RIO DE JANEIRO, BRAZIL - Colombia’s plan to finance its fiscal needs this year with ever-swelling debt has sparked market concern and may herald the loss of the Andean country’s investment-grade credit rating, analysts and investors say.
The Finance Ministry last week revised 2021 fiscal targets, deepening its prediction for a central government budget deficit to 8.6% of GDP amid ongoing economic fall-out from the coronavirus.
The new deficit prediction was steeper than estimates by analysts, disappointing their hopes that the worst - a 7.8% GDP deficit last year - had already passed and underlines how . . .