Costa Rica: Request for Purchase Under the Rapid Financing Instrument (RFI) — Press Release; Staff Report; and Statement by the Executive Director for Costa Rica

IMF Staff Country Reports, May 1, 2020

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Canonical URL: Costa Rica: Request for Purchase Under the Rapid Financing Instrument (RFI) — Press Release; Staff Report; and Statement by the Executive Director for Costa Rica

The coronavirus disease 2019 pandemic has severely impacted Costa Rica due to its large exposure to trade, tourism, and foreign direct investment.
The global economic slowdown and containment measures have:
- impacted growth and fiscal accounts;
- created an urgent balance of payments need.
The IMF’s emergency financing under the RFI is expected to:
- help support urgently needed public health and social spending measures;
- address the balance of payments need;
- catalyze support from other multilateral agencies to address remaining financing needs.

The authorities have taken timely, well-targeted measures to mitigate adverse effects of the pandemic.
Health and containment:
- Introduced extensive containment measures, which have helped flatten the infection curve.
Economic and social mitigation measures adopted:
- temporary moratorium on tax payments;
- social transfers to protect the most vulnerable;
- monetary and regulatory measures to ease credit and liquidity conditions.

IMF emergency financing under the RFI is positioned to:
- support public health and social spending priorities immediately;
- address balance of payments pressures;
- act as a catalyst for additional support from other multilateral agencies, which will be critical for remaining financing needs.