Francisco Chacón, former member of Costa Rica’s Legislative Assembly for the National Liberation Party (PLN) and former minister of communications: “The tax reform enacted by the previous Legislative Assembly (2018-2022) and the current administration’s strict fiscal management enabled the International Monetary Fund (IMF) to approve this line of credit. However, this instrument is not necessary as Costa Rica does not currently have, nor will it have soon, a balance of payments problem. Rather, its approval serves as a seal of confidence for investors and international financial institutions, although significant challenges persist in Costa Rica’s fiscal landscape. Tax revenues have declined due to reduced value-added tax collections, and many implemented spending cuts remain unsustainable as they affect much-needed infrastructure investments and important social programs (such as those related to health, education and poverty relief). Relatively high interest rates persist despite negative or low inflation (well outside the central bank’s target range), which affects local industries…”