Colombia’s foreign debt escalated to USD 198.034 billion by the end of January 2024, an increase of USD 11.179 billion compared to the same month in 2023. This information comes from the National Bank of Colombia, the entity responsible for tracking the country’s external debt.
The National Bank also reports that Colombia’s external debt represents 54.1% of the country’s GDP (Gross Domestic Product). Although minimally, this figure also increased in comparison to last year. Last year, the figure in January was 54%. During 2023, this figure severely fluctuated. In July 2023, Colombia’s external debt represented 56.8% of Colombia’s GDP and the total cost then was USD 190.857 million.
How is Colombia’s external debt split between the public and private sectors?
By January 2024, Colombia’s public sector closed its portion of the external debt at USD 114.137 million. The debt is split into two, short-term and long-term payments. In the short term, Colombia’s public sector has to pay USD 1.566 million. These payments are usually made to International Financial institutions, which are the ones that make loans. Some of the better-known institutions to which this debt has to be paid are the International Monetary Fund (IMF) and the World Bank. In the long term, Colombia’s public sector must pay USD 112.572 million.
On the other hand, the private sector closed in January 2024 with a total debt of USD 83.897 million. In the short term, the private sector has to pay a total of USD 32.029 million. In the long term, they must pay USD 51.868 million. Both debts are still rising. In fact, over the last year, public debt rose 7,17% whereas private debt rose 4,40%.
What action is Colombia’s government taking?
The Ministry of Finance and Public Credit of Colombia has filed a request in Congress to increase the country’s debt cap. The ministry has requested to increase the cap by USD 17.607 million. This decision highlights the continuity of an increase in debt policy that since 1999 has seen a total increase of USD 70.000 million. The total sum of these continuous increases is around 271,2 billion Colombian Pesos.
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