The World Bank’s Executive Board has approved a US$300 million loan to support Costa Rica in improving fiscal management and promoting sustainable economic activities that generate quality jobs, particularly in rural and coastal areas. The initiative aims to modernize fiscal and environmental policies to enhance service delivery in key sectors such as health, education, and environmental protection.
Rudolf Lücke Bolaños, Costa Rica’s Minister of Finance, highlighted that the loan will help consolidate the country as a regional leader in sustainability and financial responsibility. In fiscal management, the First Costa Rica Fiscal Management and Green Growth Development Policy Loan focuses on optimizing tax collection, enhancing public spending efficiency, and strengthening debt management. Measures include better administration of tax exemptions for equitable taxation, implementation of Results-Based Budgeting to improve spending outcomes, and support for capital market development to secure financing under better conditions.
In the green economy sector, the loan supports the expansion of the Payment for Environmental Services program to cover biodiversity, water, and marine ecosystems. The establishment of a national livestock traceability system aims to promote sustainable agriculture, ecotourism, and other green sectors. By linking conservation with income generation, the program seeks to create scalable employment opportunities and strengthen communities, ensuring active participation from vulnerable groups, including women and indigenous peoples.
Carine Clert, World Bank Country Manager for Costa Rica and El Salvador, emphasized that the loan reflects the strong partnership between Costa Rica and the World Bank, reinforcing the country’s transition toward a climate-resilient economy while creating sustainable livelihoods and improving job stability.
The US$300 million operation is structured as a variable-rate loan with a final maturity of 33.5 years and includes a six-year grace period, providing long-term support for Costa Rica’s fiscal and environmental reforms.
Related Posts
