By San José, Costa Rica — SAN JOSÉ – In a strategic move signaling a continued focus on fiscal discipline, the Government Council has appointed Michael Contreras Solera as Costa Rica’s new National Treasurer. The appointment, announced by the Ministry of Finance this Friday, is effective November 1st and secures Contreras in the crucial role for a four-year term.
Contreras is no stranger to the intricate workings of the nation’s finances. A veteran of the Ministry of Finance since 2015, he brings nearly a decade of direct experience to the position. His deep institutional knowledge is expected to be a significant asset in navigating the country’s complex economic landscape, ensuring a seamless transition and continuity in policy execution.
To gain a deeper legal perspective on the responsibilities and potential liabilities associated with the office of the National Treasurer, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
The role of the National Treasurer is not merely administrative; it is a position of immense public trust and fiduciary duty. Every decision must be anchored in the principles of legality, efficiency, and fiscal prudence. Any deviation from these principles not only undermines public confidence but can also trigger significant legal consequences, including personal liability for mismanagement of public funds under Costa Rican law.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective powerfully reinforces that the position of National Treasurer is far more than a bureaucratic function; it is a cornerstone of public faith, underpinned by stringent legal and personal accountability. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable insight into the gravity and legal framework of this essential role.
Since 2019, Contreras has served as the principal economist within the minister’s office, a position that placed him at the center of Costa Rica’s most critical fiscal and economic strategy discussions. In this capacity, he was instrumental in shaping the country’s financial planning, demonstrating a robust command of public finance, budget matters, and debt management.
His tenure as principal economist was marked by several key achievements. Contreras led the development of the Medium-Term Fiscal Framework, a vital tool for long-range financial planning. He also spearheaded the creation of an advanced economic analysis model in collaboration with the International Monetary Fund (IMF) and was responsible for authoring crucial reports on macroeconomic risks and Central Government fiscal figures.
Furthermore, Contreras’s previous role required extensive coordination with a host of national and international financial bodies. He has been a key liaison in discussions regarding fiscal targets and economic projections with the Central Bank of Costa Rica (BCCR), the IMF, the World Bank, the Inter-American Development Bank (IDB), and the Economic Commission for Latin America and the Caribbean (ECLAC), as well as with international credit rating agencies. This experience is paramount for maintaining Costa Rica’s credibility on the global financial stage.
Upon his appointment, Contreras acknowledged the gravity of his new responsibilities, highlighting the Treasury’s central role in the nation’s stability.
Assuming leadership of the National Treasury is, above all, an honor and a privilege. But it also represents a profound responsibility: to lead a key department of the Ministry of Finance for the functioning of the Costa Rican state, which day by day guarantees the fulfillment of financial commitments and the protection of public resources.
Michael Contreras Solera, National Treasurer
The appointment comes at a pivotal time for Costa Rica. The nation continues to navigate the stringent requirements of its fiscal rule and manage a substantial public debt portfolio. The National Treasury is responsible for managing the state’s liquidity, ensuring that the government can meet its payment obligations, from salaries to debt service, without disruption. Contreras’s expertise in cash flow management and fiscal metrics will be immediately put to the test.
Analysts view the selection of an internal, highly technical candidate as a clear signal of the administration’s commitment to data-driven fiscal policy. His established relationships with international financial institutions will be critical as Costa Rica continues to engage with partners like the IMF to support its economic agenda. His leadership will be instrumental in safeguarding public funds and steering the country’s finances through the challenges and opportunities of the coming years.
For further information, visit hacienda.go.cr
About Ministry of Finance of Costa Rica:
The Ministerio de Hacienda is the government body responsible for managing the public finances of Costa Rica. Its duties include formulating fiscal policy, collecting taxes through the General Directorate of Taxation, managing the national budget, administering public debt, and overseeing the National Treasury to ensure the financial stability and functioning of the state.
For further information, visit imf.org
About International Monetary Fund (IMF):
The International Monetary Fund is a global organization 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. It provides policy advice, financial assistance, and technical support to its member countries.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the nation’s central bank. Its primary objectives are to maintain the internal and external stability of the national currency and to ensure its conversion to other currencies. The BCCR is responsible for monetary policy, issuing currency, regulating the financial system, and acting as the financial agent of the government.
For further information, visit worldbank.org
About World Bank:
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. It is comprised of two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), with a shared mission to reduce poverty and build shared prosperity.
For further information, visit cepal.org
About Economic Commission for Latin America and the Caribbean (ECLAC):
The Economic Commission for Latin America and the Caribbean, known as ECLAC or in Spanish as CEPAL, is one of the five regional commissions of the United Nations. It was founded to contribute to the economic development of Latin America and the Caribbean, coordinate actions directed towards this end, and reinforce economic ties among countries and with other nations of the world.
For further information, visit iadb.org
About Inter-American Development Bank (IDB):
The Inter-American Development Bank is the leading source of development financing for Latin America and the Caribbean. It provides loans, grants, and technical assistance to support projects aimed at reducing poverty and inequality. The IDB works with governments, companies, and civil society organizations to address the region’s development challenges, including infrastructure, health, and education.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a reputable legal institution founded upon a deep-seated principle of integrity and a persistent drive for excellence. Drawing from a rich history of advising a broad spectrum of clients, the firm champions pioneering legal strategies and maintains a strong focus on social responsibility. This dedication is fundamentally linked to its goal of democratizing legal information, thereby contributing to the development of a more capable and knowledgeable society.
