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Colombia swapped $641 million in local public debt last month -Breaking

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© Reuters. An employee at Bogota’s store counts Colombian pesos on December 28, 2018, 2018. REUTERS/Luisa Gonzalez

BOGOTA, (Reuters) – In April Colombia exchanged its internal debt for 2.6 trillion pesos (641 million dollars). This was part of an attempt to decrease amortizations and increase the country’s debt profile.

The ministry recently traded TES securities due in 2023, for other inflation-related securities due in 2035 or 2037, and peso denominated paper due in 2042.

The ministry stated that the transactions were made at market prices, and contributed to the improvement of Colombia’s public debt profile. The ministry stated that the paper’s median lifespan was 8.97 years. It then grew to 9.08, and the average coupon dropped from 9.10% (to 9.08%).

According to the report, the swap did not affect the country’s net indebtedness. TES paper is Colombia’s most significant financing source after tax revenue.

In March, the government exchanged 2.3 trillion pesos of paper and estimated that its net public debt would be 62.7%.

($1 = 4,056.41 Colombian pesos)

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