In Costa Rica, Congress on Monday approved a reform that would cut the salaries of public employees, a prerequisite for the country to comply with the terms of the agreement with the International Monetary Fund (IMF) for borrowing $ 1.78 billion.
After three years of negotiations and reactions, despite strong resistance from the unions, the measure will drastically reduce the salaries of civil servants in particular.
It employs about 280,000 people.
According to government estimates, cuts in public sector wage costs will save $ 600 million annually.
The measure is part of the austerity program of outgoing President Carlos Alvarado, which is being implemented in order for the country to proceed with the fiscal adjustment proposed by the IMF in January 2021, as the country is finding it difficult to overcome the economic crisis exacerbated by the new coronary pandemic.
SOURCE: AMPE
Source: Capital
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