IMF approves $1.5 billion, 2-year flexible line of credit for Costa Rica
WASHINGTON, June 2 (Reuters) - The International Monetary Fund on Monday said it had approved a $1.5 billion, two-year precautionary flexible line of credit for Costa Rica, saying it would enhance Costa Rica's external buffers against potential risks.
In a statement, the IMF said its Flexible Credit Line arrangements were reserved for countries with very strong policy frameworks and track records in economic performance.
"The arrangement is intended to send a very clear signal of the quality of the country's very strong policies and institutional frameworks," it said.
The IMF said Costa Rican authorities planned to treat the arrangement as precautionary, for use if future external shocks materialized, and could request reduced access in the future if external risks were to decline.
IMF Deputy Managing Director Kenji Okamura said Costa Rica had an impressive reform track record which had spurred economic growth, reduced public debt, and lowered poverty.
But the country was vulnerable to increased external risks, including a prolonged increase in global uncertainty, slower growth in major trading partners, tighter global financial conditions, and higher oil prices.
The IMF last month said Costa Rica's growth was expected to ease to around 3.5% in 2025 and inflation was expected to return to the central bank's target of 3%.
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