President Petro insists that Banco de la República substantially lower interest rates to reactivate the economy and private enterprise investment

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Bogotá. – The President of Colombia, Gustavo Petro Urrego, pointed out that there are several factors that threaten to decrease public investment, for which he indicated that the Bank of the Republic must substantially lower the interest rate.

In addition, Petro defended his thesis of asking the International Monetary Fund (IMF) to refinance Colombia’s debt, taking into account that «the fall of the non-deductibility of royalties in the Tax Reform that leaves it in half, the payment to the gasoline fund that is made with the budget and the fundamentalism of the Fiscal Rule threatens to substantially decrease public investment when, precisely, private investment has stagnated», he said.

The Colombian president stated that the country requires more public investment to reactivate the economy, which is why the real reduction of rates by the Issuer is necessary.

It is worth mentioning that yesterday, from Caucasia, Antioquia, Petro said that he will ask his Finance Minister, Ricardo Bonilla, to ask the IMF to refinance the debt.

However, the former head of the Treasury portfolio, José Antonio Campo, said about the refinancing that «it would be a crass mistake to change it for a long-term line of the Fund, which would have conditionality (like Argentina’s), would be more expensive and would give the signal that the country’s record of macroeconomic strength is being lost».

This, taking into account that, «the flexible credit line with the International Monetary Fund (IMF) would be more costly and would give a signal that the country’s record of macroeconomic strength is being lost».