Colombia’s Struggles to Ink Peace Deal May Jeopardize Bond Gains
- Fitch put Colombia’s rating on negative watch last month
- Peace-accord delays may hurt tax bill needed to boost finances
This article is for subscribers only.
Colombia’s inability to finalize a long-awaited peace deal with rebels is threatening to derail the nation’s bond rally.
The tentative agreement that would end five decades of fighting with the FARC still needs to be formally signed by both parties as well as approved by the public via a plebiscite. The delay is putting at risk a tax bill that President Juan Manuel Santos plans to send to Congress in October, which is badly needed to boost government revenue in the face of low oil prices.