The Inter-American Development Bank (IDB) announced on Wednesday that it had approved two loans to Costa Rica totaling $ 500 million.
“Costa Rica will continue its structural budget reform program aimed at strengthening the efficiency and equity of budget management and promoting a sustainable economic recovery with two loans totaling $ 500 million approved by the Inter-American Development Bank,” he said. the Washington, DC-based financial agency reported. .
“The operations will provide budget support to the country and support political reforms to ensure fiscal sustainability and maintain macroeconomic stability in the short and medium term.”
One of two loans of $ 250 million will complement the country’s economic reforms that were part of Costa Rica’s agreement with the International Monetary Fund (IMF). It will also support “assistance to households and businesses affected by the Covid-19 crisis”.
The second operation “will help strengthen public finances and promote a solid economic recovery in the post-pandemic phase”.
The IDB did not specify the interest rate for either loan, but said it would be based on the London Interbank Offered Rate (LIBOR), an international benchmark. The first has a seven-year term after a three-year grace period; the second has a duration of 20 years after a grace period of 5.5 years.
Costa Rica’s total active portfolio with the IDB is $ 1.4 billion, much of which is dedicated to improving the transport sector.
“The government’s commitment to the health and stability of public finances and the objectives of the 2018-2050 national decarbonisation plan will be key elements for deepening the Bank’s actions within the framework of the pillars of this country strategy” , says the IDB.