What Jumps Out : A Face For Radio

You’re all being spared a video this morning because, truth be told, Colombia is short on news. This should have been the week when Banco de la República—Colombia’s central bank—cut interest rates by 1% to 8.75%. Instead, while they sit down for coffee, cake, and cash their paychecks, no decisions will be made. They only meet eight times a year for this—surely, that nonsense needs to change.

What also needs to change is the politicalization of the committee, which has left overnight rates at an artificially high level. The economy, according to experts like the Banking and Financial Institutions Association of Colombia Asobancaria, is already expanding. Consumer durables imports are rising, per the National Administrative Department of Statistics DANE Colombia. Inflation has been tamed, but things could be better if the central bank had done its job. Waiting until their next meeting on December 20? Too late.

Meanwhile, Bancolombia reports this morning that the National Directorate of Taxes and Customs DIAN is behind on 2024 tax collections—possibly $2.5 billion short. The only saving grace might be the delayed government spending execution for 2024. Minister of Finance, Ricardo Bonilla, hints at possible 2025 budget cuts, which Fitch Ratings acknowledged last week while reaffirming Colombia’s BB+ (Stable) rating.

And let’s talk about the weather. Torrential rains are wreaking havoc across the country, with videos of cars swept away by floods dominating the news. Yet, hydroelectric reservoirs, per CREG, are above alert levels. In contrast, Bogotá is still grappling with water shortages—a paradox that sums up Colombia’s complexity as we brace for La Niña. Institute of Hydrology, Meteorology, and Environmental Studies IDEAM hasn’t announced it yet, but surely it’s just a matter of time.

The minimum wage debate is ongoing, with a deadline of December 15 for a proposal to emerge.

For now, there’s little else to report.

Regards,
Roops