The compromises that Costa Rica made with the IMF –

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An assortment of Costa Rican colones.

Costa Rica receives a three-year loan of $ 1.78 billion from the International Monetary Fund under the finance company’s Extended Fund Facility (EFF).

“When a country borrows from the IMF, it pledges to take action to overcome economic and structural problems,” says the IMF. “Under an EFF, these commitments, including specific conditions, are expected to place a strong emphasis on structural reforms to address institutional or economic weaknesses as well as measures to maintain macroeconomic stability.”

Costa Rica’s goal is to stabilize the country’s national debt and reach a primary surplus of 1% by 2023.

These are the legal projects that Costa Rica has agreed to under its IMF agreement:

Actions that are part of the proposal

Legal projects

  • Framework Law for Public Employment (See invoice)

  • Law on the Reduction of Tax Benefits and the Adjustment of Tax Rates on Investment Gains to Strengthen the Tax System (See invoice)

  • Special tax law for lottery prizes and other games of chance sold, distributed or marketed by the Social Protection Agency (See invoice)

  • Reform of the general customs law (See invoice)

  • Reducing public spending by eliminating vacancies and freezing pension increases from the state budget (over 450,200 colons and until the national debt is less than 60% of GDP) (See invoice)

  • Luxury property tax (change from current) (See invoice)

  • Dual global income (See invoice)

  • Solidarity law and temporary contribution to the usefulness of public companies for the Costa Rican population for tax adjustment (See invoice)

  • Sale of the Conape portfolio (Multisectoral Dialogue Agreement)

Executive decrees

  • Executive Decreto 42798-H on compliance with the tax rule for current transfers, purchase of goods and services, special services, substitutions and possible remuneration. (See decree)