No menu items!


HomeCosta RicaCosta Rica Receives IMF Approval for $500 Million After Economic Reforms

Costa Rica Receives IMF Approval for $500 Million After Economic Reforms

The IMF executive board allowed for the disbursement over $500 million to Costa Rica on Friday after a successful review of the Central American country’s reform programs, the organization said in a statement.

The approval of the economic reform program within the framework of the Extended Fund Facility (EFF) arrangement makes it possible to transfer approximately $272 million, bringing the total to $1.6 billion.

Another $243 million will come from the approval of the third review of the Resilience and Sustainability Facility (RSF) arrangement, the IMF said. The total under this agreement is about $730 million.

“Costa Rica is the first country to complete an RSF arrangement,” which was launched to support poor or vulnerable countries in the face of long-term difficulties caused by global warming, according to the IMF.

“The completion of the reviews marks the successful conclusion of an ambitious, multi-year, multi-dimensional reform program… that is helping reshape Costa Rica’s economy and advance the climate agenda,” Kenji Okamura, deputy managing director of the IMF said in a statement.

The IMF expects real GDP growth to be around 4 percent this year. “Growth has remained strong and inflation is rising to the lower end of the central bank’s tolerance range,” Okamura said. “Formal employment, private-sector wages and poverty are all moving in the right direction.”

Okamura recommended avoiding “legislative changes that erode revenue,” adding that “the coverage of the fiscal rule should be maintained.”

Weekly Recap

Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait

Latest Articles