Summary 2/2 - Col Taps IMF Support, Chile Pension Bill Approved

COLOMBIA - The Colombian Peso led global outperformance for another session Thursday, firming 1.6%.

• Colombia becoming the first country to access the FCL from the IMF added to the supportive price action for COP. Although the possibility of this event had been mentioned several months ago, the timing of the operation had been uncertain. Of the 5.3B, Banrep has acquired approximately 1.5B.
• If the MoF decides to start exchanging its remaining USD 3.8bn from the IMF credit line, this could lend further downside to USDCOP, that hit its worst levels yesterday since early March.
• Important to note, yesterday Moody's affirmed Colombia's rating at Baa2, but revised the country's outlook to negative from stable.

PERU - Interim President Sagasti, won an inaugural vote of confidence for his new cabinet after urging lawmakers to support his "precarious" government to bring stability ahead of a general election in April.