Colombia could trim its planned
sales of local TES bonds to reduce pressure on internal markets
as private companies try to issue corporate debt to ward off
the global crisis, President Alvaro Uribe said on Wednesday.
Colombia’s government has already taken measures to ease
the impact of the financial turmoil and has reduced its growth
outlook as industrial output and retail sales slump.
“The finance ministry is considering more measures to keep
pressure off local financial markets,” Uribe said. “One
possible measure is an additional reduction in our program for
TES and corresponding increase in our program to seek resources
in the international financial market.”
The government says it has fulfilled its planned
international capital market financing requirements for 2009.
Colombia this month exchanged $1 billion in short-term debt
for TES bonds due in 2012, 2014 and 2018 as part of an effort
to improve its debt profile and the government already lowered
its TES issuance target by $931 million to $7.9 billion.
TES notes, which are Colombia’s main source of financing
for public spending after tax revenues, are generally seen as a
safe bet for local banks amid scarce credit abroad. (Reuters)