Colombia's public debt pays 14% rates, something the government dismissed
Government auctioned TES at 14% rates, figures not seen in 20 years. Photo: iStock
TL;DR
- The Ministry of Finance auctioned TES denominated in COP with a four-year maturity (2030).
- The cut-off rate for the auction was 14.030%.
- This rate is 10 basis points lower than the previous auction's cut-off.
- Demand for the TES reached $3 trillion Colombian pesos, three times the initial amount.
- Due to high demand, an additional $500 billion Colombian pesos were allocated through over-allocation clauses.
- Experts like Felipe Campos and Mónica Higuera expressed concern over the high borrowing rates and increasing national debt.
- Diego Montañez highlighted a previous statement from the Director of Public Credit dismissing the likelihood of TES reaching a 14% rate.