Agreement between banks and government will allow investment of 250 billion

by times news cr

2024-08-29 04:33:41

The decision was made after a meeting between Asobancaria and the Government, where it was defined how the investments will be distributed, avoiding having to go through the law of forced investments.

The government of President Gustavo Petro and the country’s financial sector have reached a historic agreement that promises to inject $250 billion in credits to strategic sectors of the economy. The measure, which was the result of extensive negotiations, seeks to energize key areas and strengthen economic growth in a context of global slowdown.

The decisive meeting, held on August 27, was attended by President Petro, the Minister of Finance, Ricardo Bonilla, the director of the National Planning Department (DNP), Alexander López Maya, and the Financial Superintendent, César Ferrari, as well as the main managers of the country’s banks. According to the president of the Banking and Financial Entities Association of Colombia – Asobancaria, Jonathan Malagón, the agreement was not a fortuitous event, but the result of 19 sessions of intense work and constant dialogue.

Three key points

Malagón, in announcing the pact, highlighted three key points. First, he stressed that the country’s strategic sectors, defined by the Government as the “spearhead” of the recovery, will see a significant increase in available credits. “These sectors, which used to receive around $195 billion in a period of 18 months, will now receive $250 billion. This represents an increase of 28%, which is crucial in a context of low inflation,” said Malagón.

You can read: There will be no more forced investments: Petro announced agreement with private banks

The distribution of funds will be as follows: $40.6 billion for housing and infrastructure, $163.4 billion for manufacturing and energy transition, $32.1 billion for the agricultural sector, $4.1 billion for the popular economy, and $8.4 billion for tourism. This increase in credit is expected to allow these sectors to play a central role in the country’s economic recovery.

No risk

Malagón’s second message was directed at investors and savers. He assured that, after the decision not to go ahead with the proposal of forced investments for banks, it is guaranteed that the savings of Colombians will not be at risk under any circumstances. “Although we will use both public and private planning instruments, the resources will be granted under a market logic, which is good news for investors,” said Malagón.

The third point highlighted by Malagón was that this agreement demonstrates the value of dialogue and consensus. “What we are presenting today is a tangible result that will begin to materialize in September with a national pact on credit,” he said. He also emphasized that the path of dialogue is the one that will allow us to build a more prosperous and secure society.

Example of collaboration

For his part, President Petro celebrated the agreement as an example of collaboration between the public and private sectors that could serve as a model at the international level. “This is a great economic planning apparatus, where the program voted for by the Colombian people is being applied,” Petro stressed. He also reiterated that the agreement will be closely monitored to ensure that the funds reach productive activities.

The pact has not only generated positive expectations among the sectors involved, but has also been well received by political actors. However, some voices, such as that of former vice president Marta Lucía Ramírez, have expressed concern about the exclusion of sectors such as infrastructure, technology and services from the agreement. Even so, the general consensus is that this pact represents a significant step towards the economic reactivation of the country.

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