IMF opens $8.1 billion credit line for Colombia

The International Monetary Fund said Friday it will open a $8.1 billion credit line for the government of Colombia, part of a program to help states avoid crisis situations.

Unlike a traditional aid program, Colombia will not receive the sum but can access it if necessary for 24 months.

"The new arrangement under the Flexible Credit Line will provide added insurance against downside external risks and maintain market confidence. The authorities intend to continue to treat this new arrangement as precautionary," IMF Deputy Managing Director Antoinette Sayeh was quoted as saying in a statement.

Colombia's economy slowed last year, growing just 0.3 percent with an increase in public spending.

The country is expecting 1.1 percent growth this year, according to the IMF, still well below average growth expected for Latin America as a whole.

Colombia earlier this month told the IMF it wanted to renegotiate repayments on the remainder of a $6 billion loan it was granted during the Covid-19 pandemic, but which is now "asphyxiating" the country's finances.

Colombia's total debt amounted to nearly $224 billion by the end of 2023, about 52 percent of GDP, according to the finance ministry.