Journey For Hope

To make matters worse, last Friday, Ecuador, a key commercial partner of Colombia, stated that it will not pay debt that would expire on Saturday (corresponding to the interests of its Global 2012 bonds), according to the Ecuadorian site El Mercurio, which has caused great uncertainty in that country, whose country risk exceeded the 4,000 points last Friday. The fact of moving away from the possibility of being investment grade, produces negative referrals for the Colombian economy. This means moving away from the possibility that the country access to better interest rates to finance. It also implies a smaller volume and quality of investments in the country, which it might have been still investment grade, and a reduced flow of capital. This also has implications for the generation of jobs in the economy. For the sector Colombian businessman also represents a setback such novelty, since for this, It also represents not be able to access lower rates of financing, which limits the possibilities of investment.But beyond of that Colombia has moved away from investment grade, his Government has been working in the right direction to reach finally reach it (although you need to wait a little longer). Colombia, is working hard in improving their competitiveness in attracting investment, in the planning of long-term economic growth, making the necessary investments in infrastructure, in short, Colombia is being worked on all those aspects which are key to ensure the soundness of an economy, which at some point will have to be recognized by risk rating agencies. To promote greater investment for example, the country has developed export processing zones, in addition to working to improve the business climate in the country (which is measured via an index developed by the World Bank). It is thus that Colombia already has 40 new approved free trade zones to boost production industrial, competitiveness and employment.In addition to the negative news related to the credit rating of the country over the past week, Colombia lived its mini social and financial crisis caused by a magnitude conflict linked to the fall of firms called pyramids (signatures that capture money that came to offer up to 300% interest) which involved a scam thousands of Colombian savers.Although this fact evident shortcomings in the controls of this kind of entities (that should be regulated as the financial system entities), Uribe showed its response capacity immediately recognizing the responsibility rests with the Government, at the same time acknowledged that financial superintendents and societies missed them apply more actions to stop these scams.This fact which may be isolated, evidence the response capacity of the Colombian Government and its line of action, which makes it clear that although may have flaws (as this fault observed in control of these pseudo entities financial), seeks to generate security in the country’s economy. This is a very valued by investors, which will surely bring you many benefits in the future.