*The International Monetary Fund (IMF) executive board has concluded the third review under the Extended Fund Facility (EFF) for Costa Rica, allowing for an immediate disbursement equivalent to about US$270m. This brings total disbursements under the US$1.78bn EFF, which was agreed in March 2021 under the previous government led by former president
Carlos Alvarado (2018-2022), to US$810m. The IMF states that Costa Rican authorities are taking important steps to “
strengthen their economic reform programme. Monetary policy needs to continue to proactively respond to shocks. Fiscal consolidation should advance, while strengthening social protection and fostering a more equitable economy.” The IMF is forecasting that Costa Rica’s GDP will expand 4.3% in 2022, down from 7.8% in 2021 while central government debt is forecast to come in at 67.2% of GDP in 2022, down from 68.2% in 2021. Foreign debt is forecast to reach 54.6% in 2022, up from 51.3% in 2021. The IMF announced that its executive board had also approved the first arrangement under the newly established Resilience and Sustainability Facility (RSF) for about US$725m to support Costa Rica’s climate change agenda and catalyse further financing. Costa Rica is the first country to access the RSF.
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