chief Financial Officer
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-SjinDrs. J.J.F. Tjang-A-Sjin

| 58 |
COMPANY INCOME STATEMENT2008 (in SRD)
2008 2007
OPERATING INCOME
Interest margin 40,750,943 32,854,968
Fee and commission income 13,135,355 10,556,601
Result of financial transactions -2,024,285 1,724,477
Other operating income 56,065 18,140
51,918,078 45,154,186
OPERATING EXPENSES
Employees 20,598,706 16,824,796
Depreciation 2,664,141 2,693,760
Other operating expenses 8,084,081 7,242,078
Provisions for credit losses on lending related commitments 1,286,954 1,660,255
32,633,882 28,420,889
EARNINGS BEFORE TAX 19,284,196 16,733,297
Income Tax 6,942,311 6,023,987
12,341,885 10,709,310
Result (after tax) 4,494,156 4,585,218
EARNINGS AFTER TAX 16,836,041 15,294,528
Paramaribo, 14 April 2009
Supervisory Board:
Executive Board:
Mr. A.K.R. Shyamnarain - Chairman Drs. J.D. Bousaid - Chief Executive Officer
Drs. H.B. Abrahams - Deputy Chairman Mr. M.M. Tjon A Ten - Chief Operating Officer
Ir. R.A. Mac Donald
Drs. G.M. Raghoenathsingh - Chief Financial Officer
G. Lie Sem-Nawikromo
H.R. Ramdhani
Drs. M.M. Sandvliet M.Sc.
Drs. J.J.F. Tjang-A-SjinDrs. J.J.F. Tjang-A-Sjin

| 59 |
NOTES TO THE 2008 CONSOLIDATED BALANCE AS OF 31 DECEMBER 2008
AND INCOME STATEMENT OVER 2008
General
Balances have been presented both before as well as after earnings distribution.
The proposed distribution over 2008 has been incorporated in the balance after distribution.
The earnings distribution over 2007 has been determined in the General Shareholders’ Meeting on 29 April 2008
as follows (amounts in SRD):
Net Income 15,294,528
Cash dividend 5,122,656
To Retained Earnings 10,171,872
Unless stated otherwise, assets and liabilities are shown at face value.
Loans and deposits in foreign currencies are converted at the Central Bank of Suriname’s buying rate for bank
notes on the balance sheet date (2008: USD 1 = SRD 2.71 and EUR 1 = SRD 3.809 / 2007: USD 1 = SRD 2.71 en
EUR 1 = SRD 3.970).
Due from Clients are shown net of specific provisions for credit risks. The movement in these provisions is taken
to the income statement for the year.
The corporate income tax shown in the earnings and loss account is calculated on the commercial earnings for
the year (less the result from participating interests).Any difference between this figure and the actual tax due
is taken to the provision for deferred taxation liabilities.
Tangible fixed assets are shown at replacement value, with buildings being depreciated on a straight-line basis
over their useful economic life. Vehicles and inventory are valued at purchase price after subtraction of linear
depreciation on the basis of estimated useful economic life. Changes in value are taken to the revaluation reserve,
less any tax due on the changes. The revaluation reserve is shown as a separate element of shareholders’ equity,
less any deferred taxation. Deferred taxation is calculated on the present value, assuming a tax rate of 36%.
The yearly depreciation percentages utilized are:
- Buildings 4% - 5%
- Land improvements 10%
- Vehicles and office inventory 25%
The consolidated financial statements contain the figures of the bank and its wholly owned subsidiary,
Nationale Trust- en Financierings Maatschappij N.V.
The proposed distribution of profit over 2008 is as follows (amounts in SRD):
Cash Dividend
- interim-dividend 1,862,784
- closing dividend 3,725,568
To Retained Earnings 11,247,689
16,836,041
The notes below are, unless otherwise stated, related to the consolidated figures. The comparative figures are
related to the figures as per 31 December 2007. All amounts are in Surinamese Dollar.

| 60 |
BALANS PER 31 DECEMBER 2008
2008 2007
ASSETS
Cash and cash equivalents 150,705,816 105,485,107
This item comprises cash, credit balances available on demand from
the Central Bank of Suriname and the cash reserve held in SRD at the
Central Bank of Suriname and not freely available to Hakrinbank N.V.
Treasury bills 996,586 14,745,085
This item comprises investments in treasury promissory notes of the
Republic of Suriname. These notes have maturities of 6 months and
pay interest of 7.5% per annum (2007: 8%).
Due from credit institutions 242,074,160 207,239,512
This item comprises receivables owed by domestic and foreign credit
institutions, together with the foreign currency cash reserve required
by the Central Bank of Suriname, held at foreign banks and not freely
available to Hakrinbank N.V.
Due from clients 544,400,835 431,991,830
This item comprises receivables owed as a result of lending, net of any
provisions deemed necessary.
Tradable Securities 8,742,084 12,600,297
This line item relates to the investments in international stocks
through an international investment bank and the shares in
Nationale Ontwikkelingsbank van Suriname N.V. (NOB.) at a
nominal value of SRD 95. Foreign investments are marked to market
as of the book year end and the shares in NOB. at the lower of the
purchase and market value. The foreign investment portfolio shows a
decline in value as a consequence of the lower shares prices in the
international stock markets.
Participating interest (in company balance sheet) 142,733,121 106,396,606
This item comprises a participating interest of 100% in the capital
of SRD 5,000 of Nationale Trust- en Financierings Maatschappij N.V.
This is shown at net asset value, while the receivable is shown at face value.
It also includes the participating interest in the capital of BNETS N.V.
of SRD 168,000, which is shown at cost. In order to improve the capital
structure a part of the BNET N.V. outstanding debt was swapped into
shares of BNETS N.V. The valuation took place against the purchase price.

| 61 |
BALANS PER 31 DECEMBER 2008
2008 2007
Tangible fixed assets
Properties:
Balance sheet as of 1 January 15,907,125 16,523,168
Investments 824,359 223,083
Depreciation 864,265 839,126
Balance sheet as of 31 December 15,867,219 15,907,125
Replacement value 32,143,595 31,319,236
Cumulative depreciation 16,276,376 15,412,111
Balance sheet as of 31 December 15,867,219 15,907,125
Inventory and vehicles:
Balance sheet as of 1 January 3,612,575 4,133,571
Investments 2,566,962 1,401,797
Adjustments - -36,351
Depreciation 1,829,668 1,886,442
Balance sheet as of 31 December 4,349,869 3,612,575
Cost 15,696,610 13,129,648
Cumulative depreciation 11,346,741 9,517,073
Book value as per 31 December 4,349,869 3,612,575
Investments in progress
Work in progress 555,304 311,407
Prepaid to suppliers 1,082,752 642,789
Total investments in progress 1,638,056 954,196
Total Tangible Fixed Assets 21,855,144 20,473,896
Prepayments and accrued income 2,425,723 3,048,966
This item comprises investments in progress, prepayments of
expenses attributable to future years and amounts earned,
but not yet collected.

| 62 |
2008 2007
LIABILITIES
Due to credit institutions 45,904,395 40,349,149
This item comprises liabilities to local and foreign banks.
Due to clients (Savings)
This item comprises:
Deposits and savings certificates 20,487,532 16,663,433
Balances on savings accounts and in savings books 415,346,332 312,095,446
435,833,864 328,758,879
Due to clients (Other debts) 412,827,170 363,110,691
This item comprises liabilities relating to the bank’s operating
activities that are not included in savings or amounts owed to
credit institutions.
Other liabilities 9,943,575 8,851,728
This item comprises liabilities not able to be included under
any other heading.
Accruals and deferred income 2,719,749 2,374,500
This item comprises prepayments received of income attributable
to future years and amounts still to be paid in respect of expenses
attributable to previous years.
Provisions
This item comprises:
Deferred taxation liabilities 1,478,086 1,630,954
Provision for pensions 2,082,407 1,782,407
Provision for medical expenses and bonuses/extras for pensioners 7,216,071 4,804,150
Maintenance fund - 649,375
Provision for insurance excess (‘own risk’) 135,500 135,500
10,912,064 9,002,386
Issued and paid-in capital
The par value of a share is SRD 0.15
Balance sheet as per 1 January 69,854 69,854
Share premium reserve
Balance sheet as of 1 January 916 916

| 63 |
2008 2007
Revaluation reserve
Balance sheet as of 1 January 9,486,491 9,590,657
Increase / (decrease) -81,998 -104,166
Balance as of 31 December 9,404,493 9,486,491
Retained Earnings
Balance sheet as of 1 January 33,748,129 23,576,257
Addition of net earnings 11,247,689 10,171,872
Balance as of 31 December 44,995,818 33,748,129
Liabilities relating to indemnities and guarantees 21,034,117 18,402,235
This item comprises bank guarantees issued on behalf of
third parties.
Liabilities relating to irrevocable documentary credits 4,210,495 4,567,138
This item comprises irrevocable and confirmed documentary
credits issued.

| 64 |
INCOME STATEMENT 2008
2008 2007
Interest margin 50,114,238 41,543,200
This item comprises the positive difference between interest income
from lending, investments and other assets on the one hand and
interest expense on funds borrowed by or entrusted to the bank
on the other hand.
Fee and commission income 15,108,996 11,838,030
This item comprises fees and commission received in return for
services provided.
Result of financial transactions -2,024,285 1,724,477
This item comprises the results of currency transactions, currency
translation differences and movements in the value of Tradable
Securities.
Other operating income 56,065 18,140
This item comprises income not relating to the bank’s core activities.
Staff Expenses 23,712,622 19,569,202
This item comprises wages, salaries, bonuses, social security
expenses and other staff provisions.
Depreciation 2,693,933 2,725,568
This item comprises the depreciation on tangible fixed assets,
Other operating expenses 8,434,936 7,688,806
This item comprises accommodation, office and computer
expenses and the like.
Provision for credit risks 2,107,208 1,242,571
This item comprises the transfer to specific provisions in respect
of lending activities.
Corporate income tax 9,470,274 8,603,172
This item comprises the corporate income tax calculated on the
gross earnings shown in the earnings and loss account.
Distribution of earnings
Cash dividend 1,862,784 1,397,088
- interim-dividend 3,725,568 3,725,568
- closing dividend 11,247,689 10,171,872
To Retained Earnings 16,838,041 15,294,528

| 65 |
OTHER INFORMATION
Resume and details regarding ancillary positions of members
of the Supervisory Board and Executive Board of Hakrinbank
Supervisory Board
Mr. A.K.R. (Roy) Shyamnarain
Chairman
Mr Shyamnarain trained as a tax lawyer, with supplementary training in
general law at the University of Leiden. He is a partner in Tjong A Hung Tax
Advisers and has also worked for the tax authorities in the Netherlands and
as an adviser to the Minister of Finance in Suriname. He is also chairman of
the Foreign Currency Control Board and a member of the IFONS
Supervisory Committee.
Drs. H.B. (Enrico) Abrahams
Deputy Chairman
Mr Abrahams graduated in Economics from the Erasmus University in
Rotterdam in 1969. He is the Managing Director of the Government Debt
Management Office and has also been Head of Economic and Social
Planning at Suriname’s National Planning Office and managing director of
Melkcentrale N.V.
Ir. R.A. (Richard) Mac Donald
Member
Mr Mac Donald graduated in Food Sciences from the Higher Agricultural
Institute in Wageningen and is currently director of the Medical Sciences
Institute of the University of Suriname.He has extensive experience in
business and was for many years managing director of Varossieau N.V. He is
a member of the State Council of Suriname and the Supervisory Board of
Jetzza International N.V.

| 66 |
G. (Ghamie) Lie Sem-Nawikromo
Member
Mrs Lie Sem-Nawikromo’s educational background is in government
accounting, with additional training in financial management and
marketing. She is a deputy head at the Ministry of Social Affairs (AMZ), has
worked in various government accounting positions and has been head of
the General Retirement Provision Fund. Ancillary position: ICT trainer
H.R. (Harold) Ramdhani
Member
Mr Ramdhani has a Master’s degree in Business and is the director/owner of
RAMSHOLDING. He is a member of the State Council of Suriname, chairman
and deputy director of Stichting Experimentele Landbouwbedrijven
Prins Bernhard Polder (seed crops) and Baboenhol and Tibiti (live stock), as
well as being a member of the National Air Transport Negotiating and
Advisory Board.
Drs. M.M. (Milton) Sandvliet M.Sc.
Member
Mr Sandvliet graduated in Economics from Anton de Kom University and
has a Master’s degree in International Business from the University of the
West Indies. He is Head of Economic and Administrative Services at the
Civil Aviation Safety Authority of Suriname, has been a director of STPO
and has been a senior civil servant focusing on international economic
relations at the Ministry of Trade and Industry.
Drs. J. J.F. (Johan) Tjang-A-Sjin
Member
Mr Tjang-A-Sjin graduated in Finance from the Erasmus University in
Rotterdam in 1971.He is a director of N.V.Comfish and for many years was
also a member of the executive board of Fernandes Concern Beheer N.V.
He is deputy chairman of N.V. Self Reliance Assurantie Maatschappij, a
member of the IFONS Supervisory Committee and a business development
consultant.

| 67 |
Executive Board
Drs. J.D. (Jim) Bousaid
Chief Executive Officer
Jim Bousaid studied Economics at the Erasmus University in Rotterdam,
where he specialised in Money, Credit and Banking and also in Public
Finances. Since joining Hakrinbank in 1984 he has worked in various
commercial and financial management positions and was appointed CEO
on 1 August 2002. From March 2005 – March 2007 Mr Bousaid was chairman
of the Surinamese Bankers Association and is also on the Board of
Directors of the Caribbean Association of Indigenous Banks. He is also
Honorary Consul of the Republic of Turkey in Suriname.
Mr. M.M. (Mariëtte) Tjon A Ten
Chief Operations Officer
Mariette Tjon A Ten graduated in Law from the University of Leiden in 1977.
She joined Hakrinbank in May 1981 and has since worked in various positions
for the bank and its subsidiary NTFM. She was appointed to the
Executive Board on 1 August 2002. Since March 2007 she has been the secretary
of the Surinamese Bankers Association.
Drs. G.M. (Gerard) Raghoenathsingh MBA
Chief Financial Officer
Gerard Raghoenathsingh graduated in Finance and also has a Master’s
degree in Business Administration from the Maastricht School of
Management, where he specialised in Corporate Strategy and Economic
Policy. He has worked for Hakrinbank since 1991 in various different roles.
He was appointed to the position of Assistant Managing Director Commercial
on 1 August 2001 and on 1 July 2008 he was appointed as financial director
of the Executive Board. Since June 2006 he has been secretary of the
Surinamese Association for Securities Trading.
H. S.K.G. (Harold) Liu Hung Chung
Assistant Managing Director Operations
Harold Liu Hung Chung has an educational background in accounting and
ICT. He has worked for Hakrinbank since 1969 in a wide range of positions.
He was appointed to the position of Assistant Managing Director
Operations on 1 August 2001.

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ADDRESSES
HEAD OFFICE
Dr. Sophie Redmondstraat 11-13
Tel.: (597) 477722
Fax: (597) 472066 - (597) 475073
P.O.Box 1813 Paramaribo
E-mail:
clientenservice@hakrinbank.com
executiveboard@hakrinbank.com
internetbanking@hakrinbank.com
Website: www.hakrinbank.com
Swiftcode: HAKRSRPA
Credits Department (597) 477722 ext 309
Treasury & Securities Department (597) 477722 ext 298
Foreign Transfers Department (597) 477722 ext 290
PR & Marketing Department (597) 477722 ext 478
BRANCHES
Nieuwe Haven
Havencomplex
Tel.: (597) 477722 ext. 435
Tel./Fax: (597) 402466
Tourtonne
Hk. Anamoestraat/Plutostraat
Tel.: (597) 477722 ext. 804
Fax: (597) 551362
Latour
Hk. Indira Gandhiweg/Latourweg 10
Tel.: (597) 477722 ext. 415
Tel./Fax: (597) 481856
Flora
Mr. Jagernath Lachmonstraat 164
Tel.: (597) 477722 ext. 701
Fax: (597) 499357
Tamanredjo
Hadji Iding Soemitaweg 471
Tel.: (597) 0356446
Fax: (597) 0356447
Nickerie
G.G. Maynardstraat 49
Tel.: (597) 0231176,
0231711, 0231750, 0210182
Fax: (597) 0231931
SUBSIDIARY
Nationale Trust- en Financierings Maatschappij N.V. (NTFM)
Dr. Sophie Redmondstraat 11-13
Tel.: (597) 410000
Fax: (597) 479874
E-mail: ntfm@hakrinbank.com

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SURINAME: Key macro-economic figures
2008* 2007 2006 2005 2004
Production
Nominal GDP market prices, incl. informal sector
(mln. SRD) 6,400 5,981 5,675 5,430 5,225
Real growth in GDP (%) 6.8 5.4 4.5 4.0 8.0
Oil production (millions of barrels) 5.9 5.4 4.8 4.4 4.1
Alumina (1000 m. tons) 2,154 2,178 2,133 1,940 2,014
Gold (kg) 24,000 22,660 21,960 21,700 21,586
Rice production (m. tons) 182,877 179,012 182,659 163,955 174,490
Inflation (%)
Consumer price index (average) 14.7 6.4 11.3 9.5 9.1
Consumer price index (year-end) 9.4 8.3 4.7 15.8 9.1
Balance of payments (cash)
Export of goods (x USD millions) 1,689.2 1,317.2 1,138.4 800.9 721.4
Import of goods (x USD millions) 1,537.6 1,125.1 906.1 873.7 604.4
Current account (x USD millions) 124.6 213.2 181.7 -242.0 -61.9
Balance of non-monetary sectors (x USD millions) 44.4 158.1 89.0 16.8 37.2
Monetary reserve (x USD millions) 501.5 435.9 261.2 162.1 142.2
Import coverage (months) 3.8 3.6 2.8 1.7 1.5
Exchange rate
Average official exchange rate (USD) 2.78 2.78 2.78 2.77 2.76
Average market exchange rate (USD) 2.82 2.80 2.80 2.80 2.72
Government debt
Domestic government debt (x SRD millions) 628.0 579.8 650.8 694.4 539.2
Foreign government debt (x USD millions) 315.4 298.7 391.1 390.3 384.2
Monetary and financial sector
M1 money supply (x SRD millions) 1,363.0 1,177.9 941.3 772.9 697.5
M2 money supply (x SRD millions) 1,569.8 1,360.3 1,082.0 880.2 785.7
Domestic liquidity (%) 21.0 20.4 18.9 18.5 20.3
Weighted average nominal deposit rate (SRD %) 6.4 6.3 6.6 6.7 8.1
Weighted average nominal lending rate (SRD %) 12.0 12.9 15.3 16.3 19.1
Government finances
Receipts on ordinary account (x SRD millions) 2,111.1 1,828.2 1,580.3 1,286.5 1,087.8
Expenditure on ordinary account (x SRD millions) 1,742.8 1,656.8 1,330.4 1,247.6 1,160.0
Financing surplus/(deficit) (mln. SRD) 145.9 238.6 49.2 -98.2 -72.2
Financing surplus/(deficit) (% of GDP) 2.0 3.5 1.0 -2.0 -1.9
Sources: National Planning Office of Suriname, Central Bank of Suriname, Ministry of Finance, Ministry of Agriculture, Animal Husbandry, Government Debt Management Office,
General Office of Statistics, International Monetary Fund and own estimates.
*) Provisional figures

Design/layout:
Photo’s:
Captions:
I.D. Graphics
cover, pg. 1-3, 7, 9, 11, 14, 22, 28, 34, 47, 48, 65-67 - Claudett de Bruin;
14 - collection Hedi Infra; 26 - collection Rijstpak N.V.;
39 - Shutterstock;
42 -Ingrid Moesan; 45 - Ranu Abelakh.
Marketing Department Hakrinbank N.V., Claudett de Bruin,