Published On: Tue, Jun 20th, 2017

Colombia pushes financial system reforms with $450 million IDB loan

colombian_flagWASHINGTON - The Inter-American Development Bank (IDB) has approved the second phase of an operation to support financial system reforms aimed at boosting Colombia's economic growth. The loan is for $450 million.

The reforms being pushed forward by the government of Colombia seek to safeguard the country’s macroeconomic stability, enhance productive development and public-private partnerships financing, strengthen the financial system’s regulation and monitoring progress, and improve financial inclusion.

Among other things, the program will seek to ease the access of micro-, small- and mid-sized enterprises (MSMEs) to financing through the use of secured transactions and electronic invoices as financial collateral. It will also deepen the structuring of productive infrastructure projects through the Financiera de Desarrollo Nacional (FDN).

Additionally, Colombia is striving to achieve a greater degree of financial system transparency and to foster the development of its capital markets in line with its process of joining the Organization for Economic Cooperation and Development (OECD) and its agenda of financial integration within the Pacific Alliance framework.

Furthermore, issuance of the Financial Inclusion Act’s implementing regulations and implementation of financial education initiatives will provide enhanced access of unbanked persons to financial services.

This operation is being carried out under the programmatic policy-based loan modality, designed to provide financial support to priority reforms in member countries.

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