SAN JOSE: The World Bank said on Tuesday that it approved a $300 million loan for Costa Rica to help support the Central American nation's efforts to recover from the pandemic fallout.

The loan, which has been granted for 20 years and comes with a four-year grace period, was financed by the International Bank for Reconstruction and Development, the bank said in a statement.

"The country has experienced large social, economic, and fiscal impact since 2020, and currently faces a third, and severe, wave of COVID-19," the bank said.

The financial aid would complement economic and fiscal reforms, including those related to the agreement with the International Monetary Fund, Costa Rica Finance Minister Elian Villegas said.

"It (the loan) supports our efforts to respond to the different waves of the pandemic, while continuing to set the conditions for a strong and sustainable recovery through economic, fiscal, and climate-action reforms," Villegas added.