This report outlines a scheme for providing housing subsidies in Surinam. The author was in Suriname as a consultant to the Inter-American Development Bank (IBD) during April 17-29, 1998. The report also builds upon previous studies of the housing finance system. The higher the level of interest rates, the larger the cost of housing subsidies. For reasons that will be explained in Section III, the cost impact of higher rates increases as borrower income increases. Using the subsidy arrangements proposed below, for example, an applicant with monthly income of $200 requires a subsidy about twice as large at 35% as at 12%. For an applicant with monthly income of $500 a month, the subsidy is over 6 times larger at 35%.The current mortgage rate is 35% but the banks are willing to make mortgage loans denominated in US dollars (with appropriate exchange rate guarantees by the central bank) at only 12%. Since the rate in the US is currently about 7%, the absolute maximum portion of the 35% guilder rate that can be attributed to cartelization and inefficiency is the spread between 12% and 7%, or 5%, and this assumes a zero cost of attracting dollars to Suriname. Assuming more realistically that it would take a rate premium of 1-2% to move dollars to Suriname, the spread due to cartelization and inefficiency shrinks to 3-4%, which is consistent with the magnitudes we see in other developing countries.