The International Monetary Fund (IMF) approved two reviews of agreements with Costa Rica on Monday, enabling the release of $521 million, as reported by the financial institution in a statement. The IMF’s executive board “concluded today the fourth review under the Extended Fund Facility (EFF) for Costa Rica, which makes possible a disbursement of about $275 million.”
This brings the total disbursements to around $1.1 billion. The financial institution also approved the first review of measures under the Resilience and Sustainability Service (RSS), launched to support poor or vulnerable countries facing long-term challenges caused by global warming. This allows for the availability of $246 million to support Costa Rica’s ambitious climate change agenda. The IMF recognizes the significant progress made by the Costa Rican authorities in their economic reform program.
The overall policy orientation should continue to focus on achieving a durable return of inflation to the target level and maintaining public debt on a firm downward trajectory while pursuing reforms for green, dynamic, and inclusive growth. Despite adverse global factors, the real GDP growth, projected at 3% this year, has been resilient, and inflation is on a firm downward trend, according to Kenji Okamura, IMF Deputy Managing Director and Acting Chair of the Executive Board.
Okamura also mentions the Public Employment Framework Law, which regulates labor relations between the state and public officials. While the implementation has taken longer than expected, recent progress marks a crucial milestone toward full implementation of the law.
The government has also introduced significant improvements to enhance the effectiveness of social programs, according to Okamura’s assessment.
