Colombia’s Finance Minister Diego Guevara is reported to be resigning amid disagreements with President Gustavo Petro, although the finance ministry claims no such information exists. Concerns arise over the stability of Colombia’s public finances and the future direction of budget spending, with potential impacts on interest rates and currency value.
Colombia’s Finance Minister, Diego Guevara, may resign following reported disagreements with President Gustavo Petro, despite the finance ministry’s statement claiming no official information regarding his departure. Guevara’s tenure has been brief, lasting just over three months after he served as vice finance minister. Media and a presidential source indicate that these disagreements relate to budget cuts made by the government.
President Petro has recently made significant changes to his cabinet, replacing 12 out of 19 ministers, and a source suggests that Guevara resigned late Monday. However, Petro’s office clarifies that they do not have confirmation on Guevara’s resignation and he continues to occupy his position. Reports from local media suggest that Guevara is to be succeeded by German Avila Plazas, head of Grupo Bicentenario.
Analysts are concerned that Guevara’s potential exit raises questions about the future of Colombia’s already troubled public finances. Banco de Bogota noted that constant cabinet reshuffles and Avila’s profile might heighten both political and economic instability in the country. Furthermore, the expected cut to interest rates by the central bank is now in doubt due to this instability. The Colombian peso has also experienced a decline, dropping 1.08% and trading at 4,118 per dollar as of Tuesday. Additionally, Guevara disclosed earlier this month that the government is contemplating further delays in budget spending for 2025 as it grapples with existing budget challenges.
In summary, Colombia’s Finance Minister Diego Guevara’s potential resignation emphasizes instability in the nation’s public finance management. Disagreements with President Gustavo Petro and ongoing cabinet changes contribute to this uncertainty. The upcoming appointment of German Avila Plazas as Guevara’s successor may present further challenges, raising concerns about economic stability and the prospective interest rate cuts by the central bank.
Original Source: theprint.in
