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Next Costa Rican administration faces challenge of risk of default

Monday, February 5, 2018


The challenge for the next government of Costa Rica is the danger of a default, but if the central bank's forecast of an 8 percent deficit of GDP materializes, such an outcome appears to be highly likely.

Last year when the deficit was 6.2 percent, the nation faced pressure on interest rates; consumers and investors were met with uncertainty; liquidity problems confronted the Finance ministry: there were warnings from the ratings agency and a  sharp squeeze on resources. Imagine, then, what is likely to happen with an 8 percent deficit.

Source (in Spanish): La República