IMF closes its office in Costa Rica

The evolution of the relationship between Costa Rica and the International Monetary Fund is believed to be the main reason for the closure of the agency’s office in that country.

Speculation regarding the closure of the facilities has not been long in coming. However, the IMF has noted that this represents “a change in the dynamics of the relationship between the multilateral organization and the Central American nation, and potentially a sign of the new direction the IMF is taking in the region.”

The IMF has been in Costa Rica for decades, “working closely with the government to implement adjustment programs and economic reforms. These missions, for the most part, have been aimed at addressing macroeconomic imbalances, such as the fiscal deficit and public debt.”

Costa Rica has made progress in fiscal and economic stability and implemented the necessary reforms to strengthen its public finances. Consequently, the IMF believes it is time to move to remote technical assistance, without the need for offices.

This will allow the international organization to “optimize its resources and focus them on specific missions and analyses.” It is undoubtedly a sign that the institution is “reassessing its operating model worldwide. In a context of technological advances and greater global interconnectedness, the need for physical offices in each country has become less critical.”

With this new approach, “the IMF can now send specialized missions as needed, rather than maintaining a permanent resident team. This gives the institution greater flexibility to respond to regional economic dynamics more quickly.”

M.Pino

Source: cointelegraph

(Reference image source: aboodi vesakaran on Unsplash)

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