Colombia’s Risk Premium Soars as Finance Minister Exits
- Colombian Finance Minister Diego Guevara resigned on March 18, 2025, causing the country's risk premium to soar by 24 basis points to 225, the highest since November 2024.
- Guevara's resignation followed clashes with President Gustavo Petro over budget cuts, marking the 13th ministerial exit during Petro's administration.
- The five-year Credit Default Swap rose 24 basis points to 225, signifying increased investor concern about Colombia's economic situation, according to market analysts.
- Colombia's economic challenges, compounded by a $2.86 billion budget gap for 2025, raise fears of further downgrades in its investment-grade rating.
13 Articles
13 Articles
Colombia’s Risk Premium Soars as Finance Minister Exits
Colombia’s government confirmed on March 18, 2025, that Finance Minister Diego Guevara resigned after three months, triggering a sharp rise in the country’s risk premium. The five-year Credit Default Swap (CDS), a key measure of investor trust in a nation’s debt repayment ability, jumped 24 basis points to 225, hitting its highest level since November […]
Colombia Spirals Toward ‘Failed State’ Under Exploding Cartel Violence: Experts
Drug cartels are tightening their grip on Colombia amid failed peace initiatives, economic stagnation, and forced recruitment into terrorist groups, say experts. Colombian President Gustavo Petro’s “total peace” initiative aimed to enforce a 2016 peace accord struck between the former Santos administration and the decades-old terrorist group the Revolutionary Armed Forces of Colombia (FARC). In 2022, Petro’s expansion of the law aimed to “carry …
Colombia, a democracy in consultation
Colombia lived for more than 100 years searching the way to overthrow the wall of the 1886 Constitution that kept the country under the permanent declaratory state of siege. It was a situation of exceptionality that closed democratic spaces, pruned political leaderships, withered civil society, was fertile ground for violence and gave excuses to illegal armed groups to raise the flags of insurrection before an authoritarian regime incapable of c…
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