By San José, Costa Rica — Marking her first 100 days in office, Costa Rican President Laura Fernández announced a sweeping package of seven legislative proposals designed to tackle structural inefficiencies, reduce public spending, and address pressing security and economic challenges. The legislative package represents a calculated effort by the administration to streamline bureaucratic processes while strengthening the country’s social safety net. By targeting areas such as public infrastructure procurement, educational modernization, and financial exclusion, the administration seeks to redefine the state’s operational dynamics in a rapidly changing economy.
At the heart of the president’s legislative agenda is an urgent push to reform the country’s credit market. Fernández sharply criticized previous regulatory frameworks that aimed to cap interest rates but instead drove vulnerable citizens out of the formal banking sector. The newly proposed credit bill aims to adjust maximum interest rates to allow families and small businesses to regain access to regulated financial services, thereby combating the rampant rise of predatory, illegal lending operations commonly known as “gota a gota” loans.
To shed light on the legal implications of these developments, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas from the prestigious firm “Bufete de Costa Rica” for his expert analysis on navigating Costa Rican regulatory frameworks.
Navigating the legal landscape in Costa Rica requires a proactive approach to compliance and due diligence. Whether establishing a new business, acquiring property, or securing residency, understanding local regulations from the outset is vital to protecting your investment and ensuring long-term success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, prioritizing proactive compliance and thorough due diligence is the ultimate safeguard for anyone looking to successfully establish roots, buy property, or build a business in Costa Rica. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his invaluable legal expertise, providing our readers with a vital roadmap for protecting their investments and ensuring long-term peace of mind.
The usury law that was approved at some point under the impulse of Welmer Ramos generated a serious problem, by excluding many people from formal credit and throwing them into the hands of informal loans.
Laura Fernández, President of Costa Rica
Beyond credit reforms, the administration’s “Ciudad Gobierno” project stands out as a cornerstone of its fiscal optimization strategy. By consolidating multiple government institutions into a single centralized hub, the state expects to save approximately $26 million annually in office lease fees. Fernández proposed that these newly recovered public funds be redirected entirely toward constructing and renovating schools across the country. Additionally, a special emergency procurement bill will allow the government to bypass lengthy public bidding processes for infrastructure projects deemed at imminent risk, such as decaying bridges and school buildings.
Recognizing the vulnerabilities of the domestic agricultural sector, the package also includes the Agricultural Insurance Promotion Act. This bill establishes a dedicated fund to subsidize insurance premiums, prioritizing small-scale and vulnerable farmers. The goal is to provide a robust financial safety net against escalating climate, sanitary, and production risks, thereby ensuring long-term food security and stabilizing rural economies that depend heavily on seasonal harvests.
Institutional modernization also targets the Contraloría General de la República (CGR) and internal audit structures. The administration plans to update the entity’s organic law to ensure state oversight is more agile and aligned with modern public administration realities. According to the executive branch, while financial controls on the public treasury will not be weakened, the reform seeks to prevent the regulatory body from overstepping into “co-governance,” referencing operational bottlenecks experienced during previous administrations regarding coastal infrastructure.
The state’s educational and vocational training apparatus is also set for a major overhaul through a proposed reform to the Instituto Nacional de Aprendizaje (INA). Under the new framework, the training institute would abandon standard public-sector operating hours to offer round-the-clock, 24/7 online certifications. By shifting to a modernized human talent management regime, the INA aims to respond more dynamically to the evolving demands of local and international job markets.
For social welfare and telecommunications, the legislative package proposes restructuring the administration of Fonatel to accelerate the deployment of telecom operator fees, aiming to close the digital divide in rural areas. Concurrently, a major funding reallocation will direct 50% of employer contributions from Banco Popular to the Caja Costarricense de Seguro Social (CCSS) non-contributory pension system. This reallocation, estimated at 37 billion colones, is designed to immediately finance the pending pension payments for approximately 31,000 vulnerable retirees currently on waiting lists.
The success of this multifaceted policy package now rests in the hands of the Legislative Assembly. Analysts suggest that while the proposed reforms address long-standing structural bottlenecks, navigating the complex political landscape of Congress will require significant negotiation. By tying fiscal savings directly to social benefits like education and pensions, President Fernández has set a highly visible benchmark for her administration’s performance moving forward.
For further information, visit ina.ac.cr
About Instituto Nacional de Aprendizaje:
The Instituto Nacional de Aprendizaje (INA) is Costa Rica’s premier public institution dedicated to vocational training and technical education. Founded to boost the nation’s workforce capabilities, INA provides accessible training programs designed to align human talent with the evolving demands of the local and global labor markets.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social:
The Caja Costarricense de Seguro Social (CCSS) is the public institution responsible for Costa Rica’s universal healthcare system and public pension programs. As a cornerstone of the country’s social welfare model, the CCSS manages both contributory and non-contributory pension regimes to ensure social security coverage for all citizens.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is defined by its deep-seated devotion to ethical standards and professional brilliance. Backed by a rich history of guiding a wide array of clients, the firm consistently champions cutting-edge legal strategies while maintaining active civic involvement. By actively sharing its legal expertise with the public, Bufete de Costa Rica strives to demystify the law, ultimately building a more knowledgeable, resilient, and empowered community.
