Costa Rica: $300 Million More Debt to Face the Crisis

The Central American Bank for Economic Integration approved a line of credit for the country to reinforce its fiscal sustainability and strengthen its macroeconomic stability, in the context of the economic crisis that arose from the outbreak of covid-19.

Friday, July 24, 2020

In this way, Costa Rica becomes the first nation to receive the maximum amount of $250 million per year available for each country under the Development Policy Operations Program (DPO), reported the international organization.

The statement from the Central American Bank for Economic Integration (CABEI) also explains that it is receiving an additional $50 million to attend to the emergency caused by the pandemic within the framework of the Bank's Regional Program for Support and Preparation for Covid-19 and Economic Reactivation.

Elian Villegas, Minister of Finance of Costa Rica, said that "... in the midst of this pandemic that is also attacking the financial health of Costa Rica, the CABEI credit comes to allow us to maintain the domestic market without excessive pressure, so that the savings of Costa Ricans support the effort of economic recovery that must go hand in hand between the Government and private enterprise, so this is a way to collaborate in this national effort, which is imperative at this time for the country."

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Debt Market: Plans in Costa Rica

March 2021

In addition to the $1,750 million that the government is seeking to obtain through the loan it is negotiating with the IMF, during the four years between 2022 and 2025 the country plans to place $4,000 million in foreign debt bonds.

Currently, the Assembly is discussing the loan file requested to the International Monetary Fund (IMF), which amounts to $1,750 million that will be used to mitigate the fiscal impact caused by the economic crisis resulting from the outbreak of covid-19.

Panama: $250 Million to Face Economic Crisis

November 2020

In the context of the economic crisis generated by the covid-19 outbreak, the CABEI approved a line of credit that the Panamanian government will use to finance the general state budget and programs for health protection, education and food security.

The Central American Bank for Economic Integration (CABEI) approved $250 million as part of the Development Policy Operations Program (DPO) to the Republic of Panama to financially support the country's economic recovery, the financial agency reported.

Public Finances: What is Expected in 2021

October 2020

After the Alvarado administration agreed to backtrack on the proposal to negotiate a $1.75 billion loan with the IMF, it is predicted that next year the government will depend on domestic debt to finance its expenditures.

In mid-September, and in the context of a severe economic crisis that had been brewing before the pandemic, the Executive presented the plan with which it intended to mitigate the fiscal impact of the Covid-19 crisis, a proposal to negotiate an agreement with the International Monetary Fund (IMF) to obtain a $1.75 billion loan.

Costa Rica: $500 Million to Address Covid-19 Crisis

March 2020

The Costa Rican Assembly approved in second debate a credit with the Latin American Development Bank, which will be used to assist people who lose their jobs, as well as employers and independent workers.

The funds from the $500 million loan from the Andean Development Cooperation, which was originally planned to be used for debt repayment, will be used to finance the Costa Rican government's response to the national emergency caused by the Covid-19 virus, the Legislative Assembly reported.

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