Insisting on borrowing to pay its loans, the central government continues to bet on the $ 1.7 billion loan with the IMF, the government has refused to propose a better alternative. If the current plan is maintained and passed, the government 75% of the proceeds would be obtained through taxes and only 25% through savings and cuts to state waste.
Through a message to the public on a national radio and television channel, the Government explained to Costa Rica the need to reach an agreement with the International Monetary Fund (IMF) because the strong blow of the pandemic in our economy caused a severe decrease in the State’s income to meet its obligations.
“To get an idea, in 2020, revenues fell 1.2 trillion colones. That is 4 times the full budget of the Ministry of Public Works and Transport (MOPT) ”, detailed the message that was broadcast tonight.
Making decisions at this time is urgent. “But if we do nothing, the consequences for the country will be very drastic. Already in the 1980s we were experiencing a crisis due to debt problems, a product of not making those difficult decisions on time, “the message added.
In that crisis, the price of the dollar multiplied by five – it went from ¢ 8 to ¢ 40 -, the unemployment rate doubled and poverty reached 54% of the country’s households. “The impact was much greater than that of any tax,” it is stressed.
Costa Rica is at a critical point, but it is still possible to straighten the road. “Costa Rica should not and cannot repeat this story. Although it requires difficult decisions, the good news is that avoiding a new crisis is possible, making responsible decisions with a balanced agreement to access IMF funds, ”the information assures.