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Itaú Say Further Watering Down Of Reforms Likely

COLOMBIA
  • Itaú have noted that leaked audio recordings have raised questions around some campaign financing during the Petro presidential campaign and these recent political developments will further complicate the president’s tenure.
  • Given the amounts diverge from audited campaign numbers, there are questions over the sources, uses, and accounting of the COP 15 billion in question. The revelation may lead to an investigation in the House of Representatives.
  • Recent events, along with a fraying government coalition and a challenging structural reform package in Congress will likely keep political noise elevated.
  • Petro is proposing changes in healthcare, pension, and labor legislation. Recently the lower house committee approved most articles of Petro’s controversial healthcare reform bill, aimed at increasing the role of the state and primary care. The latest developments will likely result in further watering down of reforms as congressional support fades.
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