. ,

E-144 a

RESTRICTED

This report is restricted to use within the Bank

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

COLOMBIA~S ECONOMIC POSITION

with special reference to the proposed $16.51nillion loan for the rehabilitation

of Colombia's principal highways

Economic Departm.ent Prepared by: Jacques Torfs

April 2, 1951

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COLOMBIA

Essential Statistics

Area

Populatio~ (1949)

Currency: Unit l'irfty

Trade -~xports

Impofts ($ million)

Budget Receipts ~enditures (million pesos) Balance

fucternal Deb t Disbursed Undisbursed Total

Eximbank (included) IBHD ( a.bove )

Cost of Living Index (Bogota) I~cember 1949

October 1950 January 1951

Total Gold and Exchange Reserves December 1949 . Decemb er 1950

450,000 square miles.

11.0 million.

peso y 1.95 pesos equals US$. (1 million pesos equals $51).000)

303 260

$ 128 ~6 . milllan $ 860 6 million $ 215., 2 million

$. 39.4 million $ 1101 million

310 399 397

$ ill million $ 101 million

392 334

516 497 1-19

1/ On March 20, 1951, the exchange system was revised) the effective rate for most pu~oses becoming Ps Q$ 2~50 to the US dollar. Official pari ty was not cr.anged.

No. 514 R

BALANCE OF PAYMENTS (MILLIONS or u. S. DOLLARS)

1937 TOTAL

RECEIPTS

PAYMENTS

1946 TOTAL

RECEIPTS

PAYMENTS

1947 TOTAL

RECEIPTS

PAYMENTS

1948 TOTAL

RECEIPTS

PAYMENTS

1949

TOTAL

RECEIPTS

o

......................... ......................... .......................... .......................... .......................... ......................... .......................... .........................

100 200 300

NONMONETARY EXPORTS GOLD I

(f.o.b.) EXPORTS

............................................................................ PA YM E N TS mmmmiiiiiiiiiiiimmimmiimiiiiiiimiiiiiiiiiiimiim~iii

1950 (Prllliminary)

TOTAL

RECEIPTS

PA Y MEN T S i~~~~iiiii~~iiiiiiiiiiiiiiiii~iiiiiiiiii~iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii~~iiiiii~iiiiii

COLOMBIA

400 500

I.B.R.D. - Economic Dept.

en a: CI ..J ...J 0 0

en :)

u.. 0 (/) z 0 :J == :E

NO.515R

COLOMBIA

MONnilY AVERAGES

EXCHANGE RATE 150 (Official without tox)

tOO

50

*Rote changed as of Dec. 17, 1948.

COFFEE EXPORTS COFFEE PRICES IN U. S. (MILLIONS OF METRIC TONS) (CENTS PER POUND)

2 . 0 ..----r----.----r---,---.----r--..---,-----r--r-r--~--, r--r-..---r-..---.-..-r---r----.-..--r--r--. ....,--..,.----.--,--,-....., 60

1.5

1.0

.5

YEARLY 114 LATIN AMERICAN ,--"" --, COUNTRIES _---.", " ,.-

" ,~ 1.8RAZIL ••••••••• ........ ....." ................. " ". I' ••• -

•••••••••• •••••••• COLOMBIA '.'

'39 '41 '43 '45 '41 '49

MONEY SUPPLY AND COST OF LIVING (INDEX, 1937 = 100)

40

----'-........ . .............. . ' ~--~, .................. \.

-••• -•• -•• -•• -•• -•• '..... BRAZILIAN SANTOS 4 ." ,.,1. I'

20

738 '40 '42 ~4 '46 '481 rr III IV I II III IV 0 1949 1950

a:: c ...I ..J o o u) :)

a:: LLI 0-(/) o (/) LLI a..

1000.---~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~ 1000

800

600 MONEY SUPPLY .,.,'

400 (END OF PERIOD) '\",

,,'

,'" ~ ~

200 _,,~ ~~~~~~~--------~

0'37 '39 '41 '43 '45 '47 '49 J J

1948 o J

1949

NATIONAL GOVERNMENT REVENUES AND EXPENDITURES (MILLIONS OF COLOMBIAN PESOS)

800

600

400

200

o J DO 1950

500~--~--~----~----~--~----~----~--~----~--~--~500

YEARLY PUBLIC DEAT

400 TOTAL EXPENDITURES**-- TOTAL REVENUES __ (END OF PERIOD) ---"~~--------4400

INVESTMENTsji:": ....

3001---- EXPENDITURES ~iii~ :)? ..... .. 200j---------------~~~~~--l

100

o 1940 1941 1942 1943 1944 1945 1946 1947 **Exc/udes debt retirement. t Breakdown not available.

1948

~1----~300

1O('j1----~ 200

rvvIl--------i I 00

1949 o

1950

I.B.R.D. - Economic Dept.

TABLE OF CONTENTS

I. Int+,oduction •• , ••• e' e •••.•••••• • • e •• e •••••• 1

II. Current General Position of the

III.

IV.

v.

Tables:-

Colombian Economy •.•.••.••. , .•••.•• e e" •• '. •• • • 2

Domestic Finance ••••••••••••••• " •••••••••

Fiscal ••••••••.• e·.· •••••••• f1" ••• ', ••.•.•

Monetary Policies ........ ,'W ........ ,. ••• '.

Foreign Trade Prospects ., •.•••• e •••• , ••• ,',

Balance of Payments Prospects •.• e •••••. , e ••

A - Balance of Payments - Summa~y statement.

A-I External Debt of Colombia,

4

4

5

6

8

A-2 Estimated Interest and Amortization Payments on the External Debt of Colonmia.

B Colombian National Budgets,.

COLOMBIA'S ECONOMIC POSITION - \VITH SPECIAL REFERENCE ID T"rlE PROPOSED $16.5 MILLJ;ON LOAN FOR TF~ REHABILITATION OF COLOMBIA'S

PRINCIPAL HIGHWAYS

I. INTRODUCTION

At pre$ent the Colombian Gove:rnment, assisted by a non.,-partisan

Economic Development Committee (hereafte+ refefred to as the Committee)

is engaged in:

(a) a formulation of an overall investment program for

Colombia;

(b) the preparation of plans for the execution of the

program; and

(c) the development of steps to be taken to ~eal with basic

proble~s in the fiscal, monetary, financial and admini-

strati ve fields.

Since the outcome of this work, which will not be known for some

time, will substantially affect Colombia's overall position, no attempt

is rnade at this time to make such a general assessment. Instead, this

report is limited to an appraisal of Colombia's ability to service and

repay an additional loan of US $16.5 million.' The Economic Department

will continue to follow closely the progress of the Colombian Government

with respect to (a), (b) and (c) above with a view to preparing a more

general assessment of the Colombian position at a later date.

-2-

II. CURRENT GENERAL POSITIo.N OF THE COLOMBIAN ECONOMY

On the whole, the main sectors of the Colombi.an economy 1;lave been

developing satisfactorily and ,both agricultural and inqustrial prod~ction

are now at relatively high levels.. In 1949, as a result both of inc'17e~sed

receipts from coffee exports and'a reduction in imports from the prev~ou~

yearts level, Colombia ach~eved a favorable trade balance a~unting to

$43 million, elminated about $45 million ~n accumulat~d arre~s in

international commercia]. payments and addeq, over $27 million t~ its net,

gold and foreign exchange holdings. In 1950, the :trade s\:..Il>lus was even

larger and exceeded US$ 58 million. Moneta~J pressures leading towards

inflation were less active in 1950 than in 1949: the increase in the

total money supply in 1950 was only 7% as compared with an increase of

?~ in 1949. The 1950 budget clo seo. with a s\l.I"Plus and it is very likely

that G~~ernment e~enditures for 1951, forecast at Ps.$ 500 million Wil~

be exceeded by tax revenues.

Tlier:e~were, however, some unfavorable de~elopments in the Colombian

economy in 1950" Adverse weather conditions and the ensuing deterioration

of transport interrupted the upward trend in agricultural output, which

declined by about ~~ from the 1949 crop year. The cost of living in

Bogota (the only satisfactory index available), which appeared to hs.ve

been stabilized in 1949, rose rather sharply in 1950 following the p~ssage

of a minimum wage law in December 1949, granting blanket wage increases

and bonuses for low and middle income wage earners. While effective action

taken in October 1950 stopped the rise in the cost of living, the index

-3-

as of :December, 1950 was 28% higher than in December 1949 while in the

previous year it had ri sen by only l:f%.

Prospects for 1951 are on the whole favorable. Crops in the last

~ix months seem to have been better than at the beginning of 1950. Meat

and dairy prod:Q.cts output was affected by an ep~demic of hoof and mouth

diseasE? which filtered through the Venezuelan borders, and the cotton

crop in Tolima was wiped out by parasites. In all, however, it is very

likelly that the over-all volume of produ.ction in 1951 will be higher than

in 1950. Coffee exports which amounted to only 4.72 milli.on bags last

year are expected to be at least 5 million bags in 1951. T4e price of

coffee in the New York markets has now reached US 6o¢ per pound, while

the average for 1950 was 53¢; for 1949 37¢, and 1939 l2¢.

In the5e favorable circumstances, the time was deemed ripe for

a refo~ of the foreign exchange rates anQ controls. The Government,

in March 1951, at the recommendation of the Committee, removed licensing

restrictions on imports, published a list of prohibited imports, and

set a rate of Ps~$ 205 per US dollar for all transactions except coffee

eA~orts, with a~ in+tial coffee export rate of Ps.$ 2.1 per US dollar

which is intended to be adjusted to tne over-all rate over a period of

years. The exchange p~ofit is to be invested through the Federation of

Coffee Gro,lI,rers and the Caja de Credi to Agraria in productive project$.

The Government al130 intends to eliminate all controls over movements of

foreign capital~ Althou~~ a slight increaee in the cost of living may be

expected to result from these changes) the Committee believes that any

increase will be temporary and that competition among traders ~ll

-4-

ultimately drive down the price of imported goods which are now often sold at

prices ten times higher than in the US.

Several development projects are currently underway. The construction

of new hydro-electric plants near the major industrial towns and the execution

of a number of irrigation programs in fertile valleys, should contribute to the

structural strength of Colombia's econor~-. At the same time Colombia is pr~

ceeding with the Paz del Rio steel project in a form which neither the General

Survey Mission nor the Committee was able to recommend and the merits of which

in the opinion of the Bank are doubtful. en the whole, h~Never, the current

situation would be bright were it not marred by political disturbances and

troubles. The ~ajor risk apparent in the Bank's operations in Colombia is the

possibility of a degeneration of the political situation to a point where the

economy vdll be adversely affected.

III. D01ffiSTIC FINANCE

Fiscal

The fiscal pos~tion of the National Government has improved, as shown

in Table (B). After taking into account transfers to supplement the revenue

of departments and mun~cipaJ.ities.'l a surplus of Ps.~ 19 million was recorded

in 19,0, and it is exp8Gted that the excess of receipts over expenditures in

1951 will be even largero A prospective 1951 surplus is likely to result from

increases made in customs tariffs at the beginning of 1951. The yield of import

duties is expected to amount to Ps.~ 200-240 million, while they are budgeted

at Ps.$ 110 milliono

The budgets of departments and municipalities which amounted to a

total of Ps.$ 450 million in 1950 were in deficit by about Ps.$ 50 million.

-5-

The budgeted expendi.tures for 1951 do not exceed 1950 levels and inasmuch as

the grov~h in National Income lends to the expectation of larger revenues, it

is likely that the deficit in the year 1951 will be slight.

These favorable fiscal conditions are not necessarily manifestations

of a sound economic policy. The national budget in 1950 was rather heavily

burdened by military and police expenditures, while capital exPenditures for

development purposes were below the 1949 level. The execution of a development

program mainly directed towards the improvement of transport and community facili-

ties would mean substantial increases in expenditures in the years to come. The

Committee estimated however, that these increases would not call for new taxes,

provided former trends of growth in national income continue, a better tax

collection system is established (from which source alone, the Conwittee believes,

an additional PS c $ 50 million in revenue could be obtained) and foreign financial

assistance is extended to Colombia at the rate of approximately US$ 20 million

per year. In other words, budget equilibrium could be maintained if the fore~gn

exchange expenditures involved in the major works of rehabilitation of the

country (highways, rc-dJ.roads, power development, irrigation and air transport)

could be financed from OY8:;:'seas.

Monetary Pnlicics

C'JI0rrlhj_a. 17.3.;:) bGe~'l plagued b~T iYl:flation since 1942. At the suggestion

of the COrrL"'littee t~19 cOITJp.eX'cial ba~1ks, by a gentlemen's agreement, established

a ceiling on loan po:tfolios i~ Ccto"O'3I' 1950-: Simultaneously, the National

GoverruneDt ~~l"'l·~;:tf)=>k to f.ollo,,;: R.nti-·inf'latiunary policies and the central bank

placed a li.r.:it on the volume of rediscounts o The money supply, which had

reached Ps ,~~ l,lOO million in September 19.50, decreased by more than Ps. $ 100 million

-6-

in the four ensuing months. This resulted in some reduction in co~mercial acti­

vities and in a progressive liquidation of cornnercial inventories which had been

piling up at a rate of US$ 100 million a year or higher. After five months of

rigid credit limitations, the need for some relaxation begins to be felt. However,

the Government seems determined not to relax its anti-inflationary measures unless

and until the Banco de la Republica has been reorganized. When this institution

has been provided with a new Board, with reduced commercial bank infl~ence, and

experts become available to the Banco who are able to analyze new policies and

their effects, credit vdll probably be made slightly easier for agriculture and

industry. Money supply would still probably be limited to Ps.$ 1,100 million

and would be reduced if velocity of circulation increases. This line may not

be held for very long. It is very likely that some very mild inflation will be

permitted.

IT. FOREIGN TRADE PROSPECTS

In the short run Colombia's foreign exchange trade receipts are likely

to be substantial: about US$ 450 million per annum, or three to four times the

pre-war level.

In spite of efforts to diversify export production, the re1ati't'e impor­

tance of coffee exports in Colombian foreign trqde has increased in recent years

because of rising coffee prices. In 1949, receipts from sales of coffee totalled

$242 million. In 1950, they are estimated to have reached $305 million, although

crop volume fell belovT expectations owing to the bad weather and the political

insecurity which prevailed during the year. Exports of petroleum in 1950 amount

to $65 million and all other exports to less than $30 million. Coffee thus supplied

about 78% of all foreign exchange receipts from exports.

Coffee exports in 1951 will probably be about 5 million bags. At an

average of US 58¢ per pound f.o.b. coastal ports, this would bring in receipts

-7 ...

of US~ 382 million for the year 1951.. The outlook for coffee is good and the

value of coffee exports is very likely to remain at this level for the next

five or six years, if no major change occurs in the international situation.

Petroleum- exports are likely to be maintained" although looal oon-

sumption of refined produc.ts is constantly increasing, at. a rate of more than

10% per year. Large scale exploration has been resumed by private companies

now that the Colombian Government has changed those provisions of the Colombian

~.: .1

law which were a major deterrent· to foreign investment in petroleum v~ntures.

Expansion in crude output may enable Colombia both to maintain export volume

and to satisfy the increased demands of its ~nn refineries.

The demand for imports, which so far has been checked by the rather

stringent exchange control system, is n~r eA~ected to be adequately restrained

by:

a. the higher peso cost of imports, due to the change in foreign

exchange rates and customs tariffs;

b. a policy of monetary stabilization; and

c. an extensive list of prohibited imports.

In the long run, Colombia should not rely upon exports of coffee and

petroleum alone to meet her increasing import demands. Exports of gold, plati-

num and precious stones, represent a small steady income, but there is little

prospect for expansion of these lines. There are, however, good prospects for

increasing Colombian production of other products which could serve better to

increase exports or replace imports. Furthermore, it has been often and clearly

demonstrated that Colombian imports can be seriously compressed, during extensive

periods of time, ~~thout noticeable reduction in consumption levels or in general

-8-

ecopomic activity. Therefore, it should be possible for Colombia to achieve

a trade surplus when needed over the next decade.

v. BALANCE OF FA YL1ENTS PROSPECTSY

The prospects for a trade surplus are good. While, a slight deficit

is expected on invisible trade transactions, it is mllikely that the balance

of payments on current aCQount 1vill show a deficit.

On capital account, capital imports by petroleum companies already

more than compensate for the outflow of dollars required for amortization of

foreign debt. ~Vhile amortization is likely to grow in the years to come, it

could be balanced by inflows of foreign capital which should take place if

capital movements, both in and out of Colombia, were co~pletely freed, as has

recently been recommended by the Committee.

Fears have been expressed that the adoption of such measures would

provoke undue capital flight. This is not likely, however, since most of the

potential "flight capitalll has probably already been exported illegally to the

US in the last decade. If political stability is re-established, Colombians

would be more inclined to repatriate their foreign assets.

The total foreign debt outstanding (including items undisbursed

totaling US$ 86.6 million) now amounts to US$ 215.1 million, of which US$ 203.1

million is payable in US dollars. Total service on this debt is estimated at

US$ 23.1 million in 1952, and averages US$ 19.4 million during the five years

1953 through 1957. Peak service in 1952 is thus just over 5% of current account

receipts in 1950.

11 See Table A.

-9-

On the basis of the present debt, service payments will fall to

US$ 6.5 million by 1960. In fact, Colombia should not experience any difficulty

in meeting service payments considerably larger than these. Export receipts

in 1951 and thereafter are expected to be substantially higher than their 1950

level, and there is no pressing need for a proportionate increase of imports.

If, as is likely, an investment program develops increased production leading

to new exports and replacement of some imports, the long-run position of

_ Colombia would be progressively strengthened. There is, therefore, little

likelihood that Colombia would have any difficulty in the service of a

US$ 16.5 million ten-year loan for highway construction.

Goods and Services

TABLE A Y

BALANCE OF PAYMENTS

(~ry Sta.tement)

(millions - U.S. doJ~ars)

Exports •.••.• , ••••••••••....•••••.•••••.••••••••••• IInports .•...........•.••.•••....•..••..••. , .•. ., .••.

Trade Balance ••.••••••••••••••••.•••.•••••••••••••

Invisibles: . Receipts Payments

Balance

••• 0 ••••••••••••••••••••••••••

• ~ ••••• 19 •••••••••••••••••••••• ............................. Balance: Current account ..........................

303 260

fT+j-

40 70 30

f 13

Loans from abroad •••••••••••••••••••••••••••••••••• f 6 Receipts froID petroleum companies and other

investors • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• I- 19 Amortiza.tion •••••••••..•••••••••• 11 ••••••••••••••••• - 6

Balance • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • •• 7 19

Compensator,y Finance

g10netary gold ••••••••••••••••••••••••••• 0.0 •••••• ,

Short-term operations $ ••••••••••••••••••••• ~ ••• O ••• f 45

1/ According to the Banco de la Republicao

1950 (Preliminary )

392 334

T58 47 81

- 34

@

f 6

f 29 13

f 22

A-I EXT:SRNliL DEBT OF COLOMBIA

(In thousands)

Amount Outstanding In currency Expressed in

Date of payment U.S. dollars

DOLLAR DEBT

Dollar bonds Colombia 3;; - 1970 11/20/5~ $ 36831 36831 Colombia 6% - Jan. 1, 1961 11/20/.50 621 621 Colombia 6% - Oct. 1, 1961 11/20/50 575 575

38027 38027

Guaranteed bonds exchanged under debt plan of 194B Antioquia 3~ - 1978 7/10/50 9976 9976 Caldas 3;~ - 1978 7/10/50 3734 3734 Cauca Valley 3~ - 1978 7/10/50 3565 3.565 Gundinal:larca 3% - 1978 7/10/50 4072 4072 Santander 3~ - 1978 7/10/50 973 973 Tolima 3% - 1978 7/10/50 642 642 Cali 3;; - 1978 7/10/50 841 841 i.!edellin 3;; - 1978 7/10/50 3.535 3535

27338 27338

Bonds elif.ible for exchange under 1948 debt plan~ Antioquia 7;:" Ser. ii,B,C,D, 192.5 7/10/.50 2271 2271 hntioquia 7%, Ist,2nd,~ 3rd Ser.

of 1927 7/10/50 1378 1378 1 .. ' 46 7/10/50 1348 1348 Galdas 72 ia - 19

Gauca Valley 7~~s - 1946 7/10/.50 563 563 Gauca Valley 7% - 1948 7/10/50 6.51 651 Cundinar.larca 6~-% - 1959 7/10/50 1385 1385 Santander 7;~ - 1948 7/10/.50 392 392 TolinCi. 7;~ - 1947 7/10/50 337 337 Cali 7-j - 1947 7/10/.50 317 317 ~v~del1~n 7~ .~- 1951 7/10/50 632 632 l.lede11~n 6"27; - 1954 7/10/50 861 861

10135 10135

other bonds Baranqui11a 4~; - 196L, 12/31/50 1186 1186 Bogota 8~ - 1945 12/31/50 321 321 Bogota 6~% - 1947 12/31/50 22 22 hgricultural Mt~e. Bank

7%, 192&-19h6~ 12/20/50 143 143 7%, 1927-19472 12/20/50 90 90 6%j) 1927-19472/ 12/20/50 106 106 6%, 1928-1948Y 12/20/50 112 112

I.iortgage Bank of Eogota 7%, 1921-1947 12/20/50 116 116

105 105 7%, 1927-1947 12/20/50 13 13

DOLLAR DEBT (Continued) - 2 -

Bank of Colombia 7%, 1927-1947 7%, 1928-1948

Litge. Bank of Colombia 7%, 1926-1946 7%, 1927-1947 6!%, 1927-1947

Scrip and convertible certificates

Total dollar bonds

U.S. Government Loansll~ Export-Import Bank 3~-4~% - 1962

undisbursed SurDlus Property 2-3/8%, 1947-1951

Total U.S. Gover~ment Loans

IBRD Loan Caja de Credito 3~%, 1949-195~-

disbursed undisbursed

Chidral 4/~, 1950-1970-undisbursed Caldas Hidro-Elec.Co. 4%, 1950-1971-

not yet effective

Total lBRD Loans

other Dollar Debt "*i~ational Railroads debt to A tel1iers

betallurgiques, Ltd. *3% Treasury Notes -1952 (National

City Bank & others)~ Debts arising from

l.:aritime Terminal at Barranquilla Central Telephone Co.

*Loan to Paz del Rio Steel Co. by Ban~ue de Paris et des Pays-Bas (undisbursed)

7rICOP3SCll. obli~ation to l~ktiebolaget Fr. Ramstrom9/

*Lcan from Demag & Associates, Germ~ - undisbursed

Loans fran Esso Colombiana-Puerto Salr,a Pipe Line Cantimplora-Doranda Pipe Line

Bank of America-Puerto Berrio-rred-ell in Pipe Line Outstanding

Medellin hio Grande Varios Bancos -un'4,tilized

Date

12/20/50 12/20/50

12/20/50 12/20/50 12/20/50

11/30/50

2/28/51 2/28/51

12/20/50

2/28/51 2/28/51 2/28/51

2/28/51

12/22/50

11/30/50

6% 11/30/S0 11/30/50

12/31/50

12/22/50

12/31/50

12/20/50

12/20/50

Amount Outstanding In currency Expressed in of payment U.S. dollars

53 53 50 50

116 116 $9 89 64 64

258S 2586 176 176

78262 78262

27425 27425 11975 11975

102 102

39502 39502

4925 4925 75 75

3530 3530

2600 2600

11130 11130

2071 207110/ 6679 6679 1667 1667

88 88 2560 2560

25000 25000

636 636

12000 12000

300@. 150@

3000W 1500IT/

3000W 3000g/

IG5£ IGJ£

DOLLAR DEBT (Continued) - 3 -

Amount outstanding In Currency Expressed in

Date of payment ¥.S. doll~s

ICOPESCA Grupo Aleman M/pio Cali Cia Tel.Pacifico Cia Electricidad Cali ~~eneral Electric Co.-undisbursed iHnt8rna t '1 Petroleum Co .-Barranca

Bermeja Refinery 4~-10 years­undisbursed

other Jollar Debt

Total Dollar Debt

:SiiERLIl~G DEBT

ster l~~ng bonds

Bogota-Sabana Ry. 5%, 1926 Colombia 3~, 1942-1972 Colombia 6;', 1911-1941 Colombia 6%, 1913-1947

ColOMbia 5%, 1916-198) Colombia 6%, 1920-1954

12/22/50 12/30/50 \:f :. ,:' ~,t?:

12/30/50

9/30/50 *' 9/30/50 9/30/50 9/30/50

9/30/50 9/30/50

l .. gricul tur[ .. l Ltge. Bank of 6~%, 1929-1959~

Scrip of 1934

Colm'lbia 10/26/50

9/30/50

Total fterling 30nds

Other Sterling ~ebt Ferrostal A/G Alemania

Total Sterling Deb~

Total Debt

Total debt undisbursed Total debt disbursed

12/20/50

€., 1176

954 8000

2000~

661 .;

1565/

89-

6~~ 3~

2762/

67& 9

2023

65

2088

67 1176

954 8000

10257 .80376

2(;9270

182 437 249 168

1842 95

773

1893 25

5664

182

5846

~~215116

86563 128553

* In the category of "other dollar debt~ the items marked with an asterisk are included in 'rable A-2. other items in this category are not included in Table A-2 bec~use of insufficient information.

Y If exchanged, 'r'v-Quld be on the basis ofil,200 new bonds for ~l,OOO old bonds. ~ Guaranteed by the national government. 3; If exchanged for Colonbia 3 's of 1970, it vrould be on the basis of .51,100 - new bonds for ~1,000 old bonds. W If exchanged for Colombia :3's of 1970, it would be on the basis of f;>750 new

bonds f or ~;l, 000 01 d bonds. 5/ Interest noV{ being paid at one-half the contractual ratej maturity is 1972. ~/ Exchangeable for Colombia 3% ~ 1970 on par for par basis. 11 Excludes Lend-lease.

- 4-

~ At the end of 1952 there will be 05,578,896.76 still outstanding to be renegotiated at that time. lle have assumed that it 'will be paid at the end of 1952.

ZI Consists of the following obligations of Industria Colambiana de Pesca . Maritime, S.A.

Subscription by Ramstrom to shares of ICOPESCA $150000 Advance paJ~ent for deliveries 140000 Credit frOl~ RamstrOlil 6% - 1954 560000

$ 85ao09 ±!..I ~nentioned in the contract as a total obligation of $2,3[39,182.50 of which :;JhO~140.90 is interest.

11/ Converted at one pound If: 92.80. --I

!.?il It is not knov~'Il whether these are in pesos. I3/ This loan may be dravm on in either Cololllbian pesos or U.S. dollars. ~ Does not include a Lend-lease credit since it is confidential.

....... .....,

A-2 ESTI;..rAT~D INTEH. ~ST AND Ai,lORTIZATION P Aii'L':NT S ON TH"~ :.£j~TliiR.t\fAL D.mBT OF COLO,,'ffiIA

(·~pressed in thousands of U.S. dollars)

ar Bonds It EXQort-Irn~ortBank Loans ~ SurQlus ~ro~ert~2/ Page 1

Undisbursed rortion of i"TIx-Im Bank Loans 1/ i?a~ments Amount Pa~rnents Amount Pa~ments zation Interest Total Outstanding Amortization Interest Total Outstanding Amortiza.tion Interest Total

67 3,495 4,662 26,938 3,954 979 4',933 11,382 219 219 40 2,359 3,599 22,984 4,225 860 5,085 13,235 1,330 509 1,839 87 2,280 3,667 18,759 4,464 6P8 5,1.1:2 11.905 1,657 4'57 2,114 3 2,192 3,735 14,294 3,861 519 4,380 10,2u8 1,658 394 2,052 42 2,093 3,735 10,433 J,325 369 3,694 8,590 1,658 331 1.989 47 1,988 3,735 7,108 2,700 248 2, 9Lt 8 6,932 1.658 266 1,924 59 1,876 3,735 4-,408 1,868 150 2.018 5,274 1,338 203 1,541 78 1.757 3,735 2,540 772 93 1365 3,936 1,118 147 1,265 68 1.630 3,598 1,767 501 66 567 2,818 1,008 110 1,118 04 1,4'94 3,598 1,262 501 46 547 1.810 359 70 Lt29 r 1,J65 3,598 765 396 27 h2) 1,451 362 57 419 78 1,220 3,598 369 369 11 380 1,089 136 44 180 33 1,065 3,598 953 136 38 174 98 900 3,598 817 136 33 169 73 725 3,598 681 136 27 163 58 538 2,2.96 545 136 22 158 38 416 1,554 Lt09 136 16 152 -23 331 1,554 273 136 11 147 15 239 1,554 137 137 5 142 13 141 1,5 c4 65 35 500

[

des all bonds nO'il being sf'rvieed under debt plans plus all UnaSS€11ted bonds at whatever their ne1:1 par value ~'.'ould be if d that all bonds vlOuld be bought in the open market at an 8ver~.o:8 nries of 50, except for the bonds of BarranCluilla 1d be bought et 70. nts on loans outstanding as of 12/)1/50. nts on undisbursed loans as of 12/31/50, plus estimated payments on t"lO ne\'! loans. #=4L!2D for $105,000 and #h90 for

~ ~

A-2 E

Dollar Bonds 1/ Amount Pa~ments

Year Outstanding Amortization Interes

1951 80,654 1,167 3,495 1952 78,249 1,240 2,359 1953 75,691 1,387 2,280 1954 72,798 1.543 2.192 1955 69,550 1,642 2,093 1956 66,092 1,747 1,988 1957 62,408 1,859 1,876 1958 58,683 1,978 1,757 1959 54,305 1,968 1,630 1960 50,051 2,104 1,4'94 1961 45,497 2,233 1,)65 1962 40,663 2,378 1,220 1963 35,511 2,533 1, 065 1964 30,019 2,698 901) 1965 24,165 2,873 725 1966 17,927 1,758 538 1967 13.883 1,138 416 1968 11,038 1,L23 331 1969 7,981 1,315 239 1970 4,694 1,413 141 1971 1,162 465 35

1./ Amount outstanding includes all bonds n~ assented. It w~s assumed that all bond!

£/ which it was assumed would be bought a.t Includes scheduled payments on loans out

1/ Includes estimated payments on undisburs lP1.503,389.

- ~

A-2 (Cont'd) :i£STILAT:;D IrIT .. ~.i:L~ST .l~:::n 11 .. ~J.:.TIZATION PAYiFNTS ON THE EXTEiu\T.AL DE.JT OF C010~13IA

(Expressed in thouSA nds of U. S. dollars)

Page 2 Government ,Loans I . .t3.R.D. l.oan Other Dollar Debt 4L

l)a~ments Amount lJa~lment s Amount Pa~ments .zation Intere~1! TotRl Ou t s t flnding Arno rtization Interest Total Outstandine Amortization Interest Total

~54 1,198 5,152 11,130 369 369 55,381 6,072 1,213 7,285 ;5.5 1,369 6,924 11,130 1,046 421 1,467 58,310 9,037 1,785 10,822 "21 1,145 7,266 10,084 1,0?5 383 1,478 49,273 2,663 1,725 4,388 )19 913 6,432 8,989 1,247 342 1 , L)89 46,610 6,676 1,991 8,667 ~83 700 5,683 7,742 1,257 297 1,554 39.934 9,052 1,804 10,856 '58 514 4,872 6,485 1,268 252 1,520 30,882 8,916 1,363 10,279 ~06 3.53 3,5.:~9 5,217 279 ~06 48.5 21,966 7,)16 943 8,259 90 240 2,130 4,938 291 195 486 1LJ ,650 7,316 588 7,904 09 176 1,685 4,647 302 183 485 7.334 3,746 261 4,007 60 116 976 4,3liS 314 171 4R5 3,588 1.026 134 1.160 58 84 842 4,031 327 157 484 2,562 1,026 92 1,118 05 55 560 3,704 340 145 485 1,536 I t 026 51 I t 077 36 38 ]74 3, 36L~ 354 131 485 510 51O 10 520 36 33 169 3,010 368 117 485 36 27 163 2,642 384 102 486 36 22 ] 58 2,258 399 87 486 36 16 152 1,859 LJ15 70 485 6 11 147 1,444 432 54 486 7 5 142 1,012 449 36 L,·85

563 467 19 436 96 96 2 98

an asterisk on TRble A -1 for the items included in this cate~ory.

---"' --A-2 (

Total U.S. Government Amount Paxm - Year Ontstanding Amortization I . . .. . ... .... ...

1951 38,320 3,954 1952 36,219 5,555 1953 30,664 6,121 1954 24,542 5,519 1955 19,023 4,983 1956 14,040 4,J58 1957 9,682 3,206 , . 1958 6,476 1,890

.. 1959 4,585 1,509 1960 3,072 860 . , 1961 2,216 758 1962 1,458 505 .. 1963 953 136 '.

1964 817 136 1965 681 136 1966 545 136 1967 409 136 1968 273 136 1969 137 137 1970 1971

-I±/ See footnote mrl r1.::pd ':'ith an ::if',ter

'WI" -~

ESTIHATED Li~T3MST AND illviOI:TIZATIOl\) FAY/L2NTS ON T:iE 3X.~ERI\j"AL DEBT GF COl.O!,mIA

(T~xpre s sed in thousands of U. S. dollars)

DollEr Debt StGrlin~ Bonds ~L Total Debt .t'a:lllient § Am:)unt Payment s Amount _)B:iTri@ilt,s

Lzation Interest Total Outstanding Amorti7.ation Interest Total OutstRndin.o- Amortization IntpTARt Total

t193 6,275 17,468 5,664 106 176 282 191,149 11.299 6,451 17,7.50 ,878 5.934 22,812 5,525 115 168 2?3 189, Lt33 16,993 6,102 .,23,095 ,266 5,533 16,799 5,295 120 162 282 171,007 11.386 5.695 17,081 ,985 5,438 20,423 ),055 129 154 283 15"1,994 15,114 5,592 20,706 .934 4-,894 21,.828 4,797 137 ll~6 283 141,Oh6 17,071 5,040 22,111 t289 4,117 20,406 4',523 1u6 137 283 122,022 16,4-35 4,254 20,689 .660 ),)78 16,03B 4,232 1~4 129 283 103,505 12,814 ),5°7 16.321 t475 2,780 14,255 3,924 162. 120 282 88,671 11,.6)7 2.9-00 14.537 ,525 2,250 9,775 3,599 174 109 283 74,470 7,609 2.359 10,058 ,)04 1,915 6,219 3,252 182 101 283 64,308 4,486 2,016 6,502 344 1,698 6,042 2,888 193 90 2a3 57,134 4,537 1,788 6,325 249 1,4'71 ),720 2,502 207 76 28) 49,863 4,456 1.547 6,003 533 1,244 4,777 2,088 218 64 282 42,426 ),751 1,)08 5,059 202 1,050 4·,252 1,651 232 50 282 35,497 },434- 1,100 4~534 )93 8~4

-' 4,247 1,1W? 246 36 282 39,365 3,639 890 4.529

293 647 2,9hO 694 260 22 282 21,424 2,553 669 3,222 689 502 2,191 174 87 6 93 16 ,32 ~ 1,776 508 2,284 791 396 2,187 12,755 1,791 396 2,187 901 280 2,181 9,130 1,901 280 2,181 880 160 2,040 5.257 1,880 160 2,040 561 37 598 1,258 561 37 598

of ~65,OOO called ]lerrostal A/G Alemania, about which we have no other information.

-~

~ -, ' "-

- .. ~

. ~.. . , . Total Dollar Debt Amount .t'aymellt s

Year Outstanding Amortization Interest Tot~

1951 185,485 11,193 6,275 17,4( 1952 183,908 16,878 5.934 22,8'

'. 1953 165,712 11,266 5,533 16, 7~ . 1954 152,939 14,985 5,438 20,4;; , . 1955 136,249 16,934 4·,894 21,.8~ ,

1956 117,499 16,289 4,117 20,4( , '. ,

1957 99,273 12,660 3,378 16,0' 1958 84,747 11,475 2,780 14 .• 21

" , J .. 1959 70,871 7,525 2,250 9'.7, ; 1960 61,056 4,304 1,91.5 6, 2~

1961 54.,306 4,344 1,698 6,OL

1962 47,361 4,249 1,4'71 5, 7~ " 1963 40,338 3,533 1,244 4, 7~

" : 1964 33,846 3,202 1,050 4.,2 1

.. 1965 27,488 3,393 854 4,2L 1966 20,730 2,293 647 2,9l

~ 1967 16,151 1,689 502 2,1( 1968 12,755 1,791 396 2,H

" " 19(=9 9,130 1,901 280 2,H h 19/0 5,257 1,88Q 160 2,Ol

: 1971 1,258 561 37 5< .' ,

..

:il Does not include a debt of ~65, 000 called E'erl

Expendi tures ............ Revenues ... ~ ......... ~ .. Balance .. ~ ....... ~ ...... Changes in public debt . . Borrowings from banks ...

e .

TABLE B

COLOMBIAN NATIONAL 13UIGETS

1948 Actual

427

399

... 28

f42

133

(millions pesos)

194~ Actual

449

4o~ .,J

-46

-10

f16

• j

1950 Eetimated

./

497

516

f19

n.a •

n.a,

1951 Budget' Estiilla:~. ".},:.-

500 550

500 hlh ,.,-/.,.,'

11""\_

fc::.)

.~