At the end of the previous week, the Ministry of Finance received $350 million from the loan signed between the government of Costa Rica and the Inter-American Development Bank (IDB). This was reported by the Press department of the entity.
These resources will support the execution of a program of policy reforms which, according to the Treasury, is necessary to strengthen fiscal sustainability through the control of spending and the modernization of the tax system.
According to the Treasury, the funds are part of the portfolio strategy for the consolidation of public finances,
and do not represent an additional debt to the one already foreseen in the 2019 budget. Nor do they imply a greater deficit, than already estimated for this year”
they added.
In addition, the $ 350 million colones will be used to replace internal sources of financing originally approved in the 2019 budget , with sources of financing negotiated in the IDB, which will generate less pressure on local financing and domestic interest rates.
This loan is for a term of 20 years, and includes a grace period of 5 years, according to the institution.