*The International Monetary Fund (IMF) has announced that it has reached a staff-level agreement with the Costa Rican authorities on policy measures for the completion of the first and second reviews of Costa Rica’s Fund-supported programme – a reference to the three-year US$1.76bn Extended Fund Facility (EFF) arrangement approved by Costa Rica’s congress last year. The statement follows a visit by an IMF mission which held virtual meetings with the Costa Rican authorities from 22 February-3 March. According to an IMF statement, Costa Rica’s authorities have “
made important progress under their programme, including with the approval of the public employment bill”, which
was approved on 7 March and would introduce a single pay scale and eliminate other salary components, to “
ensure fiscal sustainability, improve the equity and efficiency of the public administration, and strengthen social safety nets and tax compliance”. The IMF states that a “
proactive response” to the coronavirus (Covid-19) pandemic,
“including a vigorous vaccination campaign, and sustained export performance have supported a robust recovery in Costa Rica. Nonetheless, the threat of new COVID variants as well as higher global commodity prices and tighter global financial conditions, including from rising geo-political tensions, pose downside risks to Costa Rica’s economic outlook”.
End of preview - This article contains approximately 202 words.
Subscribers: Log in now to read the full article
Not a Subscriber?
Choose from one of the following options