Minister of Finance Ricardo Bonilla discusses IMF debt and economic reactivation in Colombia

Ricardo Bonilla, Minister of Finance.

Photo: Óscar Pérez

From Asofondos, the Minister of Finance, Ricardo Bonilla, stated that the Government of Iván Duque issued emergency decrees during the pandemic with which it went into debt without having the debt quota, including the credit with the International Monetary Fund (IMF), There the Government of Gustavo Petro is making the payments, but without opening a new quota.

On Thursday, President Gustavo Petro assured that he will ask the director of the IMF, Kristalina Georgieva, for an alternative to extend the terms of the credit payments that the country has. The president assured that the government of Iván Duque acquired the loan with the Fund for three years, precisely the years of his Government. “The only country in the world that made that loan because no one else fell for that nonsense and that is why the debt jumps from $75 to $100 billion.”

Also read: Duque Government defended its management after criticism from Petro for IMF debt

Bonilla explained that the president asked him to renegotiate to look for alternatives, since the credit with the IMF is not the only one that the country must pay, but it is short-term and of a high amount. “The country would have to pay $125 billion in 2025. Everything we pay in debt reduces investment possibilities. The debate is, do we pay debt or invest? How do we balance the two? “That is the most important macroeconomic discussion we should have.”

For the 2024 budget, a doubt payment of $95 billion is planned, the conversation is now facing 2025. Bonilla added that in order to promote economic reactivation, investment is needed, hence the need to readjust the credit terms: “ Debt does not reactivate the economy, investment does. The payment of debt leaves the country in good international and national terms, but investment does not occur, we can do both, continue to look good in the international market, but look for resources for investment.”

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The minister also spoke of other types of “debts that are not considered debts,” such as the freezing of energy rates and the fuel subsidy, pointing out that, although the price of gasoline has already been stabilized, the country must pay Ecopetrol. what is owed.

Regarding the pension reform, Bonilla affirmed that the portfolio did present a fiscal concept in pensions that poses limitations. According to the minister, with a threshold of three minimum contributions salaries in Colpensiones, without altering other points of the reform, the savings fund would have resources until 2070, but with a threshold of 1.5 salaries (as proposed in the alternative presentation ) the money would run out in 2051. If the threshold were one salary, “the resources would not be enough to build a savings fund.”

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2024-04-12 16:13:03
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