World Bank approves $500 mln loan to Costa Rica

The World Bank (WB) has approved a $500 million loan to Costa Rica to strengthen support for the government’s budget, the Bank announced in a statement on Friday.

The loan is aimed at supporting Costa Rica’s post-pandemic efforts to grow employment and wages and assist small and medium-sized companies.

“While Costa Rica has made much progress in the environmental, economic, and social spheres, the reduction of poverty and inequality remains an ongoing challenge,” said Carine Clert, World Bank country manager for El Salvador and Costa Rica.

The 19.5-year loan includes a four-year grace period and an interest rate based on the Secured Overnight Financing Rate (SOFR) plus a variable margin in US dollars.