President Gustavo Petro warned again of a possible default in Colombia if Congress does not approve the financing law to raise around 16 trillion pesos. However, Anif president José Ignacio López dismissed that scenario, stating only a budget cut would be needed. The debate in Congress's economic commissions was suspended due to lack of quorum and will resume on Tuesday.
President Gustavo Petro reiterated during the Council of Ministers the threat of a default if the tax reform, aimed at raising 16.5 trillion pesos from the wealthiest, is not approved. "There are dangers in the fiscal system, dangers that become reality if Congress does not approve the financing law. But if it is under Cepeda's orders, we would go to a possible default that I would avoid at all costs today," Petro stated. He added that the measure would lower debt costs and balance the impact of 79 trillion pesos paid over three years as expenditure without corresponding income.
Interior Minister Armando Benedetti backed the warning: "The risk and distrust in external debt payment grow because 10 senators from the Third Commission want to sink the financing law, which is the backing to guarantee its payment."
In contrast, Anif president José Ignacio López, speaking at the Infrastructure Congress in Cartagena, rejected the default possibility. "Those calls are made to set the political discussion atmosphere, but it is an imprecise statement because the government's financing needs are the same with or without the financing law," he said. According to Anif, without the reform, the 2025 General Budget of the Nation (PGN) would be cut by 16.3 trillion, leaving it at 530.6 trillion, requiring reductions in spending, which accounts for over 65% of the amount.
The debate in Congress's economic commissions started late and was adjourned due to lack of quorum on Wednesday, postponed to Tuesday. Initially, the project targeted 26 trillion, but was reduced to 16 and possibly to 10. Finance Minister Germán Ávila Plazas defended its necessity to fund the 2026 budget and avoid fiscal imbalances. Opponents like Senator Ciro Ramírez criticized the fiscal deficit: "When you spend more than you earn, you have a deficit. Mr. Gustavo Petro, tighten your belt and don't charge more taxes to Colombians." Senator Efraín Cepeda called it "the chronicle of a death foretold."
This is not the first time Petro has mentioned a default; he did so in May and June 2024 amid previous rejections of similar reforms.