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COLOMBIA: Flight Schedules Normalise as Fuel Stock Concerns Abate

COLOMBIA
  • Airlines on Monday scrapped flights from Colombia, blaming dwindling fuel stocks, then reinstated most of them as industry officials and the government disagreed on the cause of the interruption. The government denied there had ever been a shortage, and blamed fuel distributor Terpel for not doing its job.
  • Recapping weekend news, Finance Minister Ricardo Bonilla said the government is close to reaching a deal with banks for an initiative that forces them to lend money at low interest rates to strategic economic sectors.
  • The policy initiative is part of the broader strategy by the Petro administration to boost growth and a new meeting is expected this week. As a reminder, Bonilla has consistently been the most dovish member of the central bank board, frequently in favour of bolder rate hikes than have been delivered. BanRep’s next meeting is on September 30, where some believe the board may accelerate the pace of monetary policy easing.
  • Today, Fedesarrollo will publish data on industrial and retail confidence.

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