Colombia: $250 million loan to back government economic program

The Andean Development Corporation (CAF) and the Government of Colombia today signed a loan agreement for $250 million to back the economic program that the government is implementing with the aim of permanently strengthening national revenue.

The document was signed by Colombian Finance Minister Alberto Carrasquilla and CAF representative in the country Freddy Rojas Parra. The financial operation is linked to a reform agenda, which guarantees the country´ s economic sustainability and solvency, as a necessary condition for achieving economic growth, with welfare and social equity.

The objectives of the economic support program include contributing to structural solutions by strengthening internal revenue. The CAF reached a consensus with the economic authorities to introduce tax and customs collection mechanisms to strengthen revenue in the long term.

The Corporation´s financial backing will also support the optimization of the use of resources to achieve fiscal sustainability in local and state governments. The operation also contributes to the adoption of public policy tools that would result in a more efficient and transparent allocation and administration of resources.

The loan has a ten-year term with a two-year grace period. The executing agency is the Ministry of Finance and Public Credit.