The National Association of Financial Institutions of Colombia recently presented a report reflecting an increase in the gross debt of the Central National Government (CNG) of $1.194 trillion (64.4% of GDP), a figure that represents the highest level in 27 years.

The organization indicated that “the increase is due to the debt management operations carried out in 2025.” The report reflects that of this total, “domestic debt represented 45.3% of GDP – the highest level in the last 27 years – while external debt reached 19.1% of GDP.” Regarding net debt, which excludes financial assets, it closed 2025 at 58.5% of GDP, “below the 61.3% projected by the Government in the 2025 Medium-Term Fiscal Framework.”

The ANIF report reveals an imbalance between government revenues and expenditures. In 2026, “the highest cash balance was recorded in mid-January (19 trillion pesos) after the direct placement of bonds to PIMCO for 23 trillion pesos, equivalent to approximately 35 % of the total auction placements for 2025. Currently, the balance stands at 6.6 trillion pesos, 68 % lower than the historical average.”

The association’s researchers indicate that the current amounts would only cover five days of operating expenses and debt payments. Consequently, the government urgently needs new and more frequent financing, although it faces demands for higher returns as payment for providing that financing.

“The increase in borrowing costs reflects the greater perception of risk regarding Colombia,” ANIF points out, adding that “Colombia’s medium-term sovereign risk exceeds that of countries with similar credit ratings.”

M.Pino

Source: elnuevosiglo

(Reference image source: Jakub Żerdzicki on Unsplash)

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