An International Monetary Fund (IMF) mission headed by Mr. Marco Piñón, Advisor in the Western Hemisphere Department has stated in his statement issued in Bogotá.

The statement read:

“Economic policies before and after the global crisis were appropriate to ameliorate the impact on Colombia. The central bank lowered its policy rate by 650 basis points since late 2008 and fiscal policy was countercyclical. The flexible exchange rate and the sound financial system were also instrumental in mitigating the effects of the external shocks.”

“Output growth is expected to pick up to about 2-2.5 percent in 2010 as monetary and fiscal policy remain supportive of domestic demand and the sound financial system provides a strong basis for a resumption of credit. Inflation is expected to rise due to temporary increases in food prices related to El Niño but nonetheless remain within the 2-4 target range during the year. The balance of payments position is expected to improve, with strong capital flows expected to more than cover the increase in the external current account deficit.

“Colombia's public debt remains moderate, and is projected to decline over the medium term, as sustained growth resumes. Colombia has a strong institutional fiscal framework, and is well placed to strengthen it further by adopting a fiscal rule. The mission highlighted the international experience with fiscal rules, and welcomed the authorities' plans to adopt one in the future.”