BOGOTA (Reuters) – Colombia’s incoming finance minister German Avila said on Friday that under his term the country would continue to pay back its pubic debt and look to improve tax collection in order to address the government’s tight fiscal situation.
Avila is set to replace former minister Diego Guevara, who resigned earlier this week amid disagreements with President Gustavo Petro, causing unease in the Latin American nation’s financial markets.
“We will continue to meet the commitments of the public debt and we will make the necessary adjustments to improve tax revenues that will allow us to meet the fiscal tightness of this juncture,” Avila said in an audio file shared with local media.
“Such appointments should not jolt the health of the country’s economy,” he added. “To the contrary, the good results should continue and get consolidated.”
Avila is the fourth finance minister Petro has appointed since he began his administration in August 2022.
Analysts have said the change of minister highlights uncertainty around the future of Colombia public finance, with lack of public funds forcing the country to slash spending plans and raise its debt issuance cap.
“We owe ourselves a government and a program inclined to meet social needs, which implies listening to and attending to all the sectors that make up the nation,” Avila said.
(Reporting by Sarah Nelson Bocanegra; Editing by Aida Pelaez-Fernandez)
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