He National Government announced the repurchase of several of its Global bonds In circulation with cash, in the task of modernizing its financing plan following the high concern for the fiscal deficit, according to ‘Bloomberg’.
And it is that with this new public acquisition offer, they are sought 2030, 2031, 2032, 2041, 2042, 2044, 2045, 2049, 2051 and 2061according to the National Government. This is not conditioned to minimal participation in any of the series.
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The measure comes after the Ministry of Finance and Public Credit He will announce in July his intention to obtain up to 10,000 million dollars in bank credits called in Swiss francs to use these fund to repurchase some of the maturities with a greater discount. This way, The government seeks to reduce financing costs and debt ratio on the economy.
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However, no additional information about these loans has been announced, according to ‘Bloomberg’.
(Keep reading: Debt management in government would already be impacting the private sector).
“Despite some doubts about the volume of the repurchase and the source of definitive financing, this should be a positive technical anchor for the Colombian Eurobones curve. We would not surprise us that some loans were announced in the next few days“He said Jason Keene, Barclays strategistfor the same financial means.
The country’s bonds were among the best performance in emerging markets on Monday. For example, expiration titles in 2061 rose 1.7 cents per dollar to negotiate 56.5 cents, according to indicative price data collected by ‘Bloomberg’. However, its impact could be limited, according to Pedro Quintanilla-Dieck, UBS strategist.
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“While this approach should continue to support the longer term bonds and could modestly reduce the costs of sovereign financing in dollars, we do not expect that the upward trajectory of debt loading significantly alters significantly, especially since the latest data continues to point to an increase in fiscal deficits”, He said for ‘Bloomberg’.
In the last week, the government approved an increase in the primary deficit by 2026 to 2% of the gross domestic product, compared to the previous objective of 1.4%. The global deficit, in which the debt service is included, remains at 7.1%, which would make the resumption of the fiscal rule difficult in 2028, suspended for higher expenditure pressures, according to the Autonomous Committee of the Fiscal Rule (CARF).
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