Costa Rica will receive a $250 million loan from the Inter-American Development Bank (IDB) to finance its efforts to contain the COVID-19 sanitary crisis and mitigate its impacts on the economy.
The budget-support, fast disbursement loan is in line with a rapid financial assistance (RFI) arrangement approved in April by the International Monetary Fund to help tackle the COVID-19 emergency and its effects on the country’s economy.
The funds will help the government to continue implementing a countercyclical fiscal policy during the crisis and preserve Costa Rica’s macroeconomic stability, thus contributing to alleviate the pandemic’s impact on business and vulnerable households. The program will also support government’s efforts to reduce fiscal deficit and ensure public-debt sustainability; promote economic recovery; safeguard the stability of the financial system and the balance of payments; and help promote competitiveness and improve the business environment.
The IDB loan, which will be disbursed in a single tranche, has a seven-year amortization period, a three-year grace period and an interest rate based on LIBOR.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.