Colombia Joins Brady Buyback

Colombia is to join Brazil and Venezuela in buying back outstanding Brady bonds as part of its strategy to reduce foreign currency debt obligations. Last year, Colombia’s foreign currency-denominated debt as a share of overall debt fell to 33% from 44% in 2004. Surging commodity-led export revenues will be used to fund the repurchase of up to $4.3 billion of the dollar- and euro-denominated debt instruments maturing between 2006 and 2011. Colombia’s exports earned $21.2 billion last year, a rise of 27% over 2004.