## Colombia: Selected Issues

_IMF Staff Country Reports, May 25, 2016_

## Source details

**Canonical URL:** [Colombia: Selected Issues](https://www.imf.org/en/publications/cr/issues/2016/12/31/colombia-selected-issues-43924)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/colombia-selected-issues-43924/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/colombia-selected-issues-43924/index.json)
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## Bibliographic details
- Published: May 25, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484367520.002

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### Overview and central findings
- Presents an assessment of the monetary policy stance and broad financial conditions in Colombia, providing insights about macro-financial linkages.
- Documents an increase in nonfinancial corporate debt and leverage in recent years, supported by easy access to capital markets, abundant global liquidity, and low interest rates.
- Notes that some sectors look somewhat more strained than others: oil, gas, and airlines.
- Indicates that debt servicing capacity has improved with recent economic growth.
- Identifies three possible drivers of inflation dynamics in Colombia:
  - exchange rate pass-through,
  - the El Niño meteorological phenomenon,
  - wages.
- Reports that the Colombian peso depreciated in line with the decline in oil prices, pushing up tradable-goods inflation.

### Analysis of monetary policy and financial conditions
- Assesses the monetary policy stance (monetary policy rate, monetary policy tightening, monetary policy stance) in the context of observed inflation and exchange rate movements.
- Links broad financial conditions to corporate-sector developments and credit dynamics.
- Highlights the role of global liquidity and low interest rates in supporting corporate access to capital markets.

### Corporate sector and credit risks
- Documents rising nonfinancial corporate debt and leverage.
- Flags sectoral strain concentrated in oil, gas, and airlines.
- Notes improved debt servicing capacity due to recent economic growth.
- Discusses implications for stress testing and financial sector policy and analysis.

### Inflation dynamics and drivers
- Explores exchange rate pass-through as a driver of inflation, with emphasis on tradable-goods inflation.
- Examines the potential impact of the El Niño meteorological phenomenon on prices.
- Considers wages and inflation expectations as another channel affecting inflation.

### Publication metadata and subjects
- Publication date: May 25, 2016
- Pages: 52
- Volume: 2016
- Issue: 134
- Series: Country Report No. 2016/134
- DOI: https://doi.org/10.5089/9781484367520.002
- Stock No: 1COLEA2016003
- ISBN: 9781484367520
- ISSN: 1934-7685
- Subjects: Banking, Central bank policy rate, Corporate sector, Credit, Economic sectors, Exchange rate pass-through, Financial sector policy and analysis, Foreign exchange, Inflation, Money, Prices, Stress testing
- Keywords: Corporate sector, CR, Credit, Exchange rate pass-through, financial condition, Global, Inflation, inflation expectation, interest rate, ISCR, monetary policy, monetary policy rate, monetary policy stance, monetary policy tightening, South America, Stress testing, y inflation

*Colombia: Selected Issues, IMF Staff Country Reports No. 2016/134 (May 25, 2016).*

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## Content in this bundle

- **Colombia: Selected Issues; IMF Country Report 16/134; April 18, 2016**
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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/colombia-selected-issues-43924_