Friday 19 August 2022

Carlos Alvarado asks the IMF for a 0% rate loan to face the economic crisis due to coronavirus

Paying the bills

Latest

Costa Rica ranks 31st in the list of the strongest passports in the world

QCOSTARICA - Costa Rica ranks 31st on the 2022...

Costa Ricans buy less due to the impact of inflation: They look for cheaper food

QCOSTARICA - A study by the firm Kantar revealed...

Frontier Airlines announces two direct flights connecting Costa Rica with Atlanta

QCOSTARICA - The low-cost airline, Frontier, announced two new...

Are professional athletes still as admired as they once were?

The history of sports around Latin America in general,...

The lifting of the state of emergency due to covid-19 is in effect

QCOSTARICA - As of Wednesday, August 17, 2022, the...

At least 13 promises announced by President Chaves must pass through the Legislative Assembly

QCOSTARICA - Ruling by 'decree' may not allow President...

Plan to legalize the use of recreational marijuana in Costa Rica in the works

QCOSTARICA - The government will present a bill to...

Dollar Exchange

¢651.76 Buy

¢659.97 Sell

19 August 2022 - At The Banks - BCCR

Paying the bills

Share

All this week, president Carlos Alvarado has been missing from the mid-day conference table. He’s been busy. Busy courting the International Monetary Fund (IMF) for long term financing to face the economic crisis of the coronavirus.

30,000 face protection masks were produced in Costa Rica in one week to protect the first line of defense against COVID-19. “Our talent is impressive and shows us that it is thanks to the joint effort that we will succeed,” Tweeted President Carlos Alvarado

“The IMF has proposed that COVID-19 measures should be extraordinary in order to protect people. For this, we propose that interest rates for budget support should be zero, fixed, and long-term. I call for support for this proposal, especially Mid Income developing countries,” posted President Alvarado on Twitter.

- Advertisement -

On Wednesday, the Government of Costa Rica began negotiations with the IMF in search of a loan called a “rapid financing instrument”, which has already been used by 14 countries to deal with the pandemic. The amount of financing would be about US$800 million dollars.

Assisting the President in talks with the FMI are Finance Minister, Rodrigo Chaves; Minister of Planning, Pilar Garrido; and Rodrigo Cubero, the president of the Central Bank.

Last weekend, Chaves told lawmakers: “Obviously there will be conditions because it is a program of the (Monetary) Fund and that will have to be discussed with you (the legislators) and with the public.”

In fact, the Legislative Assembly has already approved a loan of US$500 million with the Banco de Desarrollo de América Latina (CAF) – Latin America Development Bank.

This money was going to be used to improve public indebtedness, but the national emergency forced to change its purpose and allocate part of the CAF loan to attend to the people who have become unemployed by the health crisis, as well as aid to employers and independent workers whose businesses are affected.

Also, it will support the Costa Rican Social Security Fund (CCSS) to buy supplies and equipment for patient care of covid-19.

- Advertisement -

IMF approves Panama loan

Southern neighbor Panama had their deal approved with the IMF for US$515 million dollars.

“The International Monetary Fund approved a request for emergency financial aid by Panama for an approximate amount of $515 million dollars to meet the urgent needs of the balance of payments derived from the outbreak of the covid-19 pandemic,” the agency said in a statement.

“The (Panamanian) government has implemented measures to contain and mitigate the spread of the pandemic. However, significant uncertainties persist and the economic consequences could intensify if the containment measures are extended,” said Mitsuhiro Furusawa, deputy managing director of the IMF.

- Advertisement -

The details of the loan were not disclosed.

Panama, as of this Thursday afternoon, reported 3,751 positive cases and 103 deaths from the covid-19.

 

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Carlos Alvarado: Candidates and legislators have ‘electoral fear’

QCOSTARICA - Costa Rica president Carlos Alvarado attributed "electoral fear" and...

With 44 votes in favor, legislators approve IMF loan

QCOSTARICA - Legislators approved in a second debate, on Monday, July...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.