Colombia to tap IMF $5.3 bn loan gradually to prevent peso turbulence

Colombia will bring home the $5.3 billion from its International Monetary Fund loan at a gradual pace to avoid causing turbulence in currency markets and to improve the chances of the nation getting a more favorable exchange rate, deputy Finance Minister Juan Pablo Zarate said. Colombia will be the first country to tap an IMF flexible credit line, a pre-approved source of funding that comes with no conditions on how it’s spent. The finance ministry is targeting a fiscal deficit at 8.2% of gross domestic product this year, narrowing to 5.1% in 2021.

Source: Bloomberg Quint