Costa Rica Third Fiscal and Decarbonization Management DPL

The development objective of the Third Fiscal and Decarbonization Management Development Policy Loan (DPL) for Costa Rica is to support Costa Rica’s program to: (i) protect people’s income and jobs from the impact of COVID-19 and foster small and medium enterprise recovery; (ii) reinforce fiscal sustainability in the aftermath of COVID-19; and (iii) lay out the foundations for a strong post-COVID-19 recovery by promoting green growth and low-carbon development. The operation is part of a DPL series that supports Costa Rica’s efforts to mitigate the social and economic impacts of recent exogenous shocks in the short term and to achieve a sustainable fiscal and green growth path in the medium term. This operation closes the DPL series by deepening the structural reform agenda by the earlier operation, while also helping Costa Rica to navigate adverse external conditions related to Russia’s invasion of Ukraine and tightening of United States monetary policy.