Resolution 0359 of 2020, which certifies the interest rate and exchange rate risk coverage percentages for the purpose of projecting the interest and balance of the debt of territorial entities.
For the projections of the debt balance and interest payments referred to in Law 819 of 2003, a stressed exchange rate will be used, which includes risk coverage, is calculated as follows: 

a)    For the purpose of calculating the debt balance as of December 31, 2020, the exchange rate will be as follows:

???′?=????∗(1+(0.14229∗√?/365))

In this case, the TRMt is the exchange rate in force on the calculation date and n corresponds to the number of current days between the calculation date and 31 December 2020. 

b) As regards the estimate of the balance of the debt for subsequent periods, the stressed rate corresponds as follows: 

???′?=????∗(1+0.14229)

The ???? shown here corresponds to the exchange rate projected for the end of period j. The projections are based on the latest available Medium-Term Fiscal Framework. 

If the projections for periods subsequent to those covered by the last Medium Term Fiscal Framework, in this case, the ???? to be used would be the exchange rate of the last projected year, adjusted by the last available nominal devaluation in the assumptions of the Multi-annual Macroeconomic Program of the respective MFMF, therefore, the formula would be as follows:

???′?=????∗(1+???.???????)?-?∗(1+0.14229) 

TRMk corresponds to the exchange rate of the last year projected in the MFMP (year k), where i is a period not covered by the respective MFMP.

Regarding the estimation of the foreign interest rate risk coverage, a stressed reference interest rate will be used which would be:

?′?=??∗(1+0.741)

Rj corresponds to the reference interest rate projected for the J period. 

Finally, the internal interest rate risk coverage, will use a stressed interest rate that is defined:

?′?=??∗(1+0.741)

Where rt corresponds to the reference interest rate in force on the day of calculation.

Click here to get the full text of Resolution 0359 of 2020.