LatinNews Daily - 3 June 2025

*The International Monetary Fund (IMF)’s executive board has approved a new US$1.5bn two-year arrangement for Costa Rica under its Flexible Credit Line (FCL) arrangement. According to an IMF statement, Costa Rica qualifies for the FCL “by virtue of its very strong economic fundamentals and institutional policy frameworks, its track record of implementing very strong policies, and commitment to maintaining such policies in the future”. The Fund notes that the arrangement will “enhance Costa Rica’s external buffers and provide insurance against external downside risks”. Last month, following the conclusion of an Article IV mission to Costa Rica, the IMF issued a statement highlighting Costa Rica’s “remarkable economic progress” which it attributed to its “very strong fundamentals, policies, and policy frameworks”. According to that statement, Costa Rica’s GDP growth has averaged over 5% per year since 2021, while inflation is rising towards the central bank (BCR)’s 3% target, which the IMF expects to be reached in 2026, public debt has dropped steadily to less than 60% of GDP, international reserves are “at comfortable levels”, and “systemic financial stability risks are contained”. In its most recent statement, the IMF notes that Costa Rica has maintained a close relationship with the Fund through “surveillance, capacity development, and lending”. It highlights that Costa Rican authorities sought IMF support through the Rapid Financing Instrument in April 2020, an Extended Fund Facility (EFF) arrangement, which was approved on 1 March 2021 and completed on 14 June 2024, and a Resilience and Sustainability Facility (RSF) arrangement, which was approved on 14 November 2022 and completed on 14 June 2024.

End of preview - This article contains approximately 265 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial