After concluding the 2025 Article IV consultation with Costa Rica on May 12, the International Monetary Fund (IMF) Executive Board convened in an informal session to discuss a request from Costa Rican authorities. The request involves a two-year arrangement under the Flexible Credit Line (FCL) with the IMF, amounting to SDR 1.1082 billion, equivalent to 300 percent of quota or approximately US$1.5 billion. This credit line is intended to be used as a precautionary measure.
The FCL is designated for countries with robust policy frameworks and strong economic performance records. It offers these countries access to IMF resources upfront in case future external shocks occur. Additionally, it allows qualifying nations to demonstrate their commitment to maintaining strong institutional frameworks and sound macroeconomic and financial policies. Unlike the Extended Fund Facility (EFF) arrangement completed by Costa Rica in 2024, the FCL does not impose ex-post conditionality.
Based on Costa Rica's solid economic fundamentals and policy track record, IMF Managing Director Kristalina Georgieva plans to recommend approval of this FCL arrangement when the IMF Executive Board reconvenes for a decision in the coming weeks. "The IMF stands ready to continue its fruitful engagement with Costa Rica," stated Georgieva.