Colombia Lifts Capital Controls on Equity

Colombia’s ministry of finance said Monday it has lifted capital controls for foreign investments in equities. Foreigners will no longer have to keep a local deposit worth 50% of their investment in local equities and convertibles for two years. Buyers of local debt, however, are still subject to the deposit, says the ministry, which described capital controls as “transitory” measures. Controls, which were originally ratified June 2007 by congress, have been widely criticized. However, the government has been under pressure locally to stem peso appreciation. Colombia’s main stock indices rose Monday, with Colcap gaining 3.31%, Col20 rising 2.87%, and the IGBC up 3.56%.