Colombia Seeks IMF Talks Amid Fiscal Crisis

Colombia’s government has directed its economic team to open talks with the International Monetary Fund over a severe fiscal crisis, reversing an earlier position that ruled out seeking IMF help. The discussions are preliminary: sources say officials are exploring financing on better terms, but no funding arrangement or amount has been settled and a formal staff mission would be needed. The government says it plans to reduce spending and restore the fiscal rule, while warning that the deficit could exceed 9% of GDP next year if cuts are not made. The IMF has urged credible steps to restore fiscal discipline and investor confidence, while preserving priority social spending; it also points to reforms in investment, infrastructure, security, education and the rule of law as ways to support longer-term growth.