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RegisterThe discount rate, i.e. the rate at which the Central Bank of Suriname lends to the commercial banks and government. The rate has little association with the domestic interest rates and was an inactive instrument throughout most of the time, given that the commercial banks did not need to borrow from the central bank. The rate mostly applies to the government. According to the Bank Act 1956, the central bank has the obligation to provide the government with short-term financing up to 10 percent of the budgeted revenues for a specific fiscal year. The cental bank is permitted to grant only collateralized loans.