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[BUSINESS] · Colombia · 27 sources

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Colombia seeks IMF talks to address critical fiscal crisis

Colombian President Abelardo de la Espriella has ordered the Ministry of Finance to initiate discussions with the International Monetary Fund (IMF) to address a critical fiscal crisis. The President described the nation's public finances as being in their most precarious state in history, noting that state revenues are currently insufficient to cover both debt service and essential operating expenses.

Economic data indicates a significant rise in the central government's fiscal deficit, which grew from 4.2% of GDP in 2023 to 6.7% in 2024. Additionally, gross public debt reached 61.2% of GDP by the end of 2024. Projections for 2027 suggest a potential deficit of 9.4% of GDP, prompting the government to seek technical assistance and potentially new financing terms through the IMF.

The announcement has drawn sharp criticism from opposition leaders, including Senator Alejandro Ocampo, who warned that IMF programs often impose austerity measures and conditions that can harm social rights and increase poverty. Meanwhile, the government has also reported security improvements, claiming a 79% reduction in kidnappings between August 2025 and August 2026.

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Abelardo De La Espriella · Alejandro Ocampo · Colombia · Gustavo Petro · International Monetary Fund · Miguel Gómez Martínez · Nigel Clarke

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