‘Ghost of going down to the border market continues, despite improvements’

One of the achievements that the Government has shown, after the fifth working group ‘Capital Market in Colombia, investment destination’whose objective is to establish a policy of reactivation of this market, has been the increase in liquidity, which allowed MSCI not to demote the country to a frontier market, which would have caused foreign funds to view Colombia with much less interest.

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However, this situation has not been completely resolved since “the ghost is still there”so you have to continue working to improve the environment and conditions for national and foreign investors to place their resources in the market, said Magda Fernanda Vásquez, Deputy Superintendent for the Capital Market of the Financial Superintendence of Colombia.

The program seeks to establish a policy of reactivation of this market, encouraging the participation of new issuers and making it more attractive for national and foreign investors.

The official said that of the five tables that have been held so far, two were held at the end of 2023 and three were made during 2024 and the next one will be in April 2025.

In the most recent one, attended by more than 100 representatives of public and private entities, the Financial Superintendent, Professor César Ferrari, reiterated that the general figures of the Colombian capital market show that it is still very small, which is why he highlighted the importance of the inter-institutional working group in which fundamental issues have been addressed to encourage its development.

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Representatives of the state entities that lead the working group participated in the meeting, such as the Regulation Unit for Regulatory Projection and Financial Regulation Studies (URF) of the Ministry of Finance, Dian, Ministry of Commerce, Industry and Tourism, Colombian Stock Exchange, Self-Regulator of the Stock Market, Asobancaria, Asobolsa, Asofiduciarias, Afic, Fasecolda, Asofondos, issuers, law firms and representatives of universities Javeriana, Externado de Colombia y de los Andes.

“It is satisfying to see the convening of this last working group of the year, not only because of the large attendance, but because of the conversations and proposals that resulted from this meeting”indicated Magda Fernanda Vásquez.

In the fifth table, the activities developed in 2024 in each of the pillars defined to strengthen liquidity, the issuer base, accessibility and promotion of the capital market as an important financing and investment alternative. Among the activities worth highlighting are the issuance of regulations related to the liquidity mechanisms of the capital market.

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HOLMAN RODRÍGUEZ MARTÍNEZ
Portfolio