Colombia’s New Government Wins Historic $9 Billion CAF Offer

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Or sign-in if you have an account.(Bloomberg) — The Latin American development bank CAF plans to provide President-elect Abelardo de la Espriella’s administration with an unprecedented $9 billion in financing over the next four years, easing pressure on the nation’s strained public finances. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe multilateral lender will help finance projects in areas including energy, infrastructure, public security and programs aimed at reducing inequality, CAF President Sergio Diaz-Granados said Friday. “We are going to support the president with actions and programs,” Diaz-Granados said, speaking alongside De la Espriella in Antioquia province in western Colombia. “This is the first step on a long road, and Colombia can count on CAF to set an example and help work miracles.”Diaz-Granados didn’t elaborate on the terms of the financing. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSome of the nation’s sovereign dollar bonds rose after the announcement, with notes due in 2041 rising by 0.3 cent on the dollar to trade above 91 cents, according to indicative pricing data compiled by Bloomberg.De la Espriella, who takes office on Aug. 7, will inherit a wide budget deficit, rising debt-servicing costs and heavy financing needs. His vice president-elect, Jose Manuel Restrepo, traveled to Washington last week to meet with investors, multilateral institutions and US officials, presenting the incoming administration’s plans to restore economic growth and put the country’s public finances on a more sustainable path.Investors are closely watching how Colombia intends to finance its fiscal adjustment and manage upcoming debt obligations after years of widening deficits, and the suspension of its fiscal rule, or balanced-budget act. “This is a meaningful amount, and other multilaterals may follow suit,” William Snead, a strategist at Banco Bilbao Vizcaya Argentaria in New York, said. “This funding approach could reduce Colombia’s need to issue hard-currency bonds.”Earlier this week, CAF approved a financing package of $2 billion aimed at boosting development in eight countries of the region.—With assistance from Nicolle Yapur.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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