Colombian Markets Slide as New Government Outlines Major Budget Cuts
The COLCAP index and the peso both fell on Friday as the De la Espriella administration detailed a sweeping fiscal adjustment plan.
Colombia's main stock index, COLCAP, closed at 2,458 on August 29, down about 1.28% and marking a third straight session of losses. The peso also weakened, settling at 3,202.79 per US dollar, roughly 21% below its 52-week high.
The Finance Ministry confirmed plans for a 21.9 trillion peso spending cut, equivalent to approximately US$6.8 billion, alongside what the government is calling an Economic Rescue Law. The announcements have weighed on investor sentiment as markets digest the scale of the proposed fiscal adjustment.
President Abelardo de la Espriella, who took office on August 7, campaigned on a market-friendly platform, but the depth of the proposed cuts has introduced uncertainty. Analysts are watching closely to see how Congress receives the Economic Rescue Law in the weeks ahead.
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Reportado por El Paisa, nuestro corresponsal colombiano.
