Colombia: support for negotiation of financial services

Through a technical cooperation agreement with the Ministry of Finance, the CAF will provide partial finance for technical support for the negotiations on financial services in the framework of the Free Trade Treaty with the United States. The CAF and the Ministry signed another agreement to promote access to the banking system for low-income sectors.

The agreement for US$15,800 will help the Colombian government to design its FTT negotiation strategy on financial services. The other for US$13,200 will back a study on access to the banking system, microcredit and other financial instruments.

CAF President Enrique García, and Colombian Minister of Finance and Public Credit Alberto Carrasquilla signed two technical cooperation agreements in Bogota. The agreement for US$15,800 will help the Colombian government to design its FTT negotiation strategy on financial services. The other for US$13,200 will back a study on access to the banking system, microcredit and other financial instruments.

Enrique García emphasized the strategic importance of the two initiatives. “These projects offer tools that will make the Colombian financial sector more competitive and strengthen its capacity to serve the credit needs of all the population.”

The Ministry of Finance and Public Credit, as member of the Colombian negotiating group on free trade in financial services, needs to achieve a consensus on the country’s negotiating position on this issue. This involves identifying, preparing, coordinating the various areas that the Treaty must cover and finally negotiating with the other party.

With the support from the CAF, the Ministry, through consultation, will identify sensitive issues, determine defensive and offensive interests, establish the possible impact of the measures agreed with national industry, and design negotiating strategies.

The agreement between the Ministry of Finance and the CAF on access to the banking system will identify the regulatory requirements, and the conditions of supply and demand for the development of microcredit and other financial services for these sectors. In this context, the Colombian government and the banking sector are taking actions to design and identify medium- and long-term policies to facilitate conditions of access to the banking system for low-income sectors.