Colombia’s banking sector agreed to invest $13.6 billion in sectors that are expected to grow the economy, President Gustavo Petro said Tuesday.
The agreement came after a series of meetings between representatives of the financial sector and government officials who sought banks’ increased commitment to job creation.
The bank agreed to the investment boost after the president threatened to increase forced investment rates.
The increased investments will become available in the coming 18 months for specific economic sectors through credit, according to the agreement.
These sectors are expected to both grow the economy and create jobs.
Investments per sector
The president stressed the importance of more easily available credit for small businesses that have historically created most jobs.
A woman who manufactures shirts, a pineapple producer, an association of masons, a single mother in a poor neighborhood or a small builder in Colombia will be able to receive much more credit than was previously allocated.
President Gustavo Petro
In order to guarantee the banks’ compliance with the agreement, Petro vowed to create a high-level commission to monitor the capital flows into each sector.
This commission will continue to meet with banking representatives in the coming year and a half.