Approval of Nation’s General Budget for 2022, and allocation of resources for public debt

The approval of the PGN for 2022 was made for a total of COP$350,4 billion. 

For the allocation of resources in the PGN, these are some major aspects to be taken into account: 

• Increase in the investment account for COP$11 billion versus 2021, for a total of COP69,6 billion, representing an increase of 18,8% for 2022.
• Public debt account, allocated for COP68.4 billion, being the account with the highest destination of resources.
• National Registry increasing its allocated amount for 100,4% versus 2021 taking into account the upcoming presidential elections.
• Education, receiving an increase in 4% versus 2021, for a total of COP$49,4 billion.
• Science, having a reduction of 20% versus 2021.
• Resources allocated for peace matters, which increased by 4% versus 2021, for a total of COP$598.000.

The PGN includes an allocation of current incomes up to COP$170,8 billion, capital resources for COP$146,7 billion, public establishment incomes for COP$18,3 billion, especial fund resources for COP$12 billion and parafiscal revenue for COP$2,4 billion.

Among the sources of financing to be highlighted are the internal and external credit resources, which jointly passed from COP$64.08 billion for PGN of 2021 up to COP$102,1 billion, meaning an increase of 60% for 2022.

Regarding foreign investment, the PGN stablished COP$70,52 billion to be allocated for debt, being the highest amount in Colombian history with a 22,4% of the PGN, representing 31,5% increase versus COP53,61 billion of PGN of 2021. Taking into account this, towards international qualification firms, Colombia must search to reduce the Foreign investment and Fiscal deficit, which up to-date has shown to be in a higher rate than the rate determined for counties qualified as BBB and BB. 

From the total COP$70,52 billion allocated to debt, COP$35,97 billion are allocated to principal and COP$33,3 billion on interests, and an average of COP$46,8 billion to internal debt and COP$23,6 billion for external debt, principally represented in the maturity of securities and credits with international organisms as World Bank, BID, CAF, among others.
 

COP $3.3 billion auction on renewable energy projects in Colombia

The auction allocated 11 projects for COP$3.3. billion which will provide 4.800 employments in nine departments in which the new generation complexes will be built. These allocations were assigned by 763,3 MW, sufficient to cover the consumption of up to 800.000 families.

The obligations of the contracts have a term of 15 years, having a weighted price assigned of COP$155,8 by kilowatt per hour for the nine generating companies and 53 retailers, among which five are new international companies in the sector and five of the projects allocated have a generation capacity of 335 MW.

This allocation of energy production multiplies by 100 times the capability in non-conventional renewable energy sources that Colombia had by 2018. 
 

Financial sector has disbursed credits for more than COP $18.02 billion

Between October 2 and 15, 2021, the financial sector disbursed 15,35 million credits for COP18.02 billion, which, added to the credits disbursed since the beginning of the Covid-19 pandemic, has provided for personal and economic finance of companies and families 485,38 million of credit operations for a total of COP$604,50 billion. 

From the first weeks of October, companies had received COP$9 billon, followed up by individuals in various uses with COP$4,66 billion; personal credit cards for COP$3,20 billion; homes that are not social interest housing (VIS) for COP$651.168 million; micro-enterprises for COP$265.699 million, and VIS homes for COP$198.147 million. 

Up to October 20, 2021, the credits being backed up by the National Warranty Fund (FNG) was of 882.576 for COP$22,7 billion, allocated in Bogotá for COP$7,08 billion, Antioquia for COP$3,82 billion, Valle for COP$2,15 billion, Atlántico for COP$1,40 billion and Santander with COP$1,07 billion.

As well, the Program for Support of Debtors (PAD), which ended last August 31, 2021, and could be extended, reported up to September 30, 2021 a total of 2.21 million of debtors that reseted their credits for COP$34,9 billion, of which COP$9,81 billion correspond to free investment credits; COP$5,65 for credit cards; COP$3,54 billion for Small and Medium Enterprises (PYME); Corporate segment for COP$2 billion, no VIS homes for COP$1,87 billion, leasing for COP$1,85 billion and corporate credit for COP$1,69 billion. 

Finally, up to October 20, 2021, there were reported 14,7 million of transactions for COP$24,66 billion, of which the majority were made through internet for COP$15,22 billion, offices services for COP$6,71 billion and mobile banking for COP$1,60 billion.
 

Colombia has issued COP $1.49 billion in green Public Debt Securities (TES)

After an initial finance transaction of COP$750.000 million in green TES, being the second issuing of this type in Latin América un a local market and in pesos, the Ministry of Treasury issued a second financing with green Public Debt Securities (TES) last October 27, 2021, reaching 1.5 times the projected financing amount.  

Havin available up to COP $2 billion to issue green TES, the Ministry of Treasury could, at least it it considers it viable, issue a third financing round of green TES of up to COP $514.000 to reach the COP $2 billion limit.

The second auction of green TES was made by COP $650.000 million, with a 7.877% ratio, having a 15-point difference with the conventional TES of the secondary market, which had a rate of 8.025%, representing a difference of COP$6.000 million, in contrast with the first auction where the green TES rate was of 7.556%, being lower than the conventional TES rate of 7.630%.

With this last auction, the bonds issuing goal for the finance plan of 2021 was fulfilled, leaving an upcoming focus from the government to construct the new green expense portfolio that will be part of the following TES auctions of 2022, taking into account the recently approved National General Budget by the Congress.
 

Consumers Trust Indicators has reached its highest level since September

The DANE registered a Consumers Trust Indicator of 37,77, increasing 1,8 points compared to August, and 4,2 points versus annual basis. This increase, thus being positive, is below the barrier of 50 points, which could still be translated to a pessimism, but being at its highest point since the beginning of its measurements. 

This indicator shows the increase of trust from homes in the economic reactivation and recovery in the labor market, as well as the reports up to September of the vaccinated homes, which was in 78,7%, supporting the economic reactivation. 

Following the indicators by city, the highest indicator is shown in Cúcuta, Norte de Santander, with 43,4 points, followed by Santa Marta, Magdalena, and in the cities with the lowest indicator are Popayan, Cauca and Bogotá D.C.