Colombia must discuss reforms that would guarantee “medium-term fiscal stability” with specific reference to pension reform according to the International Monetary Fund (IMF), reported RCN Radio Thursday.
Luis Cubeddu, Deputy Division Chief of the Regional Studies Division in the IMF’s Western Hermisphere Department, said these reforms are necessary but must be put into place with social consensus.
He said “We recognize that these reforms are not easy, are not simple, but before moving in that direction one has to reach a social consensus.”
The IMF has put forward a series of recommendations about the fiscal management of Colombia and said it is necessary to save “because [the country] is not exempt from being subject to some kind of economic overheating, in other words, growth that goes above inflation.
The issue of pension reform will be one of the central matters to be addressed by the congress of Asofondos, the association of pension fund administrators, being held in Cartagena, Thursday and Friday.
Colombian President Juan Manuel Santos gave the green light to reform in November 2011.