Colombia’s government to issue more bonds to fund a higher-than-predicted fiscal deficit in the national budget, reported international news-wire, Reuters, on Monday.
Colombia’s treasury will now issue around $17.5 billion US dollars worth of government bonds, up from the $16 billion initially targeted for this year. Expectations for 2014’s fiscal deficit were revised up 0.1% to reach 2.4% of GDP.
8 years of fiscal deficits
The move follows the release of central bank data indicating that Colombia’s external debt reached an all-time high of almost 24% of GDP in October 2013. A deficit refers to the balance of government spending and money raised in taxes for the financial year, while the country’s debt is given by the accumulation of years of fiscal deficits.
Colombia has not seen a fiscal surplus since pre-crisis 2006, when the government earned just over 0.2% more than it spent, according to data compiled by financial data website, Trading Economics.
Higher borrowing targets for 2015
In its release of fiscal goals for 2015, the government maintained its goal of external borrowing for 2014 at $4 billion, reported Colombia’s La Republica newspaper.
Colombia will further increase the issuance of its debt in 2015 compared to this year, said the Ministry of Finance’s Medium Term Fiscal Framework report, released on Monday.
The treasury aims to issue just over $18 billion dollars of government debt next year.
- Colombia aumenta meta de emisión de deuda interna de 2014 en revisión de plan financiero (La Republica)
- UPDATE 1-Colombia’s revised fiscal targets for 2014 (Reuters)
- MARCO FISCAL DE MEDIANO PLAZO (Ministry of Finance)