In order to enhance fiscal sustainability and regain “investment grade” credit rating, in 2011 Colombia implemented a fiscal rule (FR) on the Central Government's structural balance. Investment grade was rapidly attained, and FR targets were complied with, until 2019. Using the Synthetic...

Clavijo Vergara analyses the dynamics of Colombia's public and external debt over the period 1997-2003. He argues that a proper assessment of debt sustainability requires that the cost of serving the debt is computed on a gross basis (i.e. including the interest payments on intra-governmental...