Colombia’s finance minister is to meet representatives of credit ratings agencies in the United States on Monday to present Colombia’s recent economic performance in the hope of attaining an investment grade, LaNotaDigital reported Thursday.
In one of the meetings, Finance Minister Juan Carlos Echeverry will meet with representatives from Moody’s and Fitch and provide an update for them on the economic situation in Colombia, highlighting the country’s recent reforms and improved financial performance in the hope that they deem Colombia to be an ideal location for long-term investment.
In March, ratings agency Standard and Poor’s awarded Colombia a BBB-, meaning that the country has optimum conditions for growth and expansion. Moody’s current qualification of Ba1 means that the quality of credit is questionable and leaves Colombia just one rating below investment grade.
Caracol Radio reported Thursday that, according to Echeverry, the economy is currently doing very well, tax revenues are on the right track, reforms are going through congress, and the fiscal sustainability bill is one step from being approved.
The minister said he would also make the most of his time in the U.S. to sign an agreement with the IMF for $6.1 billion in credit. He stated that this money would be a financial “cushion” for the country in the case of a serious emergency, adding, “This is a spare tire in the case of a flat but we are not expecting a flat.”
He said that this would also increase Colombia’s international reserves in real terms which means that the country could have a total of $36 billion in reserves.