The World Bank recently signed a development policy loan that aims to supplement Colombia’s national budget. The loan, worth $700 million, will specifically target three important areas: the labor market, infrastructure projects, and entrepreneurship.
“This highlights the enormous effort by the National Government to undertake decisive policy actions to improve regulation and the institutions governing infrastructure financing, develop the capital market, improve the productivity of Colombian workers with inclusive and targeted policies, promote innovation, strengthen competitiveness and good competition practices and facilitate international trade,” said Mauricio Cardenas, Colombia’s minister of finance and public credit.
To bolster the country’s workforce, the World Bank, hand-in-hand with the country’s labor ministry, will create a more accessible education system for Colombia’s indigenous population, ensuring they preserve their customs and traditions.
The country’s capital market will also benefit as the loan will also be used to finance small and medium enterprises (SMEs), in an attempt to attract more Colombians to establish their own businesses. Access to credits will also be widened for SMEs.
“It also seeks the efficient implementation of a secured movable assets registry which will permit increased access to credit among companies using their movable assets as guarantee,” the World Bank wrote.
Regulations governing the private sector will also be improved to be at par with international practices to participate more in the international market. Science, technology, and innovation are also given utmost importance as more monetary support is expected to go to these sectors.
“Through the Government policies supported by this loan we expect to have a positive impact in social and poverty reduction terms, via the creation of jobs for the neediest, their increased participation in entrepreneurial activities, and a reduction in transport and logistics costs,” said Gerardo Corrochano, World Bank Director for Mexico and Colombia.
The outlined projects will be facilitated by the Ministry of Finance and Public Credit and the National Planning Department.