De la Espriella uses the IMF to respond to Colombia's financial crisis

In a speech broadcast by Colombian public television on Sunday, the President explained that he gave “clear instructions” so that “conversations with the IMF are established, with the aim of finding a negotiated exit to the crisis”, which his government inherited.

“ We will get through this,” De la Espriella said, without giving any more details about the positions with which Colombian representatives will present themselves before the multilateral organisation, which usually grants financial aid to Member States in exchange for adjustment and austerity measures.

The new head of state added that the Colombian state faces the “most critical” situation in the country’s history due to the “waste” of the previous government, led by left-wing president Gustavo Petro, and corruption.

“They stole everything,” De la Espriella said, threatening that “all this damage will not go unpunished in the Tigre Government”, as his Executive calls it.

The President said that the “gravity” of the state of public finances “is not sufficiently understood” by public opinion, due to the “apparent economic normality” that exists in the country.

This supposed normality is due to the fact that “in the streets” there is a “parallel economy” that is supported by “illicit money” from corruption and drug trafficking, because Colombia, he added, is “the world’s largest cocaine producer.”.

“The government maintains a chimera that can no longer pay,” said De la Espriella, who stressed that “the revenues [of the State] are lower than the payment of its debt and its operation.”.

“The Colombian State is spending more than it has,” De la Espriella said: “Public finances can no longer take it.”.

Colombian public debt currently amounts to 60% of gross domestic product (GDP), according to official data on the closure of the first half of the current financial year.

This year's budget deficit forecast was 7.4%, but the August earthquake of magnitude 7.4 and the reconstruction that followed could put public accounts at risk, further reducing the Executive's budgetary margin.