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

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.

Tuesday, March 24, 2020

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.

See "Coronavirus: How Will It Affect Business?"

Nacion.com reviews that "... The line of credit will also be used to support the Costa Rican Social Security Fund (CCSS) in the purchase of supplies and equipment to assist those who contract the new coronavirus."

The article adds that "... The file, which has already been transferred to the Executive Branch to be signed by President Carlos Alvarado, establishes that the Ministry of Finance must present extraordinary budgets clearly indicating how the money will be used."

Coronavirus: How do the outlook for companies in Costa Rica change?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.



More on this topic

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

July 2020

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.

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.

$515 Million Approved for Healthcare System

April 2020

The IMF approved a loan in favor of the Panamanian government, whose funds will be used to finance health expenses and support the vulnerable population affected by the covid.19

The International Monetary Fund (IMF) approved Panama's request for emergency financial assistance under the Rapid Financing Facility (RFF) of approximately $515 million to meet urgent balance of payments needs arising from the outbreak of the covid-19 pandemic, the international body reported.

El Salvador to Issue $2 Billion in Debt

March 2020

In order to face the health crisis, the Assembly authorized the issuance of securities for up to $2 billion, which will be issued in the national or international market.

According to the motion, 70% of the funds obtained will be used, as a priority, to attend to the health emergency and may be allocated to the fund for direct monetary transfers to economically vulnerable households, to cover the income shortfalls in the current budget, generated by covid-19 and to incorporate the resources into the General State Budget 2020, informed the Legislative Assembly.

Costa Rican Government Keeps Going into Debt

April 2019

The Andean Development Corporation approved a $500 million loan to the government of Costa Rica, which will be used to "achieve fiscal sustainability in the short and medium term.”

The Andean Development Corporation (CAF) reported that these resources will be used to obtain the benefits generated by the implementation of the Law to Strengthen Public Finances and Costa Rica's access to international markets.

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