Colombia’s Finance Minister Faces Departure Amid Political Disagreements
Colombia’s Finance Minister Diego Guevara is set to resign amid disagreements with President Gustavo Petro, which the finance ministry currently denies. The expected replacement is German Avila Plazas, which raises concerns about economic stability and impacts on budget spending and interest rates. The Colombian peso has declined amidst these developments.
Colombia’s Finance Minister, Diego Guevara, is reportedly poised to depart from his position due to differences with President Gustavo Petro, according to local media and a source. However, the finance ministry has stated that it possesses no official information regarding this matter, indicating that further communication will be provided. Guevara, who has assumed his role for just over three months after serving as vice finance minister, may soon be succeeded by German Avila Plazas from Grupo Bicentenario.
Disagreements over budget cuts appear to have led to Guevara’s resignation as Minister. Although a source from the presidential office stated that confirmation of Guevara’s departure has not been secured, it is suggested that he relinquished his position late on Monday. With recent cabinet changes, including the replacement of 12 out of 19 ministers, uncertainty looms over the financial landscape of Colombia, sparking concerns among analysts regarding potential economic instability.
The Banco de Bogota expressed its apprehensions, noting that constant cabinet changes and the profile of the prospective new minister could exacerbate political and economic instability. Additionally, this situation raises questions about the anticipated interest rate cuts by the central bank, which were expected by the end of March. On Tuesday, the Colombian peso experienced a decline of 1.08%, closing at 4,118 per dollar, reflecting concerns over the nation’s fiscal challenges and potential delays in budget spending as voiced by Guevara earlier this month.
In summary, Colombia’s Finance Minister Diego Guevara is reportedly resigning due to disagreements with President Gustavo Petro, raising concerns about political and economic stability amid governmental changes. While the finance ministry claims no official confirmation of this change, analysts worry about the implications for the nation’s fiscal health and upcoming monetary policy adjustments. The potential appointment of a new minister and further budget delays could intensify existing economic uncertainties.
Original Source: theprint.in
