Colombia’s Finance Minister Diego Guevara may resign due to differences with President Petro over budget cuts. While the finance ministry denies having official information about the resignation, sources indicate Guevara’s departure is imminent. His exit raises concerns regarding political and economic stability in Colombia, alongside worries about future interest rate cuts and fiscal management.
Colombia’s Finance Minister, Diego Guevara, is reportedly preparing to resign amid disagreements with President Gustavo Petro, according to multiple media outlets and an informed source. Nevertheless, the finance ministry has stated that it does not possess any official information regarding this situation and will communicate updates as necessary.
Guevara, who has served in his position for just over three months and was previously the vice finance minister, is said to have encountered conflicts with President Petro over budget cuts. A source from the presidential palace indicated that Guevara tendered his resignation on Monday night. However, another source from Petro’s office affirmed that there had been no confirmation of Guevara’s departure and that he remained in his position.
Local radio station Caracol reported that Guevara may be succeeded by German Avila Plazas, head of Grupo Bicentenario. Analysts have expressed concerns about the stability of Colombia’s public finances, particularly highlighting that upheaval in the cabinet and the profile of a new minister could exacerbate political and economic instability, as indicated by Banco de Bogota.
The potential shift in leadership raises uncertainty regarding anticipated interest rate cuts by the central bank at the end of March, as noted by Banco de Bogota. Furthermore, the Colombian peso fell 1.08% on Tuesday, trading at 4,118 per dollar. This development is occurring as the government considers delaying budget expenditures for 2025 due to ongoing fiscal challenges that have already necessitated spending reductions.
In summary, the potential resignation of Finance Minister Diego Guevara marks a significant point of contention within the Colombian government, reflecting broader challenges related to budget management and economic stability. With Guevara’s departure reportedly influenced by disagreements with President Petro over fiscal policy, the implications for the country’s financial strategy remain uncertain. As noted by analysts, these developments could lead to increased instability in both the political and economic landscape of Colombia.
Original Source: theprint.in
