Colombia’s Ministry of Finance and Public Credit (Hacienda) announced that by November, Colombia will restructure its ownership of almost two dozen government-owned companies into a single entity with an expected value of $80 billion USD. The holding company would be comprised of 12 wholly owned government companies and the shares of another 7 that the Colombian government partially owns.
“We have tier-1 entities with $2.6 billion in capital, tier-2 entities with 11 billion in capital, and trusteeship of companies worth roughly half a billion. We also have $1.1 billion participation in the insurance sector, and in other financial sector ($6 billion),” said Minister Alberto Carrasquilla Barrera (above).
According to the minister, there are three objectives to the restructuring.
- Optimize the nations portfolio of securities, safeguarding the strength of the entities and public savings.
- Avoid duplication, increase efficiency, generate greater value, and increase governance in the management of portfolios.
- Implement OECD recommendations for best practices in corporate governance by public entities.
Colombia has been invited to join the OECD and as such, must implement several reforms that the multinational organization has deemed essential in order to modernize Colombia’s economy.
Carrasquilla stated that the holding company will be incorporated by November 24.