Increase in TES issuance for 2016

COLOMBIA - In Brief 23 Aug 2016 by Veronica Navas
A decree was published last Friday, authorizing the Ministry of Finance to increase its TES issuance by COP 8 trillion. The decree mentions that these additional resources are meant to finance outlays for 2016. However this is not the case, as it would imply an increase in the deficit for 2016, which is currently targeted at 3.9% of GDP. The additional TES issuances represent pre-refinancing resources for 2017. The Ministry of Finance has already successfully finished financing for 2016, and TES issuances are consistent with the deficit target of 3.9% of GDP. While this deficit level could increase somewhat (0.1-0.2% of GDP) due to a shortfall in tax collection, as a result of reduced economic activity, there has been no mention of this until now. Therefore Ministry of Finance has simply decided to take advantage of favorable financing conditions to begin financing the budget for 2017.

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