The Colombian government plans to invest 700 billion pesos in a new holding company that will operate state-run financial institutions, El Tiempo reported, citing a government source.
Government-owned companies that could be grouped under the new umbrella company include Banco Agrario de Colombia SA, Arco Grupo Bancóldex SA, La Previsora SA Compañía de Seguros, Positiva Compañía de Seguros S.A., Fiduciaria Colombiana de Comercio Exterior SA and Fiduagraria SA.
Development banks Banco de Comercio Exterior de Colombia SA, Financiera de Desarrollo Nacional SA, Fondo para el Financiamiento del Sector Agropecuario and Fondo Nacional del Ahorro Carlos Lleras Restrepo could also be included in group, the source said.
The government looks to finalize the conditions and companies that will be incorporated into the new entity by the end of the year.
According to Banco Agrario President Francisco Mejía, operating state-owned financial entities under one holding company will generate operational and commercial synergies. Banco Agrario will provide the initial investment for the new entity, El Tiempo's source said.
The government has investments of 15 billion pesos in more than 16 financial companies, 13 of which it has control of, according to the state's annual report on companies for 2018.
As of Aug. 20, US$1 was equivalent to 3,417.00 Colombian pesos.
