Costa Rica: $500 Million to Finance Public Spending

The Inter-American Development Bank approved two lines of credit totaling $500 million, resources that will be used by the Government to finance the public budget and policy reforms to ensure fiscal sustainability and maintain macroeconomic stability.

Thursday, May 6, 2021

One of the approved lines incorporates contingency measures to increase spending related to the health emergency and targeted support to households and businesses affected by the crisis, informed the Inter-American Development Bank (IDB).

Check out the "System for monitoring markets and the economic situation in Central American countries", prepared by CentralAmericaData.

According to the IDB, it also contemplates a structural increase in spending on social programs that benefit the most vulnerable populations, in order to reduce poverty and inequality and protect public investment in productive infrastructure.

The official statement notes that "... the second operation supports structural reforms to improve the effectiveness of the macro-fiscal institutional framework, increase the efficiency and progressiveness of the tax system, and improve efficiency and equity in the management of public spending. Together, these measures will help strengthen public finances and support a robust economic recovery in the post-pandemic period."

The two loans approved by the IDB have an amount of $250 million each and an interest rate based on LIBOR. The first loan, which complements the country's economic program agreed with the International Monetary Fund, has an amortization term of 7 years and a grace period of 3 years. The second, under the Programmatic Loan to Support Policy Reforms modality, has a 20-year repayment term and a grace period of 5.5 years, explained the international organization.

Do you know that we are now part of something bigger?
Learn about PREDIK Data-Driven, our new global brand.



More on this topic

Costa Rica: More Debt to Control Spending?

July 2019

Costa Rica "will strengthen its fiscal sustainability by controlling expenditure and modernizing the tax system with a $350 million loan approved by the Inter-American Development Bank (IDB)."

During the controversy generated by the implementation of the fiscal reform in Costa Rica, the approval of a $350 million credit was announced to "support the country in the implementation of its fiscal reform program."

El Salvador: $200 Million to Finance Public Budget

June 2019

The IDB loan will be used to finance the payment of pensions in general and of the Armed Forces, subsidize electricity, and increase salary scales for police officers and teachers.

The $200 million loan from the Inter-American Development Bank (IDB) has an amortization period of 20 years, a grace period of five and a half years, and an interest rate based on LIBOR, according to the international organization.

Loans For Bureaucrats By Bureaucrats

September 2012

The IADB loan to Guatemala for the purpose of "generating more tax revenue" is another example of the current inflation of funding promoted by international bureaucracy to pay the salaries of national bureaucracies.

EDITORIAL

An article by Jose Raul Gonzales in the blog of Guatemala's economic think tank CIEN, reveals one of the many cases in which international financial organizations, supposedly created to help nations develop, engage in financing consulting activities, which end up being just expenses instead of financing real economic sectors.

Nicaragua will improve tax collection and improve social spending with IDB assistance

December 2009

A $40.5 million loan will prevent deterioration of fiscal situation due to the global recession.

The Inter-American Development Bank approved a $40.5 million loan to that will provide budget support for Nicaragua and help finance measures that will increase revenue collection and efficiency and transparency of budget execution.

 close (x)

Receive more news about Debt Market

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Beverage magazine for Sale

Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market.
It serves soft drink bottlers, brewers, bottled water...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Sep 20)
Brent Crude Oil
73.390
Coffee "C"
182.35
Gold
1,763
Silver
22.162