President Gustavo Petro defended the placement of US$4.95 billion in bonds, Colombia's largest issuance ever, as a measure to lower the current debt costs. He linked this to the economic emergency decree, warning that its annulment by the Constitutional Court would raise borrowing expenses again.
On January 14, 2026, President Gustavo Petro addressed in public statements the recent issuance of US$4.95 billion in bonds, part of the financing plan for the 2026 General Budget. This operation, the largest in the country's history, aims to increase external indebtedness to stabilize national finances.
Petro emphasized that this measure, along with the economic emergency decree, has reduced the country risk and lowered interest rates from double digits to a range between 5.9% and 8%. "If the State is given the capacity to pay its debt, the cost of the debt decreases: that's what the economic emergency decree did. We are on the right path in economic policy," the president declared.
The decree, issued as a 'subsequent fact' due to the unsustainable rise in debt costs, increased taxes on the wealthiest to improve its sustainability. Petro warned that if the Constitutional Court, under Magistrate Carlos Camargo, annuls it, debt costs would spike again. "Proof that the subsequent fact was the rise in debt costs until it became unsustainable, as we told the Court," he stated.
Additionally, despite a real 18% increase in the minimum wage last year, production costs fell 2%. Petro asked Finance Minister Germán Ávila to desindex VIS housing from wage adjustments to avoid price impacts. He criticized the previous Iván Duque government for over-indebtedness, worsened by devaluation and high interest rates from the Banco de la República.
The president urged the Ministry of Finance to continue swapping expensive debt for cheaper to stabilize finances before potential political interferences.
