Identifier
Created
Classification
Origin
09BOGOTA1299
2009-04-21 23:16:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bogota
Cable title:
COLOMBIA SEEKS USD 10.4 BILLON IMF CREDIT LINE AS
how-toVZCZCXYZ0002 RR RUEHWEB DE RUEHBO #1299 1112316 ZNR UUUUU ZZH R 212316Z APR 09 FM AMEMBASSY BOGOTA TO RUEHC/SECSTATE WASHDC 8425 INFO RUEHBR/AMEMBASSY BRASILIA 8804 RUEHPE/AMEMBASSY LIMA 7373 RUEHCV/AMEMBASSY CARACAS 2068 RUEHZP/AMEMBASSY PANAMA 3455 RUEHLP/AMEMBASSY LA PAZ APR QUITO 8114 RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS BOGOTA 001299
SIPDIS
SENSITIVE
TREASURY FOR AJEWELL; WHA/EPSC FOR AWONG; EEB/OMA FOR
ASIROTIC
E.O. 12958: N/A
TAGS: EFIN ECON PGOV CO
SUBJECT: COLOMBIA SEEKS USD 10.4 BILLON IMF CREDIT LINE AS
PRECAUTION AGAINST ECONOMIC SLOWDOWN
REF: BOGOTA 1270
UNCLAS BOGOTA 001299
SIPDIS
SENSITIVE
TREASURY FOR AJEWELL; WHA/EPSC FOR AWONG; EEB/OMA FOR
ASIROTIC
E.O. 12958: N/A
TAGS: EFIN ECON PGOV CO
SUBJECT: COLOMBIA SEEKS USD 10.4 BILLON IMF CREDIT LINE AS
PRECAUTION AGAINST ECONOMIC SLOWDOWN
REF: BOGOTA 1270
1. (SBU) Citing uncertainty over the outlook for the
Colombian economy amid the global downturn, Finance Minister
Oscar Ivan Zuluaga announced April 20 the Colombian
government's decision to request a USD 10.4 billion flexible
line of credit from the International Monetary Fund. The
decision follows a deterioration in the GOC's fiscal accounts
since the beginning of the year and increasing indications
that Colombia is approaching recession.
2. (SBU) Minister Zuluaga and other GOC officials, including
Central Bank President Jose Dario Uribe, characterized the
request in public remarks as a precautionary step in order to
have additional funds on hand in the event Colombia's budget
deficit worsens amid falling tax revenues. Upon approval from
the IMF, Colombia would have one year to draw on the credit
line as needed. While the requested amount is equivalent to
over 40 percent of Colombia's current record-high
international reserves, GOC authorities did not dismiss the
possibility of requesting an increase or extension in the
loan in the future.
3. (SBU) Local markets and analysts reacted positively to the
decision despite the abrupt shift in recent months from
Colombia's long stream of positive economic news since 2003.
Among others, former Director of Public Credit Julio Torres
told us he considered the GOC move prudent, if somewhat
overdue, given the decline in the local economy and the GOC's
fiscal accounts since early 2009.
BROWNFIELD
SIPDIS
SENSITIVE
TREASURY FOR AJEWELL; WHA/EPSC FOR AWONG; EEB/OMA FOR
ASIROTIC
E.O. 12958: N/A
TAGS: EFIN ECON PGOV CO
SUBJECT: COLOMBIA SEEKS USD 10.4 BILLON IMF CREDIT LINE AS
PRECAUTION AGAINST ECONOMIC SLOWDOWN
REF: BOGOTA 1270
1. (SBU) Citing uncertainty over the outlook for the
Colombian economy amid the global downturn, Finance Minister
Oscar Ivan Zuluaga announced April 20 the Colombian
government's decision to request a USD 10.4 billion flexible
line of credit from the International Monetary Fund. The
decision follows a deterioration in the GOC's fiscal accounts
since the beginning of the year and increasing indications
that Colombia is approaching recession.
2. (SBU) Minister Zuluaga and other GOC officials, including
Central Bank President Jose Dario Uribe, characterized the
request in public remarks as a precautionary step in order to
have additional funds on hand in the event Colombia's budget
deficit worsens amid falling tax revenues. Upon approval from
the IMF, Colombia would have one year to draw on the credit
line as needed. While the requested amount is equivalent to
over 40 percent of Colombia's current record-high
international reserves, GOC authorities did not dismiss the
possibility of requesting an increase or extension in the
loan in the future.
3. (SBU) Local markets and analysts reacted positively to the
decision despite the abrupt shift in recent months from
Colombia's long stream of positive economic news since 2003.
Among others, former Director of Public Credit Julio Torres
told us he considered the GOC move prudent, if somewhat
overdue, given the decline in the local economy and the GOC's
fiscal accounts since early 2009.
BROWNFIELD