2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia

Abstract

2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia

Fund Relations

(As of March 27, 2020)

Membership status: Joined: December 27, 1945; Article VIII.

General Resources Account:

article image

SDR Department:

article image

Outstanding Purchases and Loans: None.

Latest Financial Arrangements:

article image

Projected Payments to the Fund (in SDR million):

article image

Implementation of HIPC Initiative: Not applicable.

Implementation of Multilateral Debt Relief Initiative (MDRI): Not applicable.

Exchange Rate Arrangement: Colombia has a floating exchange rate regime (de jure: free floating; de facto: floating). The previous exchange restriction subject to Fund approval under Article VIII arising from the special regime for the hydrocarbon sector (see IMF Country Report No. 13/35 for details) has been removed after the implementation of Article 95 of RE. 1/18 on 3/25/2020.

Article IV Consultation: The last Article IV Consultation was concluded on April 29, 2019 (IMF Country Report No. 19/106).

FSAP participation and ROSCs: The FSAP took place in 2000 and was updated in 2008 and 2013. A data ROSC took place in 2006 and a fiscal ROSC in 2003.

Technical Assistance:

article image

Relations with other International Financial Institutions

World Bank Group:

Inter-American Development Bank:

Statistical Issues

(As of February 14, 2020)

General. Macroeconomic statistics are adequate for surveillance. Colombia subscribes to the Special Data Dissemination Standard (SDDS) since 1996 and metadata are posted on the Fund’s Dissemination Standards Bulletin Board (DSBB).

National Accounts: The National Department of Statistics (DANE) is responsible for the compilation of the national accounts, although the Banco de la República (BdR) compiles the financial accounts. Annual and quarterly estimates of GDP by the production and the expenditure approaches use 2015 as the reference year for the annually chained volume measures. The national accounts statistics cover the accounts and aggregates included in SNA2008. The corresponding SNA2008 accounts and tables which the inter-ministerial working group on national accounts (GITCN) identified as minimum requirements and recommended for implementation of SNA2008 are compiled on a regular basis, as listed below: annual value added and GDP at current and constant prices for the previous year, and with a chain volume series in 2015 cop by activity; annual expenditure on GDP at current and constant prices for the previous year, and with a chain volume series in 2015 cop; components of annual value added at current prices by activity; sequence of accounts of the economy as a whole (up to net lending) with annual frequency; annual accounts of the rest of the world (up to net lending); quarterly value added and GDP at current and chain volume series in 2015 cop by activity; quarterly expenditure on GDP at current and chain volume series in 2015 cop; and annual supply-use tables. STA continues to assist DANE and BdR on improving sectoral accounts and developing quarterly accounts by institutional sectors.

Price Statistics: DANE is also responsible for price statistics, and currently compiles and disseminates the consumer price index (CPI) and the producer price index (PPI). The basket and weights of the CPI were updated in 2019, with the support of STA technical assistance, based on 2016/17 household expenditures. STA is assisting DANE and BdR to improve residential property price statistics.

Government Finance Statistics: The Ministry of Finance and Public Credit (MFPC) is responsible for the compilation of public revenue, expenditure, and financing data. The Colombian authorities have reaffirmed their commitment to adopt the GFSM 2014 framework, enhance inter-institutional coordination, and increase the resources allocated to compiling government finance statistics. The latest reported data has been published in the Government Finance Statistics Yearbook (GFSY). Next steps include: aligning classification of revenue and expense with GFSM 2014 framework, improving consolidation, adopting a common list of public sector entities, and disseminating high-frequency data on a national and international level. The General Accounting Office (GAO) developed a single accounting framework for the public sector based on International Public Sector Accounting Standards and maintains a financial management information system containing accounting information of all public sector units. The MFPC’s Macroeconomic Policy Unit and the GAO developed a bridge table that converts national accounting classification to the GFSM 2001 framework to compile GFS on accrual and cash bases.

Monetary and Financial Statistics: The Banco de la República (BdR) reports the Standardized Report Forms (SRFs) 1SR for the central bank, 2SR for the other depository corporations (ODCs), and 5SR for monetary aggregates for publication in the IMF’s International Financial Statistics (IFS) on a monthly basis with a lag of two months for the 1SR and 4 months for the 2SR. The Superintendencia Financiera de Colombia (SFC) compiles data for other financial corporations (OFC) using SRF 4SR. However, the last reported OFC data are for December 2014. This delay in reporting is due to an ongoing review of the SFC and efforts to map the former to the International Financial Reporting Standards (IFRS). The classification of financial instruments and economic sectors follows the MFSM.

The Banco de la República (BdR) reports data on several series indicators of the Financial Access Survey (FAS) including the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs).

Financial Sector Surveillance: Colombia has reported Financial Soundness Indicators (FSI) beginning from 2005 up to 2019. Colombia reports all core and ten encouraged Financial Soundness Indicators (FSI) for deposit takers on a regular monthly basis. The FSIs indicators along with metadata are available on the IMF’s website (http://data.imf.org/).

External Sector Statistics: The BdR is in charge of compiling and disseminating quarterly balance of payments and international investment position (IIP) statistics, which are produced on a sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) basis. Improved surveys, particularly in the services sector, have enhanced the coverage of balance of payments statistics. Recording of transactions in securities between residents and nonresidents in secondary markets could be improved. The BdR also monthly compiles and disseminates the Data Template on International Reserves and Foreign Currency Liquidity, reports semi-annual data to the Coordinated Portfolio Investment Survey (CPIS), and submits quarterly external debt statistics to the Quarterly External Debt Statistics (QEDS) database. However, Colombia has not reported data to the Coordinated Direct Investment Survey (CDIS) yet.

Colombia: Table of Common Indicators Required for Surveillance

(As of February 14, 2020)

article image

Daily (D); Weekly (W); Monthly (M); Bi-monthly (B); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The GG consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Colombia: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia
Author: International Monetary Fund. Western Hemisphere Dept.