Colombia’s capital markets are a few years into recovery from an economic crisis that lasted from 1998 to 2002. The growth in pension funds and financial stability, as well as a relatively benign political climate, look set to see an expansion in issuance and trading over the next few years, although major impediments remain, including the need for changes in Colombian law and the need for increased disintermediation.
According to the International Monetary Fund, outstanding corporate bonds in Colombia amounted to only 0.9% of gross domestic product last year, although this marked an increase on 2004 (0.6%). Highlighting the fact that the capital markets are only gradually recuperating, the figure for 1993 was also 0.6%.
