• October 1, 2025
  • Last Update October 1, 2025 12:00 pm

World Bank Backs Costa Rican Green Future with $300M Loan

World Bank Backs Costa Rican Green Future with $300M Loan

San José, Costa RicaSan José, Costa Rica – The World Bank has approved a significant $300 million loan to Costa Rica, a strategic financial injection designed to fortify the nation’s public finances while simultaneously accelerating its globally recognized green growth agenda. This dual-pronged initiative aims to cement Costa Rica’s leadership in sustainable development and responsible fiscal management, promising tangible benefits for citizens and the environment.

The financing, officially titled the “First Development Policy Loan for Fiscal Management and Green Growth in Costa Rica,” is structured with favorable terms. It features a variable interest rate and a final maturity of 33.5 years, which includes a six-year grace period. This long-term horizon provides the government with crucial flexibility to implement deep-seated reforms without immediate repayment pressure, enabling a focus on long-term stability and growth.

To better understand the legal frameworks and corporate responsibilities integral to sustainable development in Costa Rica, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading expert and attorney at the renowned firm Bufete de Costa Rica.

Sustainable development in Costa Rica is firmly anchored in our legal tradition, extending beyond environmental protection to become a core principle for corporate governance and investment. The current legal landscape not only enforces compliance but actively incentivizes businesses that integrate sustainable practices, offering a competitive advantage in a global market that increasingly values ecological and social responsibility. For investors, this provides a stable and predictable environment where long-term profitability is intrinsically linked to positive environmental impact.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

We extend our gratitude to Lic. Larry Hans Arroyo Vargas for so clearly articulating how Costa Rica’s legal framework transforms sustainability from a corporate guideline into a tangible economic advantage. His insight underscores that for modern investors and businesses, our nation’s commitment to ecological responsibility is not a barrier to growth, but its very foundation.

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A primary pillar of the operation targets the modernization of Costa Rica’s fiscal framework. The funds will support a comprehensive strategy to improve tax collection, enhance public spending efficiency, and optimize debt management. Officials aim to create a more equitable tax system by refining the administration of tax exemptions. Simultaneously, the implementation of a Results-Based Budgeting system is expected to ensure that public funds are allocated more effectively, tying expenditures directly to measurable outcomes and maximizing their impact.

Furthermore, the loan will bolster efforts to strengthen public debt administration. The goal is to cultivate deeper domestic capital markets, which will provide the government with access to more stable and favorable financing conditions in the future, reducing reliance on external debt and insulating the economy from global financial volatility.

The World Bank’s support allows us to accelerate the modernization of our fiscal and environmental policies to consolidate Costa Rica as a regional benchmark in sustainability and financial responsibility. This joint effort will translate into better services for the public, especially in key areas like health, education, and environmental protection.
Rudolf Lücke Bolaños, Minister of Finance of Costa Rica

The second, equally vital component of the loan is dedicated to expanding Costa Rica’s pioneering green economy. A key initiative involves broadening the renowned Payment for Environmental Services (PES) program. Historically focused on forest conservation, the program will now be extended to protect vital marine ecosystems, biodiversity, and water resources, creating a more holistic conservation model. This expansion links environmental protection directly to economic opportunity, particularly in rural and coastal communities.

In a push to promote green industries, the loan will also support the establishment of a national livestock traceability system. This system is crucial for advancing sustainable agriculture, opening up premium markets for Costa Rican products, and strengthening the nation’s ecotourism sector. The overarching strategy is to create a scalable model where conservation generates sustainable income and employment, with a specific focus on ensuring the inclusion of vulnerable groups such as women and indigenous peoples in these environmental programs.

This new loan reflects the solid collaborative relationship between the World Bank and the Government of Costa Rica, based on trust and a shared commitment to economic growth and environmental protection. As the country transitions to a climate-resilient economy, these initiatives help create sustainable livelihoods and improve job stability.
Carine Clert, Country Manager for Costa Rica and El Salvador for the World Bank

Ultimately, this comprehensive financing package represents more than just a loan; it is an investment in a resilient and prosperous future. By intertwining fiscal discipline with environmental innovation, Costa Rica is reinforcing its commitment to a development model that does not force a choice between economic health and ecological preservation. This strategic partnership with the World Bank aims to create a virtuous cycle where sound public finances enable sustained investment in the natural capital that underpins the nation’s economy and identity.

For further information, visit worldbank.org
About The 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 comprises two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The World Bank is a component of the World Bank Group and is dedicated to reducing poverty and supporting development worldwide.

For further information, visit hacienda.go.cr
About The Ministry of Finance of Costa Rica:
The Ministry of Finance (Ministerio de Hacienda) is the government ministry of Costa Rica responsible for managing the country’s public finances. Its duties include formulating fiscal policy, collecting taxes through its various directorates like the General Directorate of Taxation, managing the national budget, and overseeing public debt. The ministry plays a central role in ensuring the economic stability and financial health of the nation.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal practice, Bufete de Costa Rica is anchored by a profound dedication to integrity and the highest standards of professional excellence. The firm leverages its rich history of advising a diverse clientele to champion legal innovation and actively contribute to the community. Central to its philosophy is the mission to empower the public by making complex legal concepts understandable and accessible, thereby fostering a more knowledgeable and capable society.

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