The Colombian electorate’s rejection in October of a peace agreement with the Revolutionary Armed Forces of Colombia (FARC) sent shockwaves through the country’s business community.
The referendum result did not have an immediate impact on the banking system, which is still contending with foreign exchange fluctuations and challenges arising from the country’s exposure to low oil and gas prices. However, it has made it harder for major tax reforms to be passed in Congress that, if successful, would kick-start the Colombian economy, bring down the country’s fiscal deficit and reinvigorate its infrastructure programme – lifting banks’ prospects in the process.
