No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaWorld Bank Approves Loan to Support Costa Rica's Recovery

World Bank Approves Loan to Support Costa Rica’s Recovery

The World Bank has officially announced its support for Costa Rica’s post-pandemic recovery efforts by approving a loan. The main objective of this program is to aid in improving family incomes, strengthening small and medium-sized enterprises (SMEs), and fostering the growth of the green economy. Nogui Acosta, the Minister of Finance, emphasized the significance of this support for the country and highlighted the World Bank’s trust in the government.

Minister Acosta stated, “This new budget support loan demonstrates the World Bank’s confidence in the government’s commitment to inclusive and sustainable economic growth. The Costa Rican economy is emerging from the severe impact of the pandemic. However, adverse external conditions have presented us with new challenges that we must address in terms of economic reactivation and fiscal consolidation.”

The World Bank has outlined three key pillars that will be reinforced through this loan to facilitate economic growth. Firstly, it aims to safeguard jobs and incomes from the impact of COVID-19 and facilitate the recovery of small and medium-sized businesses. This will involve implementing a combination of international shock response measures and reforms to enhance the efficiency and resilience of social protection.

The loan will also contribute to improving public finances by enhancing tax collection, streamlining government spending, and enabling better management of public debt. Additionally, it seeks to promote green growth and low-carbon development, emphasizing the adoption of clean technologies and the creation of a resilient, equitable, and climate-smart economy.

While acknowledging Costa Rica’s progress in environmental, economic, and social spheres, Carine Clert, the World Bank country manager for El Salvador and Costa Rica, highlighted the ongoing challenge of reducing poverty and inequality in the country.

The $500 million loan provided by the World Bank has a final maturity period of 19.5 years, including a four-year grace period, and is based on the SOFR interest rate. Carine Clert concluded, “With this operation, we seek to underpin the Government of Costa Rica’s efforts to progress towards fiscal consolidation and investment in more ecological production systems, as well as helping to strengthen basic protective measures for the most vulnerable population, especially women.”

The World Bank’s support through this loan is expected to play a vital role in Costa Rica’s journey towards economic recovery, fiscal stability, and sustainable development while addressing the challenges posed by the pandemic and external factors.

Trending Now

Costa Rica Food Culture: From Bar Bocas to Fast Food Chains

Once upon a time in Costa Rica, you could walk into a bar, order a beer, and receive a free boca – a small...

Nicaragua Places Bayardo Arce Under House Arrest Amid Power Struggle

The Nicaraguan government has placed historic Sandinista commander Bayardo Arce, economic adviser to President Daniel Ortega, under house arrest, according to exiled opposition members...

Chiquita Executives Convicted in Colombia for Financing Death Squads

Colombian justice on Wednesday sentenced seven former executives of the multinational banana company Chiquita Brands to more than 11 years in prison and a...

Venezuelan Migrants Describe Hellish Stay in El Salvador Jail

Mervin Yamarte left Venezuela with his younger brother, hoping for a better life. But after a perilous jungle march, US detention, and long months in...

Costa Rica Embraces IHRA to Combat Antisemitism in Region

Costa Rica has formally adopted the International Holocaust Remembrance Alliance's (IHRA) working definition of antisemitism. This step positions the country as the sixth in...

Costa Rica Surpasses 500 Homicides as Gang Violence Escalates

Costa Rica has officially surpassed 500 homicides so far this year, according to figures released Monday by the Judicial Investigation Agency (OIJ). As of...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica