The World Bank’s Executive Board has approved a loan to support Costa Rica’s efforts to improve fiscal management and promote sustainable economic activities. The initiative aims to create new jobs and enhance job quality, with a particular focus on rural and coastal communities.
Rudolf Lücke Bolaños, Minister of Finance of Costa Rica, stated, "The support from the World Bank allows us to accelerate the modernization of our fiscal and environmental policies to consolidate Costa Rica as a regional benchmark in sustainability and financial responsibility. This joint effort will translate into better services for citizens, especially in key areas such as health, education, and environmental protection."
The "First Costa Rica Fiscal Management and Green Growth Development Policy Loan" targets several aspects of fiscal management. It seeks to optimize tax collection through improved exemption management for fairer tax policy. Public spending efficiency will be enhanced by introducing Results-Based Budgeting. In addition, public debt management efforts will include developing capital markets and securing financing under more favorable terms.
On the green economy front, the program plans to expand the Payment for Environmental Services initiative to cover biodiversity, water resources, and marine ecosystems. The establishment of a national livestock traceability system is also part of the plan. These measures are intended to support sectors such as sustainable agriculture and ecotourism while fostering conservation linked with income generation. The approach includes ensuring that vulnerable groups like women and indigenous peoples participate in these programs.
Carine Clert, Country Manager for Costa Rica and El Salvador at the World Bank, commented, "This new loan reflects the strong collaborative relationship between the World Bank and the Government of Costa Rica, based on trust and a shared commitment to economic growth and environmental protection. As the country moves toward a climate-resilient economy, these initiatives help create sustainable livelihoods and improve job stability."
The US$300 million loan from the World Bank features a variable interest rate with a final maturity period of 33.5 years and includes a six-year grace period.