Category: Colombia

Citibank Colombia is to issue peso-denominated bonds worth $250 million. As at the end of October Citibank Colombia had assets worth $1.48 billion; earnings for the year to October were up 18.3% on 2004 to $41.9 million.

Citibank Colombia is to issue peso-denominated bonds worth $250 million. As at the end of October Citibank Colombia had assets worth $1.48 billion; earnings for the year to October were up 18.3% on 2004 to $41.9 million.

Colombia’s central government deficit fell slightly in the first nine months of the year compared with last year. The deficit fell from 2.9% of GDP in 2004 to 2.8% of GDP. The government had targeted a deficit for the year of 5.5%, something it now expects to beat. It said the deficit drop was thanks to higher tax revenues and more efficient spending.

Bancolombia, Colombia’s largest bank in terms of assets, has offered to buy Compañía de Financiamiento Comercial (Comercia) in a deal worth over $19.4 million. Comercia is the eighth-largest financial institution in asset terms.

Bancolombia, Colombia’s largest bank, in terms of market share, is planning to form the country’s largest leasing company when it merges Leasing Colombia and Suleasing. The new entity, which is still without a name, will start operations in the first half of 2006. It will have assets of $1.3 billion. It will become the third-largest leasing company in Latin America after Itauleasing and Safra Leasing of Brazil.

Colombian bank Colpatria has just raised $47 million through the sale of 3 billion shares, or 10% of the total stock, by its majority shareholder Inversiones Abacol. Part of the money raised will be used to settle a debt with Colombia’s deposit insurance agency Fogafin.

Colombia’s President Alvaro Uribe has formally announced that he will be running for reelection in next year’s elections. This follows a process, recently completed, to change the country’s constitution thereby allowing him to stand for a second term. Despite a slide in the polls lately, Uribe can still boast the highest approval rating of any president of Colombia.

A new poll carried out in Colombia shows that President Alvaro’s Uribe’s voter approval rating has slipped to 69% from 76% in August. Presidential elections are set to take place next May. On 11 November Colombia’s Constitutional Court cleared the way for Uribe to run for a second term in the upcoming elections.

Colombia is planning to corporate tax from 38.4% to under 30% by the end of the year. Currently, Colombia has one of the highest rates of corporate tax on the continent. The move is aimed at boosting investment.

Colombia’s Central Bank has left its benchmark lending rate unchanged once more. The rate of 6.0%, reduced in September from 6.5%, is the lowest in two years. Meantime inflation rose to 5.3% in the 12 months to October.