The World Bank approved a new $500 million loan to Costa Rica aimed at strengthening support for the government's budget, according to a statement from the international lender released on Friday.

The loan will support the Central American country's post-pandemic efforts to grow employment and wages and assist small and medium-sized companies.

"While Costa Rica has made much progress in the environmental, economic, and social spheres, the reduction of poverty and inequality remains an ongoing challenge," Carine Clert, World Bank country manager for El Salvador and Costa Rica, said in a statement announcing the new financing package.

The 19.5 year loan includes a four-year grace period, with an interest rate based on the Secured Overnight Financing Rate (SOFR) plus a variable margin in U.S. dollars, the statement added.