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By Jorgelina do Rosario and Rodrigo Campos
WASHINGTON (Reuters) – Colombia is trying to situation a inexperienced bond earlier than the top of 2023, probably in {dollars}, and will faucet conventional credit score markets once more this yr if borrowing prices fall, Finance Minister Jose Antonio Ocampo mentioned on Friday.
He mentioned the quantities weren’t set but, however that the inexperienced bond can be smaller than a $2.2 billion benchmark issuance from his authorities earlier this yr.
“We do not want extra financing for 2023. Al 2023 amortizations are coated, and even a part of subsequent yr’s. We do not want it, but it surely could possibly be handy,” he mentioned in Washington on the sidelines of the Worldwide Financial Fund and World Financial institution spring conferences.
Ocampo mentioned “when rates of interest come down” can be time to market new bonds, probably within the second half of this yr, aiming for yields to be under the 7.5% of the newest issuance.
“We’re pondering inexperienced and social bonds,” he mentioned, “we’re working with the (Inter-American Growth Financial institution) and the World Financial institution.”
PENSION REFORM
Ocampo mentioned views {that a} pension reform proposed by the federal government might decrease its means to finance itself had been “fully unsuitable,” as any demand misplaced for native bonds from non-public pension funds can be absorbed by a brand new authorities pension fund.
Below the proposal, the federal government’s fund will take up contributions from as much as thrice the minimal wage, with staff incomes greater than that capable of direct the remaining to present non-public funds.
The reform proposes that beginning in 2025, 20% of contributions to the federal government pension fund will go to a financial savings fund that may enhance that share progressively each 10 years.
Goldman Sachs mentioned in a March report that the reform introduced a major fiscal danger for the federal government’s native financing plan. Personal pension funds are the most important holders of native public debt, with some $26 billion, or barely greater than 25% of the full.
Ocampo, rumored to be leaving the federal government of left-leaning President Gustavo Petro, mentioned when requested in regards to the length of his time in workplace: “I’ve my public service depart from Columbia College till June of subsequent yr.”
(Reporting by Jorgelina do Rosario in Washington and Rodrigo Campos in New York; extra reporting by Nelson Bocanegra in Bogota; Enhancing by Chizu Nomiyama and John Stonestreet)