Exclusive-Colombia held discussions with IMF, including on securing financing, sources say

The Colombian government has held talks with the International Monetary Fund (IMF) to explore securing financing and addressing the country's fiscal crisis, according to sources familiar with the matter. President Abelardo De La Espriella instructed his economic team to engage in discussions with the IMF to find a solution to the fiscal crisis, which has worsened due to lower tax revenue, increased spending, and persistent inflation.

The talks have focused on securing alternative financing at more favorable rates, as the country has raised its domestic and external borrowing targets to address a wide fiscal deficit expected in the current and next year. The Finance Ministry has requested a technical mission from the IMF to conduct an Article IV consultation, an assessment of the country's economy and macroeconomic policies.

This consultation will allow the IMF to review Colombia's fiscal plan and economic outlook, paving the way for deeper dialogue on new forms of cooperation. While details about the potential financing program are not yet available, Colombian Vice President Jose Manuel Restrepo and the economic team have expressed their intention to seek an agreement with the IMF.