IMF approves $8.1 bln flexible credit line for Colombia

Earlier this month Colombia's President Gustavo Petro said he would look to extend the repayment period of the credit drawn down in 2020 with the IMF in a bid to free up funds for social spending. Colombia's economy grew a lackluster 0.6% in 2023, versus a more animated expansion of 7.3% in 2022.

The International Monetary Fund on Friday approved a flexible credit line worth $8.1 billion for Colombia, which will not use the loan immediately but could draw it down during a crisis.

The sum is less than an FLC worth $9.8 billion agreed between Colombia and the lender in 2022, which the country has not used. "Colombia qualifies for the FCL by virtue of its very strong economic fundamentals and institutional policy frameworks and track record of implementing very strong policies and commitment to maintaining such policies," the IMF said in a statement.

Colombia took some $5.4 billion from a similar credit arrangement in December 2020 to tackle the coronavirus pandemic, of which it has already repaid $650 million. Earlier this month Colombia's President Gustavo Petro said he would look to extend the repayment period of the credit drawn down in 2020 with the IMF in a bid to free up funds for social spending.

Colombia's economy grew a lackluster 0.6% in 2023, versus a more animated expansion of 7.3% in 2022. The technical team of Colombia's central bank currently expects the country's GDP to grow 1.1% this year, up from a previous expectation of 0.8%.

 

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