Colombia Conducts Its Largest Debt Swap on the Market: How the Operation Worked

 

The government claims it reduced the local public debt balance by COP 8.02 trillion and improved fiscal conditions, amid its seventh swap with market makers.

The Ministry of Finance and Public Credit, through the General Directorate of Public Credit and National Treasury, announced the successful completion of the seventh TES swap operation for COP 43.4 trillion.

How and how much are the fiscal savings?

The swap generated a demand of COP 28.13 trillion in its competitive component and a demand of COP 21.14 trillion in its non-competitive component, according to the Ministry.

The swap generated fiscal savings amounting to COP 1.7 trillion by 2025 due to interest, and the operation positively impacts the public debt balance, reducing it by COP 8.0 trillion.

Ultimately, the nation will receive short- and long-term bonds with maturities between 2025 and 2050 in exchange for long-term bonds with maturities between 2029 and 2058.