Colombia finds the price of peace

Rob Dwyer
Published on:

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Mauricio Cárdenas, Colombia’s finance minister, says the country won’t pay for peace with its fiscal stability.

Private sector estimates on the cost of a peace agreement with the rebel faction Farc – which has yet to be finalized – will be as high as 3.8% of GDP. While Cárdenas says that the costs are yet to be determined, because the peace accord is not yet finalized, he says there will be no change to the financial stability law that has underpinned Colombia’s recent growth.

"We are sticking to the fiscal rule, which we think is fundamental for our economic credibility," he says. "The framework we have has allowed Colombia to gain better access to the financial markets – we have a higher credit rating than we had four years...