Colombia’s Finance Minister Diego Guevara may resign due to disagreements with President Gustavo Petro, although the Finance Ministry has not confirmed his departure. Reports suggest German Avila Plazas will succeed Guevara, exacerbating concerns over the country’s public finances and political stability. The Colombian peso weakened by 1.08% amidst these developments.
Colombia’s Finance Minister, Diego Guevara, is reportedly poised to leave his position due to disagreements with President Gustavo Petro, according to local media and sources. However, the Finance Ministry has stated that it possesses no official information regarding this situation and will provide updates as necessary. Guevara has served in his role for just over three months, previously holding a position as vice finance minister.
A source from the presidential palace indicated that Guevara resigned following a disagreement over budget cuts with President Petro, who has recently replaced a significant number of his ministers. Despite this, another source from Petro’s office claimed that Guevara remains active in his position and no official confirmation of his resignation has been issued.
Local media, such as Caracol, reported that Guevara may be succeeded by German Avila Plazas, the head of Grupo Bicentenario. Financial analysts note that Guevara’s departure could exacerbate uncertainties surrounding Colombia’s challenging public finances, underscoring concerns about political and economic stability.
Banco de Bogota expressed apprehension, indicating that the continuing cabinet changes and the profile of the prospective minister would further destabilize the political landscape. The bank also commented that this situation casts doubt on anticipated reductions in interest rates by the central bank, expected at the end of March.
Additionally, the Colombian peso saw a decline of 1.08%, settling at 4,118 per dollar. This situation unfolds amidst ongoing difficulties regarding budget management, with Guevara stating earlier that the government is contemplating delays in the 2025 budget spending due to existing budgetary challenges.
In summary, reports suggest that Colombia’s Finance Minister, Diego Guevara, may resign due to conflicts with President Gustavo Petro concerning budgetary issues, although the Finance Ministry has not confirmed this. Guevara’s potential replacement by German Avila Plazas may raise further concerns about political and economic stability in Colombia, especially in light of recent cabinet changes. Consequently, uncertainty surrounding Colombia’s public finances persists, coupled with implications for potential interest rate adjustments.
Original Source: theprint.in
