Costa Rican Government Proposes Measures to Protect Workers and Companies From Financial Effects of Covid-19

The Government of Costa Rica has presented different measures to protect workers and companies of the financial effects that coronavirus (Covid-19) brings along.

An extension of three months in the payment of the value added tax, income tax of companies, and customs taxes, a significant reduction in the monetary policy to lower the costs of credits and an insurance for the tourism sector to face the quarantines imposed by the coronavirus, are some of the financial measures announced to face the effects of Covid-19.

“Covid-19 is putting us to the test as a society. For this reason we want to give all Costa Ricans the absolute certainty that as an economic team we will be using all the available tools in our reach to alleviate the cash flow in the homes and companies, to prevent the destruction of employment and assure the availability of resources for the optimal sanitary attention of people”, explained María del Pilar Garrido Gonzalo from the Ministry of National Planning and Economic Policy (MIDEPLAN).

Garrido insisted that Covid-19 must be understood as a public health challenge and that it will have important repercussions in the global economy, “For this reason, the President has instructed the Economic Council to offer an immediate and coordinated response to anticipate and mitigate the social economical effect of the pandemia”, she stated.

President Carlos Alvarado, expressed that “the objective of this first phase of measures of attention and economic support is to alleviate those small and medium size businesses and protect workers that are affected by the economic impact of the Covid-19”.

Some of the measures proposed include:

Job Protection:
The President will meet with the Board of Directors of the Social Security Service (Caja-CCSS) to implement temporary needed measures in favor of companies that maintain their current payroll.

Alleviate the Cost of Credits:
The Central Bank and the National Supervision Council of the Financial System will evaluate actions towards improving credit conditions for homes and companies.

Alleviate payment of insurance and special covering for tourists:
The Executive President and the Board of Directors of the National Insurance Institute will propose to the Insurance Superintendence a preferential rate in the labor risk insurance policies for companies with under 30 employees. A quarantine insurance for tourists that come to the country to contribute with the tourism sector to face the contingencies caused by Covid-19. Among others.

Other measures will be announced in the upcoming days.