Colombia has secured loan agreements totaling more than $1.2 billion with international lenders, the finance ministry announced. The funds will be allocated towards budgetary expenditures for the current year as well as financing for peace initiatives, the ministry stated.
According to the ministry’s statement on Monday, two loan agreements worth 300 million euros ($323 million) each have been finalized with Germany’s state development bank KfW. The ministry emphasized the importance of these loans in financing projects approved in the national budget and highlighted the collaborative relationship between Colombia and Germany in promoting peace and development.
In addition to the loans from KfW, the finance ministry reached an agreement for a $663 million loan with the Inter-American Development Bank, with $500 million coming from the bank and the remaining $150 million from KfW.
Due to the need for counter-cyclical spending to stimulate economic growth, the government revised its fiscal deficit goal for this year to 5.3% of gross domestic product, up from the previous estimate of 4.5% of GDP. The aim is to bolster growth through increased spending, as explained by the authorities.
($1 = 0.9277 euros)
(Reporting by Nelson Bocanegra; Writing by Oliver Griffin; Editing by Lisa Shumaker)
