LatinNews Daily - 01 September 2020

* The president of Costa Rica’s central bank (BCCR), Rodrigo Cubero, and Finance Minister Elian Villegas have sent a letter to the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, requesting the start of negotiations regarding a US$1.75bn three-year financial assistance programme. According to Cubero, the agreement would provide “a political anchor for [Costa Rica’s] plans of fiscal consolidation”, as it would permit better financing conditions in domestic and international markets, thereby reinforcing the path towards economic recovery in the medium term. The BCCR forecasts that Costa Rica’s GDP will contract by 5% in 2020 due to the impact of the coronavirus (Covid-19) pandemic; that the central government’s debt will reach 70% of GDP; and that the fiscal deficit will reach 9% of GDP. The request sent to the IMF follows the recent approval by Costa Rica’s national assembly of a US$504m emergency financial assistance loan from the IMF under its Rapid Financing Instrument (RFI), to support Covid-19 related health spending.

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