President-elect Abelardo de la Espriella announced on 2 July that he had instructed his designated finance minister, Miguel Gómez, to travel to Washington for meetings with international banks and multilateral financial institutions. The move comes as Colombia’s net public debt reached 61.5% of GDP in the first quarter of 2025, up from 54.1% a year earlier, and the independent fiscal rule committee (CARF) projects the fiscal deficit at 7.4% of GDP for 2026. The national budget still has a financing gap of COP 303 trillion, equivalent to 54.5% of the total, while tax revenues are running COP 32 trillion below target, according to the comptroller general’s office.

The refinancing effort aims to extend maturities and lower interest rates on public debt, providing fiscal breathing room. Gómez has outlined a two-stage strategy: first, a spending cut of at least COP 60 trillion from the 2027 budget to narrow the deficit, and then a tax reform designed to stimulate growth rather than raise rates. He described the deficit as the “biggest bomb” inherited, noting that monthly government spending averaged COP 40 trillion against revenues of COP 28 trillion. The reform would seek to rebalance the tax burden from companies, which face some of the highest effective rates globally, towards a broader base of individuals, while protecting micro and small businesses.

In Washington, Gómez will meet with the World Bank and other institutions; vice-president-elect José Manuel Restrepo has already held talks with the World Bank to launch a cooperation agenda for investment and strategic projects. The pressure is compounded by the pace of domestic debt issuance: the government has already used 78% of its authorised TES bond quota for 2026, and at current rates the limit will be reached by mid-August. Analysts in Bogotá note that the incoming administration may need to expand the issuance cap, rely more on short-term paper, conduct debt swaps, or return to international capital markets.

The outgoing government plans to present a tax reform bill on 20 July, but its content remains undefined. CARF estimates that without a reform worth 1.4% of GDP, meeting the 2027 primary balance target would require a fiscal adjustment of 3.7% of GDP. The incoming team has indicated it will first focus on spending cuts and then design its own reform after taking office on 7 August. The immediate milestone to watch is the outcome of Gómez’s Washington meetings and any signals on the 2027 budget framework.