Financial Turmoil: Colombian Finance Minister Resigns Amid Reform Rejection

Colombian Finance Minister Diego Guevara resigned amid tensions over budget cuts and a defeated labor reform led by President Gustavo Petro. His departure highlights concerns about the nation's fiscal stability. German Avila is expected to succeed him, amid fears of increased political and economic instability.

Diego Guevara, Colombia's Finance Minister, resigned on Tuesday following disputes over budget reductions and just after lawmakers rejected a labor reform pushed by President Gustavo Petro.

Guevara's departure, just over three months into his role, raises questions about the country's economic future. A presidential source cited disagreements on budget cuts as the catalyst for his resignation.

Guevara's successor, German Avila, currently leading Grupo Bicentenario, faces skepticism over his capability to steer Colombia's public finances effectively. This transition, alongside volatile cabinet changes, heightens concerns over potential political and economic instability.

(With inputs from agencies.)