Will More Bank Lending Spur Colombia's GDP?

Financial Services attorney Camila Gantiva Hidalgo was featured in a Q&A with The Dialogue's Financial Services Advisor about an agreement between Colombian banks and the country's president, Gustavo Petro, to increase lending to various sectors. Under the agreement, banks will increase lending by approximately $13.6 billion and will distribute the loans over 18 months. Mr. Gantiva noted the housing, agriculture and tourism industries stand to benefit the most from the influx of credit, saying the agreement is expected to positively impact economic development overall. However, he cautioned that other factors, including job creation, regulatory reforms and support for large-scale projects, directly influence the economy and have to be addressed in a strategy for long-term growth in the credit industry.

"We hope that this initiative will help reduce issues related to access to credit in certain sectors. However, coordinated measures will be required to generate lasting positive impacts," he said.

READ: Will More Bank Lending Spur Colombia's GDP? (Article begins on page 1, Mr. Gantiva's comments begin on page 6)