November 30, 2020

The World Bank lends Costa Rica $ 300 million to face the pandemic



The World Bank (WB) approved this Friday a loan of 300 million dollars to Costa Rica to support programs that seek to protect income and jobs amid the crisis that is causing the COVID-19 pandemic.

The World Bank reported in a statement that the loan is aimed at “protecting the income and jobs of the population, favoring small and medium-sized enterprises (SMEs), reaffirming fiscal sustainability after the health crisis and establishing the bases of robust post-pandemic recovery through green growth and low carbon development. ”

Costa Rican Finance Minister Elián Villegas said in the statement that the bank’s support “complements the deployment made by our government during this health emergency.”

“We have made an effort to satisfy the health and social assistance needs of the population, although there is still a long way to go towards sustainable growth,” said Villegas.

The three axes of the “Development Policy Loan for Fiscal Management and Decarbonization” are interconnected and mutually reinforcing:

The WB highlighted the work of Costa Rica in health matters and assured that the Government of this country “responded quickly” to the first signs of crisis with “energetic measures of containment”, which in turn slowed down the economic progress of the end of 2019 and early 2020.

“We are confident in the strength of the economic and health sectors in Costa Rica together with an adequate process of policy formulation, which is key to strengthen fiscal consolidation and establish the foundations for green and resilient growth,” said the director of the World Bank for Central America, Seynabou Sakho.

Sakho stated that the mitigation measures, backed by the bank’s loan for development policies, “will contribute to the authorities’ efforts to conserve jobs and to prevent people from falling into poverty during this difficult time.”

The $ 300 million operation is financed by the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank Group, has a fixed rate and a final maturity of 34.5 years, including a five-year grace period. , indicates the official information.

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