Colombia: request for arrangement under the flexible line of credit and cancellation of the current arrangement – press release; staff report; and Statement by the Executive Director for Colombia
May 2, 2022
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Colombia’s very strong policy frameworks and comprehensive policy response to the pandemic have underpinned the resilience of the economy. With stronger-than-expected growth last year, fiscal deficits and public debt are falling faster than expected, and the fiscal framework has been reactivated with a new fiscal rule and debt anchor. Further monetary policy tightening is expected to drive inflation towards the central bank’s inflation target by mid-2024. Effective credit support measures in the financial sector are being phased out and, as noted in the recent FSIP, financial sector supervision and regulation have been strengthened since the previous service assessment. Overall, the authorities remain committed to maintaining their very strong policy framework, as evidenced by the steps taken to normalize policies after the pandemic crisis. The political assurances on the political continuity of the main candidates provide a necessary guarantee for the proposed arrangement.
National Report No. 2022/129
May 2, 2022