Sunday, 20 September 2020

IMF disbursed US$521.7 million to Costa Rica

Resources correspond to the quick credit approved by the Legislative Assembly, on August 27

(QCOSTARICA) The International Monetary Fund (IMF) disbursed us$521.7 million Costa Rica, this September 15, of the fast loan approved by the Legislative Assembly on August 27.

Ministerio de Hacienda (Ministry of Finance) central offices in downtown San Jose

The Government will use 90% of these resources to exchange external debt for internal debt, and the remaining 10% will be transferred to the Caja Costarricense de Seguro Social (CCSS) as payment of the debt that the Central Government has with the institution.

The credit was requested from the IMF by the Government in March, at the beginning of the pandemic, to cover an “urgent need for a balance of payments”. The IMF approved it in April through a Rapid Financing Instrument (IFR) on soft terms, at an annual interest of 1.55%, on a five year note, with quarterly payments starting at 39 months after the disbursement has been made.

- paying the bills -

The Ministry of Finance estimates that the country would save US$100 million in interest with this loan, compared to obtaining the resources in the local market at a rate of 7.5% per year.

Now, the Government is preparing to begin negotiations with the IMF for a new loan, for US$2.25 billion dollars, but for the medium term and that requires structural reforms on the part of the government, which includes new taxes. The details of the IMF loan are expected Thursday, September 17.

As explained by the Minister of Finance, Elian Villegas, either on September 28 or October 5, they would begin talks with the IMF for the new loan.

 

- paying the bills -
- paying the bills -
Q Costa Rica
Q Costa Rica
Reports by QCR staff

Related Articles

This is how the tax on ATM transactions would work

(QCOSTARICA) Costa Rica president Carlos Alvarado on Thursday outlined the proposed...

Costa Rica at the gates of a tax on banking transactions

(QCOSTARICA) The economic stability proposal that the Government will present to...

MOST READ

Father of Minister of Health Dies

(QCOSTARICA) The father of the Minister of Health, Daniel Salas, died this Wednesday and confirmed to the press 7:55 am. “We confirm the unfortunate death...

16-year-old girl convicted of participating in homicide of Uber driver

(QCOSTARICA) A 16-year-old girl was sentenced to 13 years in prison for participating in the murder of an Uber driver and in the robbery...

COVID-19 Costa Rica: 1,320 new cases and 17 deaths for Thursday, Sept 17

(QCOSTARICA) Priscilla Herrera, medical manager of Health, reported for this Thursday, September 17, 1,302 new cases of COVID-19, of which 281 are by epidemiological...

Why are the number of recovered not keeping pace with new cases?

(QCOSTARICA) If we look at the numbers, we see the number of new cases daily over the 1,000 mark. And when they do, they...

U.S. recommends avoiding travel to Costa Rica due to high risk of covid-19

(QCOSTARICA) The United States Center for Disease Control (CDC) advises Americans not to travel to Costa Rica unless it is "essential travel." This, due...

The death of Dr. Salas’ father comes at a difficult time

RICO'S DIGEST -  I have no doubt that this is a moment of great weight for the majority in Costa Rica who identify with...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.