According to Blu Radio, at payment will come out of a debt quota that the country has with the multilateral organization for up to $ 17.2 billion, an amount that was increased thanks to the solidity of Colombian economic policies.
“It is the first time that Colombia or any country with this line of credit makes use of the resources,” said Juan José Echavarría, manager of the Bank of the Republic, after a meeting in which the Issuer decided to lower its interest rates again in order to give the economy a boost.
According to the manager quoted by the station, this “rescue” money from the International Monetary Fund is not subject to credit conditions or specific programs; However, Colombia is obliged to pay during the five years following the disbursement of resources.
Alberto Carrasquilla (Minister of Finance), did not give details about the sectors in which the resources will be invested, But it did give clues that they will most likely be used to finance the economic needs that the COVID-19 pandemic has left in the country.
What is Colombia’s debt quota with the IMF?
This line of credit, according to the International Monetary Fund, It is designed to provide financing to member countries with sound monetary, fiscal and financial policy frameworks., in case of external risks or contingencies.
Colombia requested the extension of the credit quota with the IMF taking into account the impact of COVID-19 on its economy, mainly on oil prices and export earnings, in addition to weaker aggregate demand, lower tax collection and greater spending needs in health, workers, companies and vulnerable population.
“The increase in the credit line will help the country hedge against external risks, reinforcing its international liquidity position and providing additional resources to meet financing needs in a highly uncertain environment,” said the Ministry of Finance in a statement.