Amid protests Costa Rica bows out of IMF talks

 amid protests

After a week of protests Costa Rica withdrew from talks with the International Monetary Fund (IMF) on Sunday, October 4,) and president, Carlos Alvarado called for a national dialogue after a wave of protests.

Alvarado called on political, business, union and academic sectors to dialogue in search of an economic solution for the country, which has a fiscal deficit of 6% of GDP at the end of 2019 and projected at 9.7% for this year as a result of the economic impact of Covid-19.

Alvarado said: “Understanding the sentiment that exists and the need to take viable actions, the government will not go ahead with its initial proposal” of negotiation with the IMF, criticized by the opposition, majority in congress, for emphasizing temporary taxes instead cuts in public spending.

His message came after the country was hit by roadblocks in various parts of the country in rejection of a negotiation with the IMF.

The protests that began last Wednesday have degenerated into violence in recent days, with several police officers injured while trying to lift the blockades.

“The worst thing is to do nothing, and just wait for a more severe crisis to hit us,” warned the president.