Colombia bonds weaken with tax reform under pressure

colombia, tax reform, protests, bogota, LatAm, 575
By Oliver West
29 Apr 2021

Colombia’s sovereign bonds continue to trade wider as the government faces fierce opposition to a tax reform designed to salvage its investment grade rating. As protestors flocked to the streets on Wednesday to oppose the bill, which is being debated in Congress, the deputy finance minister said that the final version of the reform may not be as positive for government revenues as the initial version.

Spreads on Colombia’s dollar bonds have widened between 25bp-30bp in the past two weeks as the proposed tax reform — which was largely welcomed by credit analysts as an ambitious attempt to reverse the country’s increasing debt burden — has faced strong political opposition. Even the Centro Democrático, ...

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