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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.
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Portafolio.co broke the news in on Friday, March 21, 2025.
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