Colombia's Financial Balancing Act: Boosting Debt to Cover Deficit

Colombia is contemplating a significant increase in both its external and domestic debt, potentially amounting to several billion dollars, aiming to tackle a larger fiscal deficit, according to market sources privy to the discussions, as reported on Wednesday.

The government looks to issue roughly $2.4 billion in additional external bonds, complemented by obtaining loans approximating $1 billion through commercial banks. This information comes from sources who engaged in meetings with finance ministry officials.

The strategic move is seen as essential for stabilizing Colombia's economy and ensuring budgetary shortfalls are efficiently managed, aligning with the country's fiscal policies for economic sustainability.

(With inputs from agencies.)