Colombia could default on payment of external debt, official says
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BOGOTA, Sept 17 (Reuters) -Colombia is at risk of failing to meet its foreign debt repayments because a special congressional committee has not reached a quorum, preventing it from carrying out a certain procedure that is needed to make payments, the director of public credit said on Tuesday.
In addition to the risk of defaulting on payments, it is also slowing down the disbursement of credits from multilateral lenders like German state bank KfW, Jose Roberto Acosta told journalists.
The committee must meet to authorize or deny bond issues, as well as contracting external loans. Though the government can ignore the decision, operations to pay debt remain stuck until the committee convenes.
"The need to allow the government to issue bonds abroad and sign contracts with multilateral loans that are needed to continue honoring the payment of credits and debt service has been taken into consideration," Acosta said.
"Given that there have been six meetings without quorum, Colombia is at high risk of defaulting," he said.
Reporting by Carlos Vargas and Nelson Bocanegra
Writing by Oliver Griffin; Editing by Aurora Ellis
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