The International Monetary Fund (IMF) on Monday announced the approval of $ 1.77 billion in aid to Costa Rica with an immediate release of $ 296.5 million to help the Central American country stabilize its economy.
Read also: Covid-19: the South African variant detected in Costa Rica on a French tourist
This assistance is granted within the framework of the extended credit mechanism (MEDC) of the IMF, indicated the institution of Washington in a press release, specifying that it was about a program extending over 36 months.
The IMF emphasizes that this program comes after emergency aid that occurred in April 2020 in the amount of 521.7 million.
He notes that while Costa Rica has made great strides in structural and budgetary reforms, the Covid-19 pandemic has severely affected its economy,
"exacerbating pre-existing vulnerabilities, undermining the expected results of the ambitious reform launched at the end of 2018 "
.
Budget reforms expected
Despite a recovery expected this year, with growth of 2.6%,
"the risks for the future remain high due to the uncertainty linked to the pandemic"
, adds the Fund.
The political efforts of the authorities under the program will be based on three pillars, he further indicated.
The country must gradually implement fiscal reforms to ensure debt sustainability,
"while protecting the most vulnerable"
.
It must focus on maintaining monetary and financial stability,
"while continuing to strengthen the operational autonomy and governance of the central bank and addressing structural financial vulnerabilities"
.
He also pledged
"to advance the main structural reforms to promote inclusive, green and sustainable growth"
.