IMF tightens the reins on Colombia

Petro calls Georgieva “a vampire”

Colombian President Gustavo Petro said the International Monetary Fund (IMF) authorities were “vampires” who suspended his country’s access to a US$ 8.1 billion flexible credit line on Saturday.

The IMF, under Kristalina Georgieva, cited a significant deterioration in Colombia’s public finances and made the credit line contingent on completing an ongoing Article IV consultation and a mid-term review. ”Effective April 26, 2025, Colombia’s continued qualification for the IMF’s Flexible Credit Line (FCL) is contingent on the completion of the ongoing Article IV consultation and a subsequent mid-term review of the FCL,“ the IMF explained.

”Vampires come, but vampires disappear when the sun rises, Georgieva,“ Petro posted on X. He also linked the suspension to a previous loan taken by his predecessor, Iván Duque, which he claims was misused for subsidies to wealthy businessmen.

The current flexible credit line arrangement was approved on April 26, 2024, for two years with a mid-term review to access a continued rating, the IMF also said in a statement.

Petro noted his government is close to fully repaying this debt, while the Colombian Finance Ministry stated that consultations with the IMF were ongoing. ”Not being able to make use of the IMF credit, which would be crazy to do so, is linked to the fact that a credit has already been taken and is being paid. The credit that Duque took to face Covid was used in subsidies to the richest businessmen in the country,” Petro also argued.

Experts suggested the suspension was temporary, with a final decision expected by June or July 2025.rtos coinciden en que la suspensión es temporal, con una decisión final prevista para junio o julio de 2025.