Deputies approve a $300 million loan with the World Bank in the first debate

The deputies of the Legislative Assembly approved in the first debate file 22,830, which consists of a $300 million loan with the World Bank (WB), aimed at development policies for fiscal management and decarbonization.

According to the objectives of the project, the resources will be used to “protect income and jobs” from the impact of the pandemic and promote the recovery of SMEs, reinforce fiscal sustainability after the health emergency and lay the foundations for a recovery after COVID -19, promoting green growth and low-carbon development. 10% of the amount will go to the Costa Rican Social Security Fund (CCSS).

The loan will be for a term of 20 years with an interest rate of 1.58%.

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This credit had as a requirement the approval of the public employment law, as explained by the Minister of Finance, Elian Villegas, to the newspaper The nation. In addition, it is part of a group of loans for $850 million with different entities that would allow the Government to request fewer resources in the internal market and, therefore, put less pressure on interest rates within the country.

“This project does not create new spending, but rather replaces a source of financing,” with the aim of lowering the cost of debt and lessening the pressure on the exchange rate, declared the pro-government deputy Laura Guido.

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