BOGOTA (Reuters) – Colombia’s lower house on Friday approved a pension reform proposed by President Gustavo Petro, marking a victory for the leftist, who has struggled to get lawmaker approval for several of his cornerstone promises.
The government says the reform will strengthen state pension fund Colpensiones, reduce subsidies and increase coverage for those without sufficient savings.
The market has been wary of Petro’s reform efforts and analysts and business guilds had warned of potential impact of the pension reform on capital markets and public finances.
The bill was approved with 86 votes in favor and 32 against.
The Senate previously approved the bill.
(Reporting by Carlos Vargas; Writing by Julia Symmes Cobb)
