Tuesday, February 3, 2009

Even Costa Rica has a stimulus plan...

Here it is (note that it is not 800 pages long...just a 4-pt plan):


  1. Families

§ 15% increase in pensions of the noncontributory schemed of the SSA.

§ Week-end diet for boys and girls in the 37 least developed counties of CR (benefiting 16K families)

§ Increase from 132K to 150K on “Avancemos”-type scholarships for students

§ Temporary 2% interest rates reduction on housing loans of less that 50M colones

§ Automatic decrease on bus rates according to fuel prices

  1. Workers

§ Introduction of new work modalities:

o WFH (estimate of 100K colones monthly saving per worker under this system)

o Job protection during crisis and

o New kinds of work shifts: modernization of Labor Code to include new modalities like 4-3 schemes or season work.

§ Technical training to workforce with a monthly support of 200K from INA to population in risk of losing job, provided employer pays SSA and does not lay them off.

§ Freeze of interest rates in education loans

§ $1.4B in Public Works (funding coming from 2 loans that need Congress approval, 10% of funds will be available for this Administration).

  1. Companies

§ Credit loans to SMEs (222.700M colones)

§ 2% interest rate reduction on SME loans

§ During 2009 (extendable to 2010), rapid depreciation of assets

§ Certainty to free trade zone regime: CRG working on a FTZ law reform that will not only allow a means to face the crisis, but also comply with our international commitments before the WTO.

  1. Financial sector

§ $117,5M injection to State banks

§ $500M IDB loan

I am particularly interested in item 2.1.2 "Job protection during crisis"...hmmmm...

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