Colombia’s Finance Minister Diego Guevara may resign amid disagreements with President Gustavo Petro; his resignation is unconfirmed by the finance ministry. Analysts warn this could heighten political and economic instability as the government faces budget challenges. A potential successor, German Avila Plazas, is highlighted, with concerns over his experience.
Colombia’s Finance Minister, Diego Guevara, appears poised to resign amid reported disagreements with President Gustavo Petro. Although local media indicate Guevara’s departure, the finance ministry stated it does not have official confirmation regarding this situation and will provide updates when available. Guevara, who has held the position for slightly over three months, previously served as vice finance minister.
Sources from the presidential palace revealed that Guevara’s resignation follows disputes with President Petro, who recently replaced a significant portion of his cabinet. While local reports suggest that Grupo Bicentenario’s head, German Avila Plazas, is set to assume Guevara’s role, officials have yet to confirm this transition, stating that Guevara remains in his position.
Analysts caution that Guevara’s potential exit could exacerbate Colombia’s already shaky public finances. According to Banco de Bogota, the ongoing reshuffling of cabinet members and the nomination of a possibly inexperienced successor may increase both political and economic instability. There are concerns that these changes could affect anticipated monetary policy decisions, such as a potential interest rate cut expected at the end of March.
The Colombian peso suffered a decline of 1.08% on Tuesday, settling at 4,118 per dollar. The government is also weighing potential delays in 2025 budget expenditures, a reflection of existing budgetary challenges that have already necessitated spending reductions.
In summary, the potential departure of Finance Minister Diego Guevara highlights the ongoing instability within Colombia’s government. Disagreements over budget management with President Gustavo Petro may lead to increased economic uncertainty and complicate the government’s fiscal challenges. The situation remains fluid, with further developments anticipated as the finance ministry has yet to provide official confirmation of these changes.
Original Source: theprint.in
