Agreement with Costa Rica on a Resilience and Sustainability Facility

By IDEAS

An International Monetary Fund (IMF) team and Costa Rican authorities reached staff-level agreement on a request for access under the newly established Resilience and Sustainability Trust (approximately $ 710 million). The IMF’s Executive Board will consider these requests in the coming weeks.

Costa Rica is one of the first countries to request financing from the IMF’s newly established Resilience and Sustainability Facility to support its pioneering and ambitious agenda to build climate resilience and transition to a zero-carbon economy, while helping catalyze climate financing from other official and private partners.

The authorities are taking important steps to strengthen Costa Rica’s economic reform program. Monetary policy and exchange rate flexibility need to continue to proactively respond to the shocks facing the economy. Fiscal consolidation should advance, while making space for targeted support to the most vulnerable.

A more progressive tax system, strengthened social protection, incentives to greater formality and female economic empowerment will all help create a solid foundation for more inclusive growth.