18 of March 2020
COVID 19 | ECONOMIC AIDS AND FINANCIAL GRANTS
Regarding the economic aids and financial grants, the government has announced the creation of a new credit line subsidized by the national government with Bancoldex for up to COP 250,000,000,000 (US$ 64,000,000 approx.) for the tourism and aviation industries with the aim of supporting the liquidity of these industries affected by the outbreak.
Moreover, the Central Bank and the Department of Treasury have announced a set of intervention measures to the exchange market after the devaluation of the Colombian pesos in exchange to the American dollar, caused mainly by the drop of oil prices and the Coronavirus social effect.
Although the Central Bank will not intervene to determine the value of the American dollar or to establish a threshold to the value, the entity will implement the same measures as other governments have developed in their economies. Therefore, the Central Bank will place and offer short-term non – deliverable forwards (NDF) for up to USD1,000,000,000. With this measure, the government intends to reduce the volatility and the risk of obligations and debts which were contracted in a foreign currency.
The Central Bank also has decided to receive from the participants of this NDF program, not only public negotiable instruments, but also high-qualified private negotiable instruments as guarantee for the liquidity that the entity will offer through these operations. Finally the quotas for these operations will be increased up to 17 billion Colombian pesos.
You can find other measures adopted in the following bulletin.