Tuesday 20 April 2021

IMF sets its clear requirements for Costa Rica

The Public Employment Law ready before June and tax compliance improvement plan at the end of December, are some requesistes

QCOSTARICA – The International Monetary Fund (IMF) finally said yes to the loan for almost US$1.78 billion and to the fiscal adjustment commitment proposed by Costa Rica.

Costa Rica has been prescribed the IMF pills as a condition of the almost US$1.78 billion dollar loan. Shutterstock

This step puts the country on the IMF’s radar to ensure that it complies with what has been agreed to.

- Advertisement -

After the approval, the IMF reiterated that there are multiple aspects that must be fulfilled, in case of advancing in the Legislative Assembly.

For example, there will be five semi-annual reviews of the arrangement by the Fund to assess progress in the implementation of the program and reach understandings of any additional measures that may be necessary to achieve its objective.

There are goals of a more political nature based on the Carlos Alvarado government’s letter of intent, called Structural Benchmarks or Structural Milestones.

These include the approval of the Public Employment Law, no later than the end of May this year.

- Advertisement -

The fight against tax evasion is also included, because a new Tax Compliance Improvement Plan must be approved by the end of December 2021, with compliance strategies supported by more cross-comparison of large-scale automated information to detect inaccurate reports; as well as renewed audit programs focused on the Value Added Tax (VAT) on services and the erosion of tax bases through cross-border transactions.

Others refer to numbers, separated in quantitative performance criteria (QPCs), which are specific and measurable conditions that are related to macroeconomic variables under the control of the authorities; as well as Indicative targets (ITs) that are less specific in indicators where there is greater uncertainty, and as the uncertainty is reduced, these objectives can be converted into QPCs.

For example, a performance criterion on new arrears in external payments by non-financial entities of the public sector and the Central Bank, which must remain at 0.

Tasks and deadlines to be fulfilled by Costa Rica

  • Approval of the Public Employment Law: May 2021
  • Improve BCCR law to strengthen its autonomy: August 2021
  • Approval of a tax compliance improvement plan: December 2021
  • Publication of 2020 financial statements under IFRS standards for ICE, AyA and CNP: December 2021
  • Centralize and digitize economic social assistance programs: December 2021
  • Publication of the fiscal framework for the entire non-financial public sector for 2023-2026: April 2022
  • Debt management strategy publication for 2023-2026: April 2022
  • Roadmap for improving climate resilient infrastructure, including assessment of costs and financing option: September 2022.


- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"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: “If we don’t give stability to the economy, everything will go to hell”

QCOSTARICA - "If we don't give stability to our economy, forgive...

S&P maintains Costa Rica’s rating but warns of a possible downgrade if loan with the IMF fails

QCOSTARICA - The risk rating agency Standard and Poor's (S&P) confirmed...


A Cuba Without a Castro? A Country Steps Into the Unknown.

Q REPORTS (NY Times) When Raúl Castro retired as Cuba’s top leader Monday, he left a warning for a nation increasingly divided over the...

ICE to start charging at fast-charging stations for electric cars

QCOSTARICA - The honeymoon of free charges at Instituto Costarricense de Electricidad (ICE) fast-charging stations is over for owners of electric car, as they...

New surveillance cameras seek to reduce assaults on the General Cañas

QCOSTARICA - The Municipality of Heredia will place four surveillance cameras on a section of the General Cañas highway that has registered an escalation...

3,157 new cases confirmed in 3 days!

RICO's COVID DIGEST - While for many bringing back the vehicle restriction measures on the weekends was a surprise, not here, I expected that...

Alejandra Guzmán: “I am a devastated mother, I have never experienced something so ugly”

Q MAGAZINE - Alejandra Guzmán assures that she is devastated with everything that has been said about the privacy of her family in recent...

Today’s coronavirus news: ICUs overloaded, occupancy for critically ill with covid-19 reaches 85%

QCOSTARICA - The number of patients with covid-19 is advancing by leaps and bounds. This Monday, 571 people were hospitalized, 263 in an Intensive...

CCSS has applied 587 thousand vaccines against COVID-19

QCOSTARICA -  The Caja Costarricense de Seguro Social (CCSS)  - Costa Rican Social Security Fund - registers the application of 586,799 vaccines against covid-19,...

KLM announces reactivation of flights to Costa Rica starting June 29

QCOSTARICA - KLM announced, this Monday, April 19, that it will reactivate its flights between the Netherlands and Costa Rica, starting on June 29. The...

Sexual activity in Colombia also took its toll due to the pandemic

QCOLOMBIA – Sexual activity in Colombia had negative effects as a result of the covid-19 pandemic. This was demonstrated by the results of the...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

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.