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The Executive Board of the International Monetary Fund (IMF) approved on Friday a successor two-year arrangement for Colombia under the Flexible Credit Line (FCL) in an amount equivalent to SDR 7.8496 billion, or approximately $10.8 billion USD and noted the cancellation by...

Today, mechanical engineer Armando Zamora Reyes (above, left) was sworn in as president of Colombia’s National Hydrocarbons Agency by Minister of Mines and Energy, María Fernanda Suárez Londoño

Sovereign and corporate issuers in Latin America will be adversely affected by slower Chinese demand and commodity price weakness caused by coronavirus due to high commodity export dependence and direct trade exposure to China, says Fitch Ratings.

Though slight, the body's upward revision for Colombia comes in contrast to the IMF’s overall expectations for the global economy.

This figure is identical to a recent forecast from the central bank and represents an improvement from the disappointing 1.8% registered in 2017.

The credit line replaces the pre-existing similar arrangement and Colombia will continue to see the funds as precautionary.

Though the rating is unchanged from the New York agency’s previous assessment, the status quo represents positive news for a country where economic growth has slowed.

S&P highlighted Colombia’s “diminished policy flexibility” due to “weakened fiscal and external profiles” in its analysis following the move.

"These forecasts for Colombia's growth are much higher, compared to the other scenarios in Latin America," said Cárdenas.

Last July, the IMF forecasted Colombia's GDP to grow by 3.0% in 2017. In October, that figure fell to 2.7% then, in April, it was cut again to 2.3%. Now it sits at 2.0%.