Costa Rica is a democratic country of five million people which includes ecotourism among its main economic drivers. It has historically been more politically and economically stable than most Latin American nations. Candriam’s proprietary Sovereign Sustainability Model ranks Costa Rica in the top third of all nations. Yet clouds have appeared in the sky. In February of 2023, Costa Rica was added to the EU List of Non-cooperative Jurisdictions for Tax Purposes. 1 For investors, this should suggest at least a review of governance assumptions of the sovereign issuer. Direct dialogue with the issuer, so frequent with corporate equity issuers, is a relatively rare path for investors in sovereigns to take. 

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