Wednesday , July 28 2021

Agencia Fitch Ratings confirmed the BBB rating of Colombia

Writing economics

The organization underlined the achievements in the reduction of the fiscal deficit, debt stabilization and the country's economic growth.

Fitch Ratings confirmed Colombia's long-term local and currency rating, leaving it at BBB level with a stable outlook.

Read also: The monetary fund supports the financing act

The organization underlined the government's commitment to achieve the target of a fiscal deficit of 2.4% of GDP by 2019. The executive plan is to achieve the goal through financial law and, if necessary, by cutting costs

Regarding the level of general government debt, Fitch noted that he managed to stabilize around 41% of GDP, although he said that additional fiscal adjustments are needed to restore debt to long-term reductions.

Fitch spoke about consolidating a positive economic growth trend towards a potential average of 3.5%, after three years of low performance, "largely due to the growth of non-traditional exports, growth in consumption, the largest investment and the best expectations for the oil sector".

In addition, the agency emphasized the country's better position on the external front thanks to the reduction of the current account deficit, lower borrowing needs, the level of international reserves and the protection offered by the credit line. Flexible credit with the International Monetary Fund.

The Ministry of Finance has ensured that this decision reflects the stability, consistency and credibility of government macroeconomic policies. In a statement, the ministry announced that the agency expected the government to continue its monetary and fiscal policy, including its commitment to fiscal rules.

Read also: The thorn path of financial law

He also said that for Fitch is the key to generating new revenues thanks to the Finance Act, "which will allow to achieve fiscal goals, avoid budget cuts in investments and lead to lowering the level of indebtedness in the medium term."

Source link