Washington, DC: After concluding the 2025 Article IV consultation with Costa Rica on May 12, 2025, the International Monetary Fund (IMF) Executive Board met on the same day in an informal session [1] to discuss a request from the authorities for a two-year arrangement under the Flexible Credit Line (FCL) with the IMF in an amount equivalent to SDR 1.1082 billion (300 percent of quota or about US$1.5 billion). The authorities intend to treat the credit line as precautionary.
The FCL is reserved for countries with very strong policy frameworks and track records in economic performance. It helps safeguard countries by providing them with upfront access to IMF resources in case needed if future external shocks materialize. The FCL also permits qualifying countries to signal continued commitment to very strong institutional frameworks and macroeconomic and financial policies. Unlike the Extended Fund Facility (EFF) arrangement, which the authorities completed in 2024, the FCL has no ex-post conditionality.
On the basis of Costa Rica's very strong economic fundamentals, institutional policy frameworks, and track record, IIMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Costa Rica when the IMF Executive Board meets again to take a decision in the following weeks. The IMF stands ready to continue its fruitful engagement with Costa Rica.
[1] During an informal session, IMF staff engages with Executive Board Members to discuss country matters where no formal board decision is expected.
