Colombia’s central bank board named International Monetary Fund official Leonardo Villar as its new chief, to take up the post from Jan. 3. Villar, who served on the bank’s board between 1997 and 2009, is a former Colombian deputy finance minister. He replaces Juan Jose Echavarria, who did not seek re-election to a second four-year term. His appointment comes as the board is holding is holding its benchmark interest rate at a historic low of 1.75%, in a bid to help the economy after months of lockdown this year to stem the COVID-19 pandemic.
Colombia’s central bank board will hold its 1.75% benchmark interest rate at its final meeting of the year and keep it steady until nearly the end of 2021, taking advantage of low inflation to continue bolstering the economy, analysts said in a Reuters poll on Thursday. It would be the third month in a row the policymakers have held the rate, after cutting 250 basis points between March September amid more than five months of coronavirus lockdown which shuttered businesses and sent unemployment soaring.
The Ministry of Mines and Energy will allocate up to $ 10 million to territorial entities receiving direct royalties (mayors and governorships), for the execution of investment projects that are framed in lines of sustainable economic recovery in the mining sector. The Vice Minister of Mines, Sandra Sandoval, stressed that the Colombian mining sector is an essential engine for the development of the country and its strengthening is necessary for the provision of services to the mining community.
Electro Dunas SAA, a subsidiary of Grupo Energía de Bogotá, carried out its inaugural issuance in the Peruvian capital market by placing bonds for $ 81.7 million) in 2 tranches: $ 18 million at a term of 5 years and $ 63.6 million with a term of 10 years. According to a company statement, the issuance rate for the 5-year tranche was 2.75%, while the issuance rate for the 10-year tranche was 4.59%. This is the first issuance of a corporate bond by a non-financial entity in the local capital market since November 2019.
Colombia´s finance ministry said that it had taken the "first step to entering the bond market for sustainable development" after Congress approved the issue of thematic bonds. After a Senate debate that increased Baa2/BBB-/BBB- rated Colombia´s debt ceiling, finance minister Alberto Carrasquilla said that the government had received approval to issue green, social, bue, or sustainable bonds in line with international standards.