IMF Staff Country Reports

Costa Rica: Request for an Arrangement under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Costa Rica

June 3, 2025

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International Monetary Fund. Western Hemisphere Dept. "Costa Rica: Request for an Arrangement under the Flexible Credit Line-Press Release; Staff Report; and Statement by the Executive Director for Costa Rica", IMF Staff Country Reports 2025, 120 (2025), accessed November 7, 2025, https://doi.org/10.5089/9798229013239.002

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Summary

This paper presents Costa Rica’s Request for an Arrangement under the Flexible Credit Line (FCL). Costa Rica qualifies for the FCL by virtue of its very strong economic fundamentals and institutional policy frameworks, its track record of implementing very strong policies, and commitment to maintaining such policies in the future. The arrangement will enhance Costa Rica’s external buffers and provide insurance against external downside risks. The authorities intend to treat the arrangement as precautionary and would consider requesting reduced access in the future, risks permitting. The authorities are committed to maintaining their strong policies and frameworks. They are appropriately prioritizing further reducing public debt, enshrining central bank independence, and further strengthening financial supervision and crisis management. Costa Rica is vulnerable to the shifting external environment. In the context of increased external risks, the new FCL arrangement is expected to provide valuable insurance. Downside risks include a prolonged increase in global uncertainty, slower growth in major trading partners, tighter global financial conditions, and higher oil prices.

Subject: Balance of payments, Central banks, Credit, External debt, Foreign direct investment, International reserves, Money, Public debt

Keywords: Central America, Credit, Fcl arrangement, FCL arrangement, Fcl guideline, Fcl request, Foreign direct investment, Global, International reserves, Macroeconomic stability, Western Hemisphere

Publication Details

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