WASHINGTON, D.C., September 30, 2025 - The World Bank's Executive Board today approved a loan to support the Government of Costa Rica's efforts to improve the efficiency of fiscal management, as well as to promote sustainable economic activities that generate new jobs and improve job quality, especially in rural and coastal communities.
"The support from the World Bank allows us to accelerate the modernization of our fiscal and environmental policies to consolidate Costa Rica as a regional benchmark in sustainability and financial responsibility. This joint effort will translate into better services for citizens, especially in key areas such as health, education, and environmental protection," said Rudolf Lücke Bolaños, Minister of Finance of Costa Rica.
Regarding fiscal management, the "First Costa Rica Fiscal Management and Green Growth Development Policy Loan " emphasizes improvements in tax collection, public spending efficiency, and debt management. Optimization of tax collection will be pursued through steps that include better management of exemptions for a more equitable tax policy. Public spending efficiency will be strengthened by implementing Results-Based Budgeting. In public debt management, efforts will support the development of capital markets and ensure access to financing under better conditions.
In the area of green economy, the aim is to expand the Payment for Environmental Services program to include biodiversity, water, and marine ecosystems; and by establishing a national livestock traceability system, the loan supports growth in green sectors such as sustainable agriculture and ecotourism. Linking conservation with income generation offers a scalable model for job creation and community strengthening. This approach seeks to ensure the participation of the most vulnerable groups, such as women and indigenous peoples, in environmental conservation programs.
"This new loan reflects the strong collaborative relationship between the World Bank and the Government of Costa Rica, based on trust and a shared commitment to economic growth and environmental protection. As the country moves toward a climate-resilient economy, these initiatives help create sustainable livelihoods and improve job stability," said Carine Clert, Country Manager for Costa Rica and El Salvador at the World Bank.
The US$300 million operation, financed by the World Bank, is a variable-rate loan with a final maturity of 33.5 years, including a six-year grace period.
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