Foreign Debt at Historic Low

Costa Rica’s foreign debt has dropped to the historically low level of $81 million, down dramatically from the $1 billion the country owed a decade ago.

In addition, Central Bank president Francisco de Paula Gutiérrez noted to daily La República that the majority of the debt that remains has been switched over to colones, putting the Central Bank in a better position to address issues like inflation.

“We’re in a less vulnerable situation because the Central Bank has the ability to produce colones, not dollars,” he said.

This means the Central Bank is also in a better position to allow the value of the colón to float more, something Gutiérrez in the past has noted is one of the bank’s along-term goals.