LatinNews Daily - 05 October 2022

In brief: Costa Rica and IMF announce deal on new sustainability loan

*Costa Rica’s government led by President Rodrigo Chaves and the International Monetary Fund (IMF) have announced a staff-level agreement on a US$710m resilience and sustainability facility (RSF) as well as an agreement on the third review under the extended fund facility (EFF) which was agreed under the previous government for US$1.78bn, which would make available a further US$264m. Both require approval by the IMF executive board. According to an IMF press release, Costa Rica is one of the first countries to request financing from its newly established RSF to support its agenda to build climate resilience and transition to a zero-carbon economy, while helping catalyse climate financing from other official and private partners. The IMF also highlights that the authorities are taking important steps to strengthen Costa Rica’s economic reform programme. It notes that: “After rebounding strongly in 2021, real GDP is projected to slow to 4.4% in 2022, amid a slowdown in global growth and tighter financial conditions.” It adds that headline inflation is expected to have peaked in the third quarter and gradually return towards the central bank target by late 2024. The target for 2022 is 3% +/- 1. The IMF adds that “the fiscal targets under the programme were comfortably met, despite the disruptions created by the cyberattacks” which affected the country earlier this year.

End of preview - This article contains approximately 224 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.