In a statement broadcast on Colombian public television on Sunday, President De la Espriella announced that he had given clear directives to begin conversations with the International Monetary Fund (IMF). The objective of these negotiations is to find a negotiated solution for the financial crisis his government has assumed.
De la Espriella declared the intention to overcome the situation, although he did not detail the positions that Colombian representatives will present to the multilateral organization, which usually provides financial aid to member countries through the adoption of adjustment and austerity measures.
The new head of state stressed that the Colombian state faces the most serious scenario in its history, attributing this to the waste promoted by the previous government, led by left-wing president Gustavo Petro, and the persistence of corruption.
He accused that 'everything was stolen' and warned that such damage will not go unpunished under the management of the Tiger Government, as his Executive names it. The President also emphasized that the seriousness of the public finances situation is not fully perceived by the population, due to the apparent economic stability observed in the country.
This supposed normality would be sustained by a 'parallel economy' on the streets, fueled by illicit resources from drug trafficking and corruption, given that Colombia is cited as the world's largest cocaine producer.
De la Espriella stated that the government operates with an unsustainable illusion, as state revenues are insufficient to cover both debt payments and the operational costs of the state. He concluded that the Colombian state is spending more than it earns, and that public finances can no longer bear the burden.
Official data regarding the closing of the first half of the current year indicates that Colombia's public debt reached 60% of the Gross Domestic Product (GDP). Furthermore, while the initial projection for the budget deficit for the year was 7.4%, the impact of the August earthquake, with a magnitude of 7.4, and subsequent reconstruction efforts may compromise public accounts, further reducing the budgetary margin available to the Executive.