The Colombian Ministry of Finance has already received authorization to request from the International Monetary Fund 3.75 billion special drawing rights, corresponding to $ 5,371 million that are part of the Flexible Credit Line. The term to pay these resources is five years, although the country has a three-year grace period. The amortizations will be made in eight quarterly installments and the interest rate will have the variable special drawing rights (SDR) plus a fixed margin of 1%. Colombia is the first country in history that uses the disbursement of the flexible credit line and the resources will be used to finance appropriations of the General Budget of the Nation of 2020.
The Organization for Economic Cooperation and Development (OECD) released a new report on economic prospects for Latin America. While in June the OECD expected a fall in Colombian GDP of the order of 7.9%, now it sees that the contraction will be 8.3%. However, looking to 2021, the rebound will no longer be 2.8%, but 3.5%. The agency foresees that Colombia's public debt will increase by almost 15 percentage points, reaching over 60% of GDP by 2022, the same perspective that the Government is seeing.
Colombia's current account deficit shrank to 2.7% of gross domestic product (GDP) in the third quarter, the central bank said on Tuesday, while the figure for the first nine months of the year also decreased. The reduction from the 5.2% current account deficit in the third quarter of 2019 was due to lower capital outflows on profits from foreign investment and a smaller foreign trade deficit, the bank said. The deficit for the July-September quarter was equivalent to $1.77 billion, less than the $4.16 billion in the same period last year. Between January and September, the deficit fell to 3.1% of GDP, equivalent to $6.05 billion, from $10.58 billion or 4.4% of GDP in 2019.
Colombia´s external sales in october were $ 2.6 billion, a decrease of 21% in relation to the same month of 2019. Fuels and extractive industries fell 42.7% to a total of $ 1.0 billion. Manufacturing also fell by 22.3%, closing last October at $622 million. Agricultural products, food and beverages grew by 2.8% compared to October 2019, at $634.3 million.
Colombia´s coffee growers federation expects this year’s harvest to be worth some $2.5 billion, the highest value ever recorded. Colombia is set to close 2020 with output of between 14 million and 14.5 million 60-kg bags, despite more than five months of COVID lockdown, and exports of between 12.5 million and 13 million bags.
Fitch Ratings has affirmed Ecopetrol S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB-'. The Rating Outlook for the IDRs is Negative. Fitch has also affirmed the company's National Long- and Short-Term ratings at 'AAA(col)'/'F1+(col)'. The Rating Outlook for the National Long-Term rating is Stable.