BOGOTA, June 30 (Reuters) – Miguel Gomez has been appointed finance minister by Colombia’s president-elect, Abelardo De La Espriella, Gomez told Reuters on Tuesday.
Gomez, a 65-year-old conservative, will be tasked with pushing ambitious economic reforms through a polarized Congress, where no single party holds a majority and the left is the leading force, in order to push through tax, budget and spending-reduction reforms.
He has previously served as a congressman, helmed the state-owned bank Bancoldex, headed the insurance industry’s Fasecolda association and the flower sector’s prominent Asocoflores.
Gomez’s appointment will be closely watched by financial markets, which are looking for signals regarding the pace and depth of fiscal adjustment, the new government’s financing strategy and the scope of any potential tax reform.
De La Espriella has promised to cut taxes, ease regulations and shrink the state by 40% to address a large deficit that has impacted the country’s credit rating.
In mid-June, the finance ministry revised its fiscal deficit target for this year to 5.3% of gross domestic product (GDP), from a previous 5.1%, estimating that a tax reform of 30 trillion pesos ($8.54 billion) would be needed for the 2027 budget, which has not been endorsed by the incoming administration.
The independent Autonomous Fiscal Rule Committee (CARF) estimates the new government will have to cut spending by $5.6 billion in 2027 and by an unprecedented $20 billion, or four percentage points of GDP, over its four-year term to avoid default.
De La Espriella has also promised to revitalize the mining and energy sector by resuming exploration contracts, a move aimed at attracting investment, boosting economic growth and strengthening tax revenues.
The new government will take office on August 7.
(Reporting by Nelson Bocanegra; Editing by Daina Beth Solomon and Kylie Madry)
