Awful Precedent for Payment Culture

Costa Rican legislators condoned the debt a group of farmers had with the State without much justification.

Thursday, August 27, 2009

In the Costa Rican Congress, a wide majority of representatives approved debt condonation for a group of farmers who benefit from highly subsidized credit programs, basing their decision on "social solidarity" grounds.

The editorial by points out the lack of technical foundations on the Legislative's decision, by asking: "Which is the objective criteria, technical basis, cost-benefit considerations, effect weighting, situational analysis for each farmer, verification of their real needs and the general public spending priority scheme on which this gift is justified? The answer is simple: none".

More on this topic

Bailout for Appliance Chain

March 2017

In Costa Rica an agreement between Casa Blanca and its creditors will allow the company to continue operating, with new financial conditions for paying back the $62 million owed.

The agreement which may have been reached by the appliance chain Casa Blanca and banks and suppliers who are owed $61.5 million establishes a two - year grace period and up to 15 years to repay all of the liabilities. In addition, the company owners are required to put their shares into a trust and restructure the organization.

Appliance Chain Renegotiates Debt

January 2017

Due to liquidity problems, in Costa Rica the chain store Casa Blanca has started a legal process in order to reach an agreement regarding payments to its creditors.

Increasing competition in the market of home appliances and white goods could be one of the reasons behind the difficulties facing the White House chain, and that led to its request to organize a payment agreement with its creditors.

Waive Interest Payments for ALL Tourism SMEs

May 2015

A law will bring benefits for a few, paid by all, discriminating against other companies in the sector, a situation which is inequitable and distorts the rules of the market and free competition.


In Costa Rica a bill to help tourism businesses affected by the 2008 crisis would forgive the interest on their debts with state banks, which, if approved, would be totally unfair for companies who have managed their situation better, getting over the crisis and are now up to date with their loan payments.

Costa Rica Tourism Seeks Debt Restructure

September 2014

A proposal has been made to create a program within the Banking Development System to allow tourism enterprises to readjust their debts with banks.

If the bill introduced in Congress thrives, a group composed of representatives from the Costa Rican Institute of Tourism, the Banking Development System and the Ministry of Planning (Mideplan) would analyze each case and determine which companies could opt for restructuring.

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