Colombia’s external debt grew again and in February reached one of its highest levels in recent years. According to figures released by the Central Bank (Banco de la Republica), the total balance reached US$252.2 billion, a figure equivalent to 55% of the country’s annual Gross Domestic Product (GDP).
Although there was a slight reduction of nearly US$1 billion compared to January, the cumulative increase compared to the same period last year is around US$30 billion, reflecting the progressive deterioration of public finances and the growing need for external financing.
The new data also confirms the fiscal pressure facing the Colombian government in the final stretch of President Gustavo Petro’s administration. In recent months, the Executive has attempted to increase tax revenues through different strategies, including tax reforms and economic emergency decrees, but several of those initiatives have been blocked by Congress and judicial decisions.
Meanwhile, the fiscal deficit continues to widen and is forcing the State to rely increasingly on debt to cover its spending needs.
Colombia’s external debt surges by US$30 billion to 55% of GDP
The Central Bank’s figures show that Colombia’s external debt continues to move at historically high levels. The total of US$252.2 billion recorded in February represents significant growth compared to levels observed a year earlier, when the debt was equivalent to about 52.9% of GDP.
Although the debt-to-GDP ratio has declined slightly in the first months of the year, thanks to economic growth and the appreciation of the peso against the dollar in some months, the total volume of obligations continues to rise.
The nearly US$30 billion increase in just one year reflects the need for fresh resources from both the public and private sectors. However, the largest share remains concentrated in the Government. According to official data, public external debt already exceeds US$157 billion, while the private sector accumulates around US$95 billion.
A large part of the growth in indebtedness has been associated with international bond issuances, multilateral loans, and higher long-term obligations. Market analysts believe Colombia has had to seek external financing more frequently due to falling tax revenues and the sustained increase in public spending.
The trend has also coincided with a complex international context. Global interest rates remained elevated during much of 2025 and early 2026, increasing borrowing costs for emerging economies such as Colombia.
Despite this, the Government continued turning to international markets to guarantee liquidity and meet budget commitments.
The fiscal deficit tightens pressure on public finances
Behind the increase in debt lies a structural problem that worries economists and credit rating agencies: the growing deficit in public finances. In recent years, the Government has struggled to balance revenues and expenditures amid greater budget pressures linked to subsidies, social programs, regional transfers, and debt payments.
The Finance Ministry has acknowledged that tax revenues have not grown at the expected pace. The economic slowdown in some productive sectors, lower business activity, and declines in certain revenues related to trade and income taxes have affected fiscal accounts.
In that context, the Petro government pushed different initiatives to raise State revenues. Some tax reforms sought to broaden the taxpayer base and increase the tax burden on specific sectors of the economy.
However, several proposals faced strong political resistance in Congress, where independent and opposition parties blocked key articles or limited the scope of the measures.
This was compounded by attempts by the Executive to use economic emergency decrees to obtain extraordinary revenue and spending powers. Some of those decisions ended up being reviewed by the high courts, which partially halted official initiatives after determining they exceeded the Government’s constitutional powers.
The result has been a scenario of growing fiscal tightness. With lower-than-expected revenues and greater spending commitments, the State has had to finance the gap through new debt, increasing external obligations and also raising interest costs.
Pressure on the economy and investor confidence
The increase in external debt also raises questions about the country’s fiscal sustainability in the medium term. Although Colombia still maintains access to international financing and retains the confidence of multilateral organizations, some analysts warn that the pace of indebtedness could become a source of pressure on the economy.
One of the main risks is related to debt servicing costs. As external obligations rise, the country must allocate more resources to interest and principal payments, reducing the margin available for public investment and social programs.
In addition, exchange rate behavior remains a sensitive factor. A potential sharp depreciation of the Colombian peso would automatically increase the value of dollar-denominated debt, adding pressure to public finances.
International rating agencies are also closely monitoring Colombia’s fiscal outlook. In recent years, several agencies have warned about the need to maintain budget discipline and control debt growth to avoid further deterioration in the country’s credit rating.
Despite these concerns, the Government insists the situation remains manageable and argues that part of the indebtedness responds to social and economic investments needed to sustain growth and reduce inequality. However, the debate over fiscal management has become one of the country’s main economic and political issues as the current administration approaches its end.
Meanwhile, Central Bank figures show that Colombia continues to depend heavily on external financing to sustain its public accounts. And although the debt-to-GDP indicator showed a slight improvement compared to previous months, the total volume of obligations continues to raise concerns about the country’s fiscal capacity in the coming years.