This institution, which groups the country's banks, made a proposal to extend the liquidation times of the short-term debt to 2, 3, 5 and 7 years, which Minister Posada confirmed today will be taken in part, paying a little more than US$1.3 billion in the previously established term and US$1.5 billion under a new structuring with new terms.

"This is an operation through which we are going to cancel that short-term debt, that is to say, we are going to pay it and we are going to make new issues, this is how it is conceived, the proposal does not constitute an exchange. Many people have said that this is a debt swap, it is not an exchange. We are going to cancel, we are going to pay these short term commitments and we are going to extend their maturities", said the minister of Finance.

Private banks are the holders of US$1,500 in debt, while the remaining US$1,300 million are held by brokerage firms, securitization companies, insurance companies, just to mention a few, he indicated.

In addition, Posada adds that they would be borrowing at an average rate of 8.83%, which is a lower rate than the market rate for those terms, and that through scheduled amortizations, they will generate savings in terms of interest.

When asked if the US$1.3 billion that will not be restructured will be paid at maturity, if a new debt will be issued, the answer was categorical and said no. "In fact... we reduced it (indebtedness) to 25% in 2022, in 2023 it was also set at 25%.

"In fact... we in 2022 reduced it (indebtedness) to 25%, 2023 was also set at 25%. We have not increased it and our objective is not to fall back into the issue of continuing to issue Treasury Bills and Treasury Certificates, but rather, to generate that space that provides greater stability and greater sustainability of the public debt", pointed out the minister of Finance.

Translated by: A.M