Between May 2016 and May this year the primary deficit went from 0.9% of GDP to 1%, while the financial deficit increased from 1.9% to 2.1% in the same period.
From a statement issued by the Ministry of Finance:
The primary deficit and the fiscal deficit, which had been similar between 2016 and 2017, show a slight deterioration in May of this year which should draw the attention of all social sectors. The primary deficit went from 0.9% of GDP to 1% from May 2016 to May 2017; While the fiscal deficit went from 1.9% to 2.1% in the same period.
In line with warnings from other ratings agencies regarding the serious fiscal problem and the lack of political will to solve it, Moody's has downgraded its rating from Ba1 to Ba2 with a negative outlook.
New York, February 09, 2017 -- Moody's Investors Service has today downgraded Costa Rica's government bond rating by one notch to Ba2 from Ba1, and maintained the negative outlook on the rating.
The new charges of tax evasion against Aceros de Guatemala demonstrates how the cumbersome procedures for receiving tax returns foster dishonesty among officials and businessmen.
The Justice Department and the International Commission against Impunity in Guatemala have accused the company Aceros de Guatemala of committing tax fraud and customs fraud offenses, worth more than the $33 million, and which could be linked to the of customs fraud network dismantled a few months ago known as "The Line".
The European Bank for Reconstruction and Development has announced that due to a breach of international standards on exchange of tax information it will no longer grant loans to the country.
The International Finance Corporation (IFC) also announced the impossibility of lending to Costa Rican companies, pointing to the same reason as cited by the EBRD.
Food businesses in Costa Rica are calling for the elimination of treasury guidelines preventing them from applying tax credits on packaging material for their products.
A statement from the Costa Rican Chamber of Food Industry (CACIA) reads:
The Food industry considers it urgent that the Treasury reapply tax credits on product packaging
Government is exacerbating food price crisis
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