IMF, US to Provide Technical Help for Colombian Fiscal Reset

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Photo by Nathalia Angarita /Bloomberg(Bloomberg) — Lea en españolTHIS 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 AccountColombia’s incoming government will get technical assistance from the International Monetary Fund and the US Treasury as it seeks to rein in the fiscal deficit, Vice President-elect José Manuel Restrepo said.It is also seeking financing from multilateral lenders to lower borrowing costs. A package under discussion with the World Bank, the Inter-American Development Bank and the regional lender CAF would combine investment financing, credit guarantees and support for the administration’s fiscal adjustment program.“The technical assistance will allow us to refine the fiscal adjustment proposal and the economic growth agenda,” Restrepo said, in an interview in Washington. “They’re a valuable instrument for Colombia at this moment, and we’re going to explore them in detail”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 againThe World Bank’s board last month approved guarantees for a commercial loan of as much as $2 billion that Argentina intends to use to help pay down debt maturities.The IMF declined to comment, while the Treasury didn’t immediately reply to a written request for additional information. Restrepo, a former finance minister tapped by President-elect Abelardo de la Espriella to lead talks with investors and the private sector, met this week in Washington with Secretary of State Marco Rubio, as well as officials from the IMF and World Bank and private investors.De la Espriella, who defeated the candidate backed by leftist President Gustavo Petro, has pledged to crack down on crime, cut taxes and pursue pro-investment policies. He will take office on Aug. 7 with the fiscal deficit above 6% of gross domestic product and public finances under pressure.Petro’s administration struggled to win congressional approval for higher taxes, widening the fiscal deficit and prompting the suspension of Colombia’s fiscal rule last year. S&P Global Ratings cut the country’s sovereign credit rating to its lowest-ever level in April.Restrepo said it is too early to say how big a fiscal adjustment will be required, or what the nation’s the financing needs will be, but signaled that restoring a primary fiscal surplus will be essential to stabilizing debt. De la Espriella’s administration fears that the fiscal deterioration is much worse than official accounts show, he added.Colombian assets have rallied since De la Espriella’s election victory, though investors remain uncertain whether he can deliver the spending cuts he has promised.The new government will host an investment roadshow dubbed “Patria Milagro Week” in New York, bringing together global investors, financial institutions and business leaders to showcase investment opportunities in energy, infrastructure, critical minerals, artificial intelligence and logistics.Colombia and the US, traditionally close allies, will rebuild ties after relations deteriorated between Presidents Donald Trump and Gustavo Petro over the past four years, Restrepo said.The Andean nation also aims to become Washington’s partner in Venezuela’s eventual recovery by serving as a platform for US investment and exports to the neighboring country, he said.(Adds foreign policy plans in final two paragraphs)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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