In his speech on the forum ‘Light at the end of the tunnel?: projections for the economy in 2025’, convened by Corficolombiana, the manager of the Bank of the Republic, Leonardo Villar, said that the approval of the modification of the General Participation System (SGP) will pose a difficult fiscal challenge to the Government and also to the Issuer, which must be very cautious with the decrease in the monetary policy rate.
(You may be interested in: The three messages of tranquility that the Government sent to the Colombian market).
He also assured that the commitments that the central government will have to assume with the approval of said reform will add a factor of uncertainty in the coming years to public finances since they will increase by several points of the GDP the needs for money transfers. the regions.
This legislative act, he warns, makes the fiscal challenge much greater.
(Also: Light at the end of the tunnel?: projections for the economy in 2025).
He also said that the reductions that the Bank of the Republic has made in the interest rate are a consequence of the credibility that inflation is going to go down.
Villar highlighted that the Bank has done its homework consistently and carefully to avoid having to raise rates again later.
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