In September 2023 compared to the same month of 2022, the percentage of Colombia’s Central National Government debt in fixed rate decreased from 93.94% of

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Bogotá.-Historically speaking, the debt of the Colombian Central National Government (CNG) has been, in a large proportion, in fixed rate. Since there are records from the Ministry of Finance (2004), the percentage has never fallen below 78%.

Since March 2009, in fact, it remained above 90% until the end of 2015 when it began to fall to levels of 89% and 88%, a trend that continued until the close of 2019.

With the arrival of the Covid-19 crisis and the implementation of the Government’s strategy of carrying out public debt management operations aimed at reducing the exposure of the Government’s obligations to variable rates, the percentage has not fallen below 90%.

This intention of the Government to convert variable rate credits to fixed rate marked a first stage in the process of reducing the exposure of the debt to market fluctuations, which was later complemented with the foreign exchange hedging operations, which are still in force.

However, in September 2023 compared to the same month of 2022, the percentage of Colombia’s Central National Government debt at fixed rates dropped from 93.94% of the total to 93.67%.

In contrast, the proportion of obligations in variable rate rose from 6.06% to 6.33% in this same period. It should be noted that, month-on-month, the percentage of fixed-rate debt decreased by 0.30 percentage points and variable-rate debt, on the other hand, increased by the same 30 basis points.

In the case of domestic obligations, 100% is in fixed rate: 60.82% in pesos and 30.42% in Real Value Unit (UVR).

With respect to the Government’s external debt, 83% is in fixed rate as of the ninth month of this year, when 12 months ago it was 85%; while 17% is in variable rate, when in September 2022 the percentage was 15%.