The Colombian Executive led by President Abelardo de la Espriella expects to obtain $11 billion in new financing and execute debt swap operations with the aim of covering its fiscal requirements for the remainder of the fiscal year, Demócrata reported. The Director General of Public Credit and the National Treasury, César Arias, would have conveyed these plans to various investors, detailing the financial strategy of the new Administration.
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Colombia central bank chief Leonardo Villar said on Wednesday that the bank's models suggest inflation in the country will approach the 3% target by mid-2028, Reuters reported. In early August, the central bank's technical team saw inflation at 4.3% at the end of 2027, up from a previous projection of 3.7%, according its quarterly monetary policy report. Latin America's fourth-largest economy has failed to meet its inflation target since 2021, and as of the end of July, annual inflation stood at 6.03%.
Ecuador's government on Thursday said it was raising tariffs on imports from its larger neighbor Colombia to 100% from a prior level of 50%, citing Colombia's alleged failure to implement border security measures, Reuters reported. "After confirming Colombia’s failure to implement concrete and effective border security measures, Ecuador is compelled to take sovereign action," the government said in a statement. Ecuador said the tariffs would take effect from May 1.
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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.
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Colombia faces mounting uncertainty after the government's decision to withdraw from the central bank's board cast doubt on future decisions following a 100-basis-point interest rate hike, analysts warned on Wednesday, Reuters reported. Finance Minister German Avila, the government's representative on the central bank board, announced his withdrawal from the body on Tuesday with the support of President Gustavo Petro. The move followed the board's decision to raise the benchmark interest rate to 11.25% in a split 4-2-1 vote.
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.
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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.
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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.
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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.
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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.
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