The Ministry of Finance issues a statement on the conditions of the IMF's flexible credit line.

Hours after it became known that the International Monetary Fund (IMF) had placed two conditions on the renewal of Colombia's flexible credit line, which will depend on the review of certain variables, the Ministry of Finance issued a statement stating that the government is making progress in implementing economic measures to meet the goals included in the National Development Plan.

(Read: IMF makes the renewal of the country's flexible credit line conditional on two points ).

"The Ministry of Finance and Public Credit continues to analyze the fiscal situation. The government is making progress in implementing economic measures that take into account the evolution of both domestic and external economic conditions, as well as the fulfillment of the goals included in the National Development Plan. These include policies for managing revenue, spending, and public debt to ensure compliance with the fiscal deficit target of 5.1% by 2025," the ministry said in a statement.

It should be noted that as of Saturday, April 26 , the IMF decided to suspend the flexible credit line (FCL) it has maintained with Colombia since 2024 until the ongoing Article IV consultation and a mid-term review of the credit are completed.

(Here: Why should wealth be redefined and measured away from GDP? )

“From April 26, 2025, Colombians' continued rating for the MFI Flexible Credit Facility (FCL) is contingent upon the completion of the ongoing Article IV consultation and a subsequent interim review of the FCL. The FCL agreement was approved on April 26, 2024, for a two-year period, with an interim review to assess the continued rating,” the multilateral institution stated.

IMF visit

The Ministry of Finance confirmed that this year, a team from the International Monetary Fund (IMF) made an annual visit to Colombia as part of Colombia's 2024 Article IV consultation.

During that visit, the IMF team met with public and private sector entities .

For the government, the fund emphasized that Colombia continues its adjustment process following the pandemic.

(Here: Latin American countries that would have the most economic growth in 2025: how Colombia will fare ).

"On the one hand, economic activity has been recovering satisfactorily with an acceleration in growth reaching 2.6% in 2025. The use of the inflation targeting scheme with exchange rate flexibility has been a fundamental piece in the orderly adjustment of the economy, facilitating the convergence of inflation towards its target of 3%. On the external front, a significant reduction in the current account deficit has been observed, in line with the adjustment of aggregate demand. International reserves have increased by 3.8 billion dollars since the end of 2023 and remain at adequate levels (63.4 billion dollars), according to different metrics, including the one suggested by the IMF," mentioned Mihacienda.

However, the IMF made harsh comments about the fiscal situation, the increase in the Central National Government deficit and public debt in 2024, so it decided to evaluate the credit .

Finally, the Ministry of Finance highlighted that the IMF has stated that it " maintains a fruitful dialogue with the Colombian authorities regarding fiscal policy to support economic policies that help solve the macroeconomic challenges facing the country, in a context of high volatility and uncertainty at a global level. In this way, the Article IV process continues in progress, while the continued rating of the Flexible Credit Line (FCL) is contingent on the conclusion of said process and the mid-term review of the FCL itself."

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