Costa Rica In Talks For IMF
Loan
Costa Rica is in talks with the IMF to obtain a loan, but the terms
and size of such loan have not been determined.
"They are in discussions for a precautionary standby agreement",
says an IMF spokesman, adding that there is no timeframe for a loan
to be approved.
A source at the Banco Central de Costa Rica (Central Bank) confirms
talks are taking place and says the country seeks to borrow "a
percentage of its IMF quota."
The loan could be up to us$750 million dollars, but neither the IMF
nor Central Bank officials would give a specific number.
JPMorgan, however, expects the country to see only a 0.5% growth
this year. It also says the official forecast calls for government
accounts to record a 2.8% of GDP deficit in 2009, as increased
spending is used to stimulate economic activity.
"However, given its recent history of fiscal prudence, we would be
surprised is Costa Rica outperforms its fiscal targets yet again
this year", says JPMorgan.
Costa Rica's president, Oscar
Arias, is forecasting that the rate of growth this year will be as
much as 1%, less than half of the 2.2% forecast by the Central Bank. |
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