By: Ismael Hernandez
The Inter-American Development Bank (IDB) will disburse $250 million corresponding to the Fiscal Sustainability Support Program loan agreement approved in December 2021 by the Legislative Assembly.
The funding is intended to strengthen sustainability, through spending control and modernization of the tax system, and is instrumentalized through an operation of budget support.
This was announced by the Ministry of Finance.
The disbursement of the operation implies that the country has improved its macrofiscal institutional frameworkand has improved the management of public spending.
Advances come to strengthen fiscal sustainability, maintain macroeconomic stability in the short and medium term and to support the sustainable economic recovery of Costa Rica.
The loan program has a credit term of 20 yearswith a grace period of five yearsso the amortization period is 15 years.
The loan has an adjustable interest rate of Libor three months, plus a margin of 1%.