Costa Rica wins new aid deal under IMF climate change fund

The IMF on Tuesday agreed to a deal to provide aid to Costa Rica under the newly-created fund aimed at helping low-income countries tackle the impacts of climate change.

A team from the Washington-based lender agreed with the Central American nation's government to provide $710 million under the Resilience and Sustainability Trust (RST) launched earlier this year -- only the second country to receive funding.

In addition, the International Monetary Fund mission agreed on the latest review of the country's performance under an existing, $1.8 billion loan program, which will allow release of the next $264 million disbursement, once approved by the fund's board.

Costa Rica was the first member country to formally request financing under the RST, although IMF staff announced the inaugural deal last week with Barbados.

"The new facility would support Costa Rica's pioneering efforts to assess climate risks, decarbonize its economy, (and) strengthen infrastructure resilience," IMF mission chief Manuela Goretti said in a statement.

The IMF aims to mobilize $45 billion for the RST with contributions from member governments and provide 20-year loans available to about 140 low- and middle-income nations eligible for the funding.

Goretti praised the government's economic reform efforts including reducing the budget deficit and strengthening debt sustainability "even as they provide greater support to address the impact of rising inflationary pressures on the most vulnerable."

She also welcomed the central "decisive move" to tighten monetary policy to combat rising prices, but warned about risks to the economic outlook.

Related Links
Climate Science News - Modeling, Mitigation Adaptation

Tweet

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only

SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Calls for more funding as pre-COP27 climate talks open in DR Congo
Kinshasa (AFP) Oct 3, 2022
Warning "no-one will escape" a worsening crisis, DR Congo led calls on Monday for a surge in funding to brake global heating and fight its impacts at the start of pre-COP27 climate talks in Kinshasa. The haggle comes ahead of COP27 - the UN's 27th summit-level gathering on climate change, which is due to take place in Egypt next month. At opening ceremonies in the DRC's parliament building, Congolese Environment Minister Eve Bazaiba called on countries to respect financial pledges and endorse ... read more