Colombia in IMF Talks Over Financing as Fiscal Crisis Deepens

Colombia has held talks with the International Monetary Fund on possible financing, three sources said, as the government confronts soaring borrowing needs and widening deficits that have rattled investors. President Abelardo De La Espriella, in office since August, said on September 27 he ordered his economic team to open IMF discussions. The Finance Ministry confirmed it asked the IMF to send a technical mission after meetings in Bogota between IMF Deputy Managing Director Nigel Clarke and Colombian officials. A ministry delegation will travel to Washington next week for further talks. The IMF did not announce any financing arrangement, and a source said it is too early to discuss a possible program's size. Colombia faces lower tax revenue, expanded spending under the previous government and persistent inflation. The government now expects a much larger budget shortfall this year and a wider gap in 2027. Borrowing will rise by more than $10.5 billion this year, reaching $71.7 billion in 2027, more than double initial plans.