Published on Tuesday, June 3, 2025
By the A.M. Costa Rica staff

The Executive Board of the International Monetary Fund (IMF) approved on Monday a $1.5 billion loan for Costa Rica under the Flexible Credit Line (FCL) program.

According to the major financial agency of the United Nations, Costa Rica has maintained a close relationship with the Fund through surveillance, capacity development and lending.

The authorities sought fund support through the Rapid Financing Instrument (in April 2020), an Extended Fund Facility (EFF) arrangement (approved on March 1, 2021, and completed on June 14, 2024), and a Resilience and Sustainability Facility (RSF) arrangement (approved on November 14, 2022, and completed on June 14, 2024).

"Costa Rica’s very strong fundamentals and institutional policy frameworks, sustained track records of implementing very strong policies, and continued commitment to maintaining such policies in the future all justify the transition to an FCL arrangement, " said the bank in its statement. "


The authorities plan to treat the arrangement as precautionary. The arrangement provides Costa Rica with upfront access to IMF resources in case needed if future external shocks materialize.

“Costa Rica has very strong economic fundamentals and institutional policy frameworks,  said  Kenji Okamura, IMF Deputy Managing Director and Acting Chair. " An impressive reform track record has simultaneously spurred GDP growth, reduced public debt, and lowered poverty. The economic outlook remains favorable."

Costa Rican government is committed to reducing public debt, enshrining central bank independence, and further strengthening financial supervision and crisis management, the bank noted.

Costa Rica closed 2024 with a fiscal deficit equal to 3.8% of its Gross Domestic Product (GDP), marking a 0.5 percentage point increase from the 3.3% deficit recorded in 2023, the Ministry of Finance reported.

Officials attributed the increase primarily to debt interest payments, which accounted for 4.8% of GDP.

For the year, total government revenues reached 15.1% of GDP, while total expenditures stood at 18.9% of GDP.

The Ministry of Finance is the government agency responsible for regulating fiscal policy and managing public resources, guided by principles of economic efficiency and effectiveness.

----------------
What policy actions should Costa Rica consider to address its rising debt? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com