BOGOTA (Reuters) -Colombia’s Finance Minister, Diego Guevara, is set to leave his role amid disagreements with President Gustavo Petro, local media outlets and a source said on Tuesday, though the finance ministry said it had no information to that effect.
The finance ministry said in a statement that “at this time it does not have official information about the reported situation,” but that it would communicate official news.
Guevara has been in his role just over three months, after previously serving as vice finance minister.
A source from the presidential palace said Petro – who recently replaced 12 of his 19 ministers – and Guevara disagreed over budget cuts and Guevara resigned on Monday night.
A source from Petro’s office said, however, they did not have confirmation of the change and Guevara was still acting in his role.
Local radio station Caracol reported Guevara would be replaced by Grupo Bicentenario head German Avila Plazas.
Guevara’s exit would underline uncertainty about the future of Colombia’s deeply troubled public finances, analysts said.
“The constant changes in the cabinet and the profile of the incoming minister will increase political and economic instability,” Banco de Bogota said in a note, adding Avila may not be experienced enough to manage the challenging fiscal situation.
“The news also puts in doubt the expected cut to the interest rate by the central bank board at the end of March,” the bank added.
The Colombian peso closed down 1.08% on Tuesday, falling to 4,118 per dollar.
The government is considering a new delay in 2025 budget spending, Guevara said at the start of this month, amid budget difficulties that have already forced spending reductions.
(Reporting by Carlos Vargas and Luis Jaime Acosta, Writing by Julia Symmes Cobb and Gabriel Araujo, Editing by Andrew Heavens, Tomasz Janowski and Nia Williams)
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