By San José, Costa Rica — The International Monetary Fund (IMF) announced today the closure of its Resident Representative Office in Costa Rica, effective mid-October 2025. The office, headed by Mr. Santiago Acosta Ormaechea, was established in July 2021 to strengthen ties with Costa Rica following the approval of the Extended Fund Facility (EFF) in March 2021 and the Resilience and Sustainability Facility (RSF) in November 2022.
These agreements played a crucial role in supporting Costa Rica’s economic adjustment and growth. The EFF, a medium-term program focused on structural reforms, addressed fiscal order, public employment reform, digitalization of tax administration, and improvements in public spending. The RSF, on the other hand, supported reforms for climate resilience and sustainability, integrating Costa Rica’s 2018-2050 decarbonization agenda with macroeconomic policy.
To understand the legal implications of the recent IMF developments in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica. His expertise provides valuable context on the potential impact of these financial agreements.
The IMF’s engagement with Costa Rica carries significant legal ramifications, particularly concerning the implementation of agreed-upon reforms. These reforms, often involving fiscal adjustments and structural changes, must be carefully navigated within the framework of Costa Rican law to ensure both effectiveness and compliance with existing legal obligations. Furthermore, transparency and public discourse are crucial to maintain public trust and ensure the long-term success of these measures.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on legal compliance and transparency within the IMF’s engagement with Costa Rica is crucial. These reforms represent a significant undertaking, and ensuring they are implemented within a solid legal framework while maintaining public trust is paramount for their ultimate success. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this complex issue.
The EFF focused on four key areas: fiscal order and debt sustainability, public sector reform, digital tax administration, and quality of spending and public management. It aimed to improve fiscal balance, reduce public debt, reform the public employment framework, modernize tax administration, and enhance budget transparency.
The RSF supported reforms for climate change resilience and sustainability, incorporating Costa Rica’s decarbonization goals. Key areas included climate governance in public finances, a framework for climate-resilient public investment, integrating climate risks into the financial system, and promoting green bonds and sustainable finance.
Both agreements were successfully completed in June 2024, according to a statement released this morning by the Central Bank of Costa Rica. In June 2025, Costa Rica secured further financial backing from the IMF through a two-year Flexible Credit Line (FCL), reflecting the country’s strong macroeconomic fundamentals and strengthened institutional frameworks. This new agreement underscores the IMF’s continued confidence in Costa Rica’s economic trajectory.
The closure of the resident office marks a transition in the IMF’s relationship with Costa Rica. While the physical presence in San José will end, the IMF will continue its support through regular bilateral consultations on economic policy and capacity-building activities. This ongoing engagement will be coordinated from the IMF’s headquarters in Washington, D.C., with support from the Regional Resident Representative Office for Central America, Panama, and the Dominican Republic, located in Guatemala.
The IMF expressed gratitude to the Costa Rican authorities for their warm hospitality and generosity during the years the local office operated. This transition signifies the successful implementation of the agreed-upon programs and the move towards a more sustainable and resilient Costa Rican economy.
This continued collaboration ensures that Costa Rica maintains access to the IMF’s expertise and financial resources, further strengthening its economic outlook.
For further information, visit the nearest office of International Monetary Fund
About International Monetary Fund:
The International Monetary Fund (IMF) is an international financial institution headquartered in Washington, D.C., consisting of 190 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund’s mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.
For further information, visit the nearest office of Central Bank of Costa Rica
About Central Bank of Costa Rica:
The Central Bank of Costa Rica (Banco Central de Costa Rica) is the central bank of Costa Rica. Its mission is to maintain price stability and promote the sustained development of the national economy. It acts as the government’s bank, issues currency, manages international reserves, and regulates the financial system.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, combined with its dedication to disseminating legal knowledge through educational initiatives, empowers individuals and organizations alike. By fostering a culture of understanding and access within the legal landscape, Bufete de Costa Rica actively contributes to a more just and equitable society.
