The Executive Board of the International Monetary Fund approved a request by the Colombian authorities to increase access under its current Flexible Credit Line (FCL) arrangement to 600% of Colombia’s quota, equivalent to $17.2 billion. The two-year arrangement remains in effect until April 30, 2022. The Colombian authorities intend to draw up to 187.5% of quota (about $5.3 billion) from the facility, as part of its financing plan for fiscal year 2020, in response to the COVID19 pandemic. Remaining FCL access will continue to be treated as precautionary.
With a 4 to 3 vote, the board of directors of the Colombian Central Bank made the decision to reduce its benchmark interest rate again to 1.75 percent, the lowest historical level, due to the severe effects of the coronavirus pandemic caused in the economy. "The technical team of Banco de la República estimates that the economy will contract between 6 percent and 10 percent in 2020, "the board said in a statement.
The Colombian GDP will contract by 8.2% in 2020, said Hamid Faruquee, head of the IMF mission for Colombia. Previous forecasts saw a 7.8% decline in GDP. In the case of 2021, the estimate of the IMF's technical team remained that the Colombian economy will grow 4%.
The Quebradona underground copper mining project is being developed by the multinational AngloGold Ashanti in Jericó, southwest Antioquia. If approved by the National Environmental Licensing Authority (Anla), a four-year construction phase would begin, which would give way to the 21-year production phase, during which 5 mm tons of polymetallic concentrate of copper (80 percent), gold and silver would be extracted. The project is expected to generate up to $16,4 mm annually in royalties.
President Duque launched the "Economy for the People", a strategy that seeks to benefit 582,640 productive initiatives and micro-businesses by 2022, with resources for $4.400 mm. It is a comprehensive estrategy covering training, access to markets, development of productive chains and financial inclusion.
In 2019, California and texas imported $400 and $285 mm, respectively, in non-mining goods. Colombia is the fourth largest supplier of crop production for texas; 9.5% of the fresh roses that enter California come from Colombia.