Home » World » Costa Rica approves reform to access US$ 1,778 million loan approved by the IMF – AméricaEconomía

Costa Rica approves reform to access US$ 1,778 million loan approved by the IMF – AméricaEconomía

The Assembly of Costa Rica approved this Monday, after three years of discussions, a reform of the wage system for state workersone of the conditions for the country to access funds from a loan of US$ 1,778 million already approved by the IMF.

The plan consists of replacing the current salary benefits differentiated by institution and creating global salaries by category that cover the entire State, which has some 280,000 jobs.

The measure would save more than US$600 million per year, according to local financial authorities.

“It will promote salary equality between people in the public sector with the same function, more justice between workers in the public and private sectors and better control of public spending,” said President Carlos Alvarado on his Twitter account about the endorsement of the reform.

The project constitutes the main austerity measure of the Alvarado government to meet the fiscal goals committed to with the IMF in January 2021 to access resources, which are a breath of fresh air to face a fiscal crisis aggravated by the coronavirus pandemic.

Costa Rica closed 2021 with a deficit of 5.18% of the Gross Domestic Product (GDP), which the Government expects to rebound by 3.9% this year, half of the economic growth registered in 2021.

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