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Rebels sabotage bondholders in Colombia selloff

Tuesday, June 24, 2014

Colombia’s bondholders have become Latin America’s biggest losers as rebel attacks on oil sites imperil production and the government plans more debt sales.

The nation’s peso-denominated notes have fallen six times the emerging-market average since June 16, when sabotage by Marxist guerrillas, community protests and environmental delays prompted Colombia to reduce the oil-output estimates in this year’s financing plan.

The 1.4 percent bond loss coincides with the Finance Ministry’s decision to raise its budget deficit projection and boost local debt auctions by $531 million.

Source: Bloomberg