IMF urges Colombia to tighten fiscal adjustment, increase reserves
BOGOTA (Reuters) - Colombia needs a more durable fiscal adjustment to meet its financial targets, the International Monetary Fund said on Friday, adding that the country's central bank should increase reserves to protect against external shocks.
Hamid Faruqee, chief of the IMF's mission to Colombia, highlighted recent improvements in tax collection and spending efficiency.
But in remarks to reporters, after the IMF trimmed its growth forecast for Colombia to 3.4% this year from a previous forecast of 3.5% in January, Faruqee said the Andean country should seek to further reduce public debt as a percentage of gross domestic product.
Debt-reduction measures can include ...