Colombia to replace DTF with IBR and faces calls for deeper fiscal austerity

Starting 1 January 2027 Colombia will retire the DTF (Depósito a Término de Fijación) as the benchmark used to set interest rates on loans, savings and other financial products. The new Indicador Bancario de Referencia (IBR) will be calculated daily from data supplied by the eight strongest domestic banks, providing a more transparent and internationally‑aligned measure of inter‑bank liquidity. Regulators say the switch will affect mortgage rates, commercial loans and investment yields, and banks must educate customers on how the new reference will influence their contracts.

A separate analysis by the think‑tank Fedesarrollo criticises the government’s 2026 Medium‑Term Fiscal Framework, arguing that its projected deficit reduction to 5.3 % of GDP and primary‑surplus goals require a much deeper austerity effort. The report highlights unclear spending cuts, optimistic revenue assumptions, risks from the fuel‑price stabilization fund, and the impact of the proposed reform to the General Participation System, which could reduce central‑government fiscal space by 0.8 % of GDP. Fedesarrollo urges a more credible budget to reassure markets and sustain debt stability.