{
  "id": 9840692,
  "title": "Colombia Bonds Get Bank of America Overweight Call on 3.1% Primary Deficit",
  "url": "https://urgent.news/2026/09/25/colombia-bonds-get-bank-of-america-overweight-call-on-3-1-primary",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-25T19:54:45.000Z",
  "source": {
    "name": "The Rio Times",
    "slug": "the-rio-times",
    "url": "https://www.riotimesonline.com/colombia-bonds-bank-of-america-overweight-2026/"
  },
  "original_language": "en",
  "account": "Bank of America has upgraded its outlook on Colombia bonds, now recommending investors hold more of the country's sovereign debt than a benchmark index. The bank raised its rating from \"marketweight\" to \"overweight\" on Friday, September 25, 2026. This endorsement is based on the new government's commitment to a sustained and structural fiscal adjustment plan. In particular, BofA highlights the upcoming Ley de Rescate, a rescue bill aimed at closing a significant primary deficit gap. The bank projects this gap will narrow to 3.1% of GDP in 2026, 2.5% in 2027, and 1.5% in 2028. BofA also expects the overall deficit, including interest payments, to gradually decline to 6% of GDP by 2028. The plan calls for roughly 70% of the reduction to come from spending cuts, which are anticipated to have less detrimental effects on growth compared to tax increases. Despite some concerns, the bank remains confident in the plan's progress. The government's funding will increasingly rely on external sources, accounting for about one-third of the total, which should help ease the pressure on domestic interest rates. BofA also suggests that multilateral lenders like the World Bank and the Inter-American Development Bank may play a larger role in financing. The financial institution notes that the government is dropping certain purely accounting operations, such as total return swaps, and shifting to a more sustainable debt structure. However, some experts remain cautious. The Central American Revenue Fund (CARF) has estimated the 2026 primary deficit at 3.9% of GDP, higher than BofA's forecast. The bank also mentioned potential challenges, such as the earthquake's reconstruction costs and the impact of El Niño on food and energy prices.",
  "summary": "Colombia bonds: Bank of America raised the country’s external sovereign debt to overweight, citing a spending-led fiscal adjustment and lower deficits. The post Colombia Bonds Get Bank of America Overweight Call on 3.1% Primary Deficit appeared first on The Rio Times .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}