LatinNews Daily - 22 December 2023

*The International Monetary Fund (IMF)’s executive board has announced that it has concluded the fifth review under the Extended Fund Facility (EFF) for Costa Rica, allowing for a disbursement equivalent to about US$276m. It also announced the conclusion of the second review under Costa Rica’s Resilience and Sustainability Facility (RSF) arrangement, making available about US$495m in support of Costa Rica’s climate change agenda. According to an IMF statement, Costa Rica’s three-year extended arrangement under the EFF was approved on 1 March 2021 for some US$1.8bn and extended by five months on 5 March 2022. Costa Rica’s RSF arrangement was approved on 14 November 2022, for some US$725m. Its duration coincides with the period remaining under the EFF – disbursements under the RSF being contingent on the conclusion of relevant reviews under the EFF and implementation of scheduled reform measures. According to the IMF the Costa Rican legislature’s ratification of the RSF, which occurred on 17 October 2023, will enable the authorities to request disbursements made available by completion of assessments. The IMF forecasts Costa Rica’s real GDP growth will reach around 5% this year, supported by buoyant exports and recovering domestic demand. Growth is expected to moderate to 3.5% in 2024. In its statement the Fund also highlights that Costa Rica is reaping the benefits from "the home-grown reform programme" - a reference to the tax reform approved under the previous government led by President Carlos Alvarado (2018-2022).