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LatinNews Daily - 25 March 2020

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In brief: Costa Rica approves CAF loan to address Covid-19 effects

* Costa Rica’s 57-member unicameral national legislature has approved a US$500m loan from the Latin American Development Bank (CAF). The government, led by President Carlos Alvarado, says that the loan, which has the main objective of supporting the country’s “financial sustainability”, will be an “important source” of funding to address the emergency caused by coronavirus (Covid-19). The government has previously announced a C1,000bn (US$1.78bn) protection plan (equivalent to 3% of the country’s GDP) aimed at supporting families and businesses affected by the impact of Covid-19. As well as the CAF loan, the protection plan is also to be funded by ‘solidarity contributions’ from luxury pensions (C12bn), and a C216bn loan from the Inter-American Development Bank (IDB)-French Development Agency (AFD), among other sources.