Tuesday, May 21, 2024

Logo Central America Link

Colombia tax reform delay sparks rating fears

Thursday, February 4, 2016

The Colombian government's delay in submitting a crucial tax reform to tackle a plunge in oil revenue and a tricky overseas scenario could prompt a cut in its credit rating this year, boosting the cost of its debt and moving it closer to speculative grade, investors fear.

While Colombia's problems are far less severe than those of Brazil, the nosedive in oil and coal revenue has deteriorated Colombia's fiscal accounts.

Source: Reuters