- Title: Colombia hopes to keep credit ratings, prepare pension proposal
- Date: 9th August 2017
- Summary: BOGOTA, COLOMBIA (AUGUST 9, 2017) (REUTERS) (SOUNDBITE) (Spanish) COLOMBIA'S FINANCE MINISTER, MAURICIO CARDENAS, SAYING: "The government will prepare a proposal. The government summoned a commission of experts to analyse the issue of spending. Their number one concern is the issue with pensions because that's where we spend the most within the whole national government, pension payments are the number one concern. This spending commission will issue a recommendation on what needs to be done in this matter and this government will also prepare a specific proposal for a pension reform, that will have to be built on at a later date with political consensus to sign it into law."
- Embargoed: 23rd August 2017 17:16
- Keywords: Colombia Mauricio Cardenas Investment Summit Latin America economy
- Location: BOGOTA, COLOMBIA
- City: BOGOTA, COLOMBIA
- Country: Colombia
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA0056TFR39F
- Aspect Ratio: 16:9
- Story Text: Colombia's Finance Minister Mauricio Cardenas, sees no risk in the near future for the country's credit rating, as the government remains committed to boosting economic growth with fiscal discipline.
Rating agencies Fitch and Moody's maintain a "stable" outlook for Colombia. Standard & Poor's rated the outlook for the fourth Latin American economy as "negative" last year, before the approval of the tax reform, but the government is confident that it will rise soon.
The minister said he was optimistic despite the fact that Moody's said it could be difficult for the country to meet its fiscal targets because of lower economic growth, the risk of higher spending and lower-than-expected revenues.
Colombia recently lowered its economic growth target to two percent for this year from an initial 2.3 percent and by 2018 set a target of three percent, down from the previous 3.5 percent.
Before Moody's, Fitch had warned that rating could suffer if the fiscal situation undermines efforts to stabilise or reduce the debt burden in the short term. But the minister said the government remains committed to reducing the fiscal deficit and boosting economic growth, although analysts and economists see risks.
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