Colombia Evaluates Debt Options

Colombia is weighing options to deal with a recently announced funding gap of approximately $1bn. “The government has not yet made a decision as to how it will meet this need, and is evaluating options,” says Viviana Lara, Colombia’s general director of public credit, with an eye on maintaining debt at the same level as stated in its original budget. The sovereign will take a few weeks to make a decision, she explains, and the government will look to minimize the amount of local debt it places to avoid crowding out private issuers who have enjoyed a strong window so far this year. The shortfall is owed to reduced income due to slower growth. The sovereign has completed two liability management exchanges of its local debt, but has no immediate plans to do so with its dollar debt, Lara says.