The downgrade of Colombia’s rating to BB- by Standard & Poor’s (S&P) marks a further deterioration in the country’s risk perception, particularly driven by its high fiscal deficit, ColumbiaOne.com reported. The decision reflects doubts about the strength of its public finances and raises the cost of financing its debt in international markets, although it stabilizes its outlook going forward. The announcement comes amid tensions between the government of Gustavo Petro and credit rating agencies, which he has openly criticized.

Colombia's central bank raised its benchmark interest rate by 100 basis points to 10.25% on Friday, its ​first hike in nearly three years and a larger move than most ‌analysts had expected, as policymakers pointed to rising inflation pressures, a sharp jump in inflation expectations and mounting fiscal and external risks, Reuters reported. The increase was approved by a divided seven-member board: four directors voted for the 100-basis-point hike, two voted for a 50-basis-point cut and one backed holding the ‌rate unchanged, according to the central bank's statement.

Colombia’s corporate regulator has ordered provisional steps to protect the assets and operations of several Canacol Energy affiliates as part of ongoing insolvency-related proceedings, BNAmericas.com. The move applies to Canacol Energy Colombia, CNE Oil & Gas, Cantana Energy’s Colombia branch and CNEOG Colombia, according to a regulatory filing on Friday. “With the precautionary measures decreed, we ensure alignment of national regulations with international standards, without violating public order or creditor rights,” said Superintendency of Companies chief Billy Escobar.

Chiquita Brands, the world’s largest banana producer, has engaged investment bankers to conduct a review of certain assets as the company seeks to move forward from an adverse legal judgment stemming from past operations in Colombia, WSJ Pro Bankruptcy reported. Chiquita is working with Houlihan Lokey to examine certain business lines, conduct valuation analysis, and assess options for acquisitions, divestitures, and other combinations.

Colombia unexpectedly halted a series of interest rate cuts that began in 2023 as policymakers fret about the worsening fiscal outlook, a large minimum wage hike and tariff threats from US President Donald Trump, Bloomberg News reported. The central bank kept its benchmark interest rate steady at 9.5% in a split decision, Governor Leonardo Villar said after the meeting. Eight economists in a Bloomberg survey correctly predicted the move while 24 had forecast a quarter-percentage point reduction.

After announcing an acquisition deal with investors from the US and UK to resolve its bankruptcy process, WOM Colombia is now planning to begin deploying 5G networks, BNAmericas.com reported. “We will be deploying [5G] infrastructure in the second half of the year,” said WOM Colombia CEO Ramiro Lafarga. WOM acquired spectrum in the 3.5GHz band in December 2023 but has not yet initiated the network deployment. The company paid approximately US$74mn and committed to connecting 3,180 schools and establishing 24 base stations with 4G coverage along primary and secondary roads.

Colombia’s central bank unexpectedly slowed its monetary easing campaign as fiscal concerns are weakening the nation’s currency and adding to inflation risks, Bloomberg News reported. The seven-member board voted to lower the benchmark rate to 9.5%, Governor Leonardo Villar said after their meeting Friday. The move was forecast by only one of 30 analysts surveyed by Bloomberg. All the others predicted a cut to 9.25%. The decision was split, with five board members backing the cut of 25 basis points, one voting for 50 basis points and another for 75 basis points.

Colombia’s finance chief has been hit with fresh accusations in an alleged corruption scandal, adding to complications for President Gustavo Petro just as the government tries to navigate a deepening fiscal crisis, Bloomberg News reported. Finance Minister Ricardo Bonilla, who has just a month to secure approval for higher taxes meant to cover a 12 trillion peso ($2.7 billion) shortfall in next year’s budget, is now facing significant opposition in Congress, with lawmakers calling for his resignation.

Colombian lawmakers have lifted some restrictions on government spending in a controversial decentralization bill that’s already stoked concern among investors, Bloomberg News reported. The constitutional committee of Colombia’s lower house removed a requirement that the bill, which aims to transfer as much as 39.5% of central government revenue to regional authorities by 2039, must align with the government’s mid-term fiscal framework.