Costa Rica: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Third Review Under the Resilience and Sustainability Facility Arrangement, and Monetary Policy Consultation Clause

IMF Staff Country Reports, June 14, 2024

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This paper presents Costa Rica’s Sixth Review under the Extended Arrangement under the Extended Fund Facility, Third Review under the Resilience and Sustainability Facility Arrangement, and Monetary Policy Consultation Clause.
The authorities continue to make important progress on Costa Rica’s economic reform agenda.
Going forward, the authorities should focus on institutionalizing the impressive progress over the past three years and sustaining reform momentum.
The supervisory authorities should continue to enhance their toolkits to strengthen financial sector resilience.
A recently submitted bill to amend the bank resolution and deposit insurance law would help strengthen the crisis management framework and the financial safety net and should be approved quickly.
Keeping the momentum of structural reforms is critical to achieving greener and more inclusive growth.
The new social assistance single window is increasing the quality of social spending.
It is critical for the public employment bill to be fully implemented by all affected institutions.

Continue enhancing supervisory toolkits to strengthen financial sector resilience.
Approve the recently submitted bill to amend the bank resolution and deposit insurance law to strengthen the crisis management framework and the financial safety net.

Sustain reform momentum to institutionalize progress achieved over the past three years.
Maintain focus on structural reforms to achieve greener and more inclusive growth.

The new social assistance single window is improving the quality of social spending.
Full implementation of the public employment bill by all affected institutions is critical.