Colombian Congress approves $500m loan from World Bank

Colombia’s Ministry of Finance stated Wednesday that members of the government and Congress had approved a $500 million loan from the World Bank, to finance this year’s budget.

The plan involves a total foreign debt of $1.75 billion, including a $500 million bond issue.

In January Finance Minister Oscar Ivan Zuluaga raised the 2010 predicted budget deficit to 3.7% of GDP, up from 3.6% in December. Colombia has financed its public spending in the face of the global economic downturn by selling bonds on international markets, as well as raising local capital.

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