The Colombian economy contracted 9% in the third quarter compared to the same period in 2019, and entered a technical recesion. However, the fall is less than the -15.8% recorded between April and June, according to the National Administrative Department of Statistics (DANE). The sectors of trade, accommodation and food services (-20.1%), construction (-26.2%) and mining and quarrying (-19.1%) were the most affected, whislt agriculture, financial services and real state had positive variations of 1.5 %, 1.5 % y 1.8 %, respectively. So far this year, the Colombian economy has contracted by 8.1%. The last time Colombia experienced a recession was in 1999 with a negative growth of 4.5%, due to excessive public and private debt and a mortgage crisis.
Colombia will sign contracts with two Canadian oil and gas companies for four onshore blocks after no counteroffers were made during the country’s most recent energy auction. CNE Oil & Gas, a subsidiary of Canacol Energy Ltd , and the Colombian arm of Parex Resources Ltd each placed two bids in an initial auction at the end of last month, worth an estimated $40 million in total.
Colombia´s National Development Finance (FDN) approved the issuance of hybrid bonds for up to $ 686 million. These bonds will replace the subordinated bonds issued by the FDN in 2016 (for the same amount). As per their definition, these type of bonds are not only a debt mechanism, but they can also become part of the capital of the entity. This is the first issue of the so-called hybrid bonds by an entity attached to the Colombian Ministry of Finance.
Colombian cocoa registered 10% growth in output during the cocoa year that began in October 2019 and ended in September 2020, with a production of 64,281 tons of dry beans, the second highest after 2016-2017, when 64,325 tons were registered. 52,000 colombian families derive their livelihood from this crop in the country.
State owned Ecopetrol announced its subsidiaries, Cenit and Oleoducto Bicentenario de Colombia S.A.S., have reached an agreement with Frontera Energy Corporation for the joint filing of a petition for a binding settlement which, upon completion and approval by the competent Colombian court, will resolve all the disputes pending among them related to the Bicentenario Pipeline and the Caño Limón – Coveñas Pipeline.
Through national Decree 1457 of 2020, the Colombian Ministry of Finance set the regulatory framework for the tax on dividends in the Colombian Stock Exchange. The new regulations introduce changes when dividends are attributed with a charge to profits generated before 2017 and the payment or credit is made to the account after the taxable year of 2016.
Colombian president, Iván Duque, pointed out that the reconstruction of about 98% of infraestructure in Providencia is expected to be completed in an average of 100 days. The Government will invest $8 million for the storm sewer system in San Andrés and $41 million to rebuild destroyed infrastructure in the islands.