Costa Rica to propose capital controls to combat hot money flows

SAN JOSE Tue Jan 15, 2013 4:28pm EST

SAN JOSE Jan 15 (Reuters) - Costa Rica will introduce capital control proposals to Congress this week in a bid to tackle a recent surge in inflows, President Laura Chinchilla said on Tuesday.

One proposal will require savings made by large state-run institutions to be made exclusively in public banks, according to an official statement.

Vice President Luis Liberman told a news conference another proposal would raise taxes on the returns generated by government bonds.