Costa Rica: Technical Assistance Report-Sovereign Asset and Liability Management—Scoping Mission

IMF Staff Country Reports, June 15, 2023

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Canonical URL: Costa Rica: Technical Assistance Report-Sovereign Asset and Liability Management—Scoping Mission

The report discusses the scoping mission on sovereign asset and liability management (SALM) for Costa Rica.
A comprehensive SALM framework can have significant advantages over separate management of sovereign assets and liabilities.
Benefits of a comprehensive framework include:
- Analysis of the financial characteristics of the whole balance sheet of the sovereign.
- Identification of sources of costs and risks.
- Quantification of the correlations among those sources.

An analysis of the balance sheet of each entity in Costa Rica’s broader public sector is the first step in developing a consolidated sovereign balance sheet.
The balance sheet composition of each entity, or type of entity, is shaped by:
- The nature of its business.
- Historic policy decisions.
- The regulatory regime under which it operates.
Keywords emphasized in the report: balance sheet composition, balance sheet dollarization, Banco de Costa Rica, BCCR balance sheet, Financial statements, Global, Government asset and liability management, Government debt management, SALM framework.

The SALM framework provides insights into the management of liquidity risk.
Specific institutional recommendation:
- Committee on Sovereign Assets and Liabilities should establish a framework for cash and liquidity management, including a target for a liquidity buffer broken down between individual entities.

Costa Rica: Technical Assistance Report-Sovereign Asset and Liability Management—Scoping Mission (IMF Staff Country Reports, June 15, 2023).