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Costa Rica agrees to US$710 million in IMF financing to combat climate change

The International Monetary Fund (IMF) technical mission today agreed with the government of Costa Rica on US$710 million in financing to help meet its agenda for transitioning to a carbon-neutral economy and addressing climate change.

The agreement follows the third review by the IMF’s technical mission related to the US$1.77 billion Extended Fund Facility (EFF), which the Costa Rican government will use to reduce interest payments on its debt.

San José, Costa Rica. (Photo internet reproduction)
San José, Costa Rica. (Photo internet reproduction)

This third review will allow Costa Rica to receive a new disbursement of US$264 million once IMF authorities ratify the agreement.

The money to combat climate change comes from a new IMF facility, Resilience, and Sustainability, to which few countries have access.

“We are starting with countries with a strong climate agenda and need these funds now,” said IMF mission chief Manuela Goretti.

Goretti explained that these funds will be granted for a 20-year term, with a 10-year grace period and “a very low-interest rate.”

Costa Rica aims to become an economy that offsets and reduces its total carbon emissions by 2050.

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