Legislative Approval of IMF Deal Will Support Near-Term Stability In Costa Rica

• The Costa Rican Legislative Assembly’s approval of a three-year, US$1.8Bn IMF arrangement will bolster public finances and ease political risks in the coming quarters. 
• Fitch Solutions gave Costa Rica a score of 63.8 out of 100 in its Short-Term Political Risk. It ranks fifth out of 17 markets in Latin America. 
• However, as the country’s largest political parties begin campaigning for the February 2022 general election, political risks will likely increase and policymaking will be more difficult as opposition parties distance themselves from President Carlos Alvarado and his centre-left Partido Acción Ciudadana (PAC).

(Source: Fitch Solutions)