Colombia’s Finance Minister Diego Guevara is reportedly set to leave amid disagreements with President Gustavo Petro, though the finance ministry denies having official information about it. Guevara’s departure could exacerbate financial instability in Colombia’s economy. Analysts express concern about political implications and anticipated central bank interest rate cuts, while the peso continues to decline.
Colombia’s Finance Minister, Diego Guevara, appears to be leaving his position due to disagreements with President Gustavo Petro, as reported by local media and a confidential source. However, the finance ministry has publicly stated they possess no official information regarding this matter, emphasizing that future announcements will contain any updates. Guevara has held the finance minister role for just over three months after serving as vice finance minister.
According to a source from the presidential palace, contention between Guevara and President Petro over proposed budget cuts led to Guevara’s resignation on Monday evening. Conversely, officials within Petro’s office have stated they cannot confirm Guevara’s departure, implying he remains in his position. Local media has reported that German Avila Plazas, currently the head of Grupo Bicentenario, is expected to succeed Guevara.
Guevara’s potential resignation raises concerns about the stability of Colombia’s public finances, which are already in a precarious state. Analysts from Banco de Bogota remarked that frequent cabinet changes and the inexperience of the candidate poised to assume Guevara’s duties could escalate political and economic instability. They noted that such uncertainty might jeopardize anticipated interest rate reductions by the central bank scheduled for late March.
On Tuesday, the Colombian peso fell by 1.08%, sliding to 4,118 per dollar. Earlier this month, Guevara indicated that the government was contemplating another delay in budget allocations for 2025 due to ongoing financial challenges that have prompted prior spending cuts.
In conclusion, the reported resignation of Colombia’s Finance Minister Diego Guevara highlights significant internal conflicts within the government, which may adversely affect the country’s economic stability. The uncertainty surrounding potential changes in leadership raises concerns among analysts and investors alike. With the peso’s decline and lingering budget issues, the situation requires careful monitoring as developments unfold.
Original Source: theprint.in
