More than five million Costa Ricans will sustainably improve their purchasing power with CABEI support

Tegucigalpa, August 16th, 2022.- The purpose ofthe "Second Operation of Fiscal Consolidation Policies, COVID-19 Economic and Social Mitigation, and Decarbonization of the Republic of Costa Rica" approved by the Central American Bank for Economic Integration (CABEI) for US$290 million is to lay the foundations for a low-emission economic recovery, as well as the country's fiscal consolidation.

This operation is expected to benefit more than five million Costa Ricans by improving the targeting of social protection programs, preserving employment, supporting micro, small and medium-size enterprises (MSMEs) in the short and medium term, and creating conditions for a more efficient allocation of resources in the economy.

"We are pleased to approve this second DPO to Costa Rica with which we anticipate supporting the authorities in the implementation of measures that will allow the country to improve its Gross Domestic Product, preserve productive jobs by creating the conditions for MSMEs to continue to operate and prosper in the economic reactivation, strengthen public finances, build a path towards fiscal consolidation and in the implementation of reforms that help with the decarbonization of the economy," indicated CABEI Executive President Dr. Dante Mossi.

In July 2020, CABEI approved a first DPO to Costa Rica for US$250 million, plus an additional US$50 million, for the economic reactivation of the productive sectors most affected by the crisis. After receiving congressional approval, CABEI disbursed the funds in full in the first four months of 2022.

The financial terms of the loan are for a 20-year term, including a five-year grace period, with a 6-month Libor interest rate plus a fixed margin of 2.40%.