Colombia has fully repaid the debt it incurred with the International Monetary Fund (IMF) during the 2020 pandemic. The country returned about US$5.4 billion, corresponding to the flexible credit line requested six years ago to confront the economic shock of COVID-19, thus closing a key and controversial chapter of its recent fiscal policy.
The payment brings to an end a commitment that, beyond the financial aspect, was surrounded by political debate. The decision to resort to this instrument, taken during the government of Ivan Duque (2018–2022), has been questioned by the current president, Gustavo Petro, who has insisted that the country assumed high costs for a strategy he considers debatable.
In addition, Petro insists that Colombia was the only country in the world to request this type of economic assistance, something that Duque has categorically denied, which led to a new — and by now habitual — confrontation between the two through social media.
Colombia pays off US$5.4B in IMF debt incurred during the pandemic
This week, Finance Minister German Avila reported on the repayment of the debt at an economic forum convened by the executive branch. “The total debt with the IMF has been paid, incurred under the Duque administration, and repaid in a very short period. This means that Colombia is no longer subject to the onerous conditions that the IMF imposes on debtor countries,” the minister said, in a remark that was later echoed by President Petro on social media.
In 2020, with the global economy paralyzed by the spread of COVID-19, Colombia turned to the IMF’s Flexible Credit Line as a backstop amid uncertainty. This instrument, designed for countries with solid macroeconomic fundamentals, allows immediate access to resources without the traditional conditionalities of other programs run by the institution.
The government at the time defended the decision as a preventive measure. The line did not necessarily imply an immediate full disbursement, but rather functioned as insurance against potential tensions in international markets. However, given the magnitude of the crisis, the country ultimately used part of those resources to sustain public spending and mitigate the effects of the recession.
Over the years, the credit ceased to be seen solely as a technical tool and came to occupy a central place in political confrontation. Colombia’s current president, Gustavo Petro, has on several occasions questioned the use of this mechanism, arguing that it involved the payment of high interest and that it was not the only available alternative.
From his perspective, Colombia took on an unnecessary financial burden in a context in which other countries opted for different strategies. Petro has even claimed that the country was the only one to resort to this type of financing under similar conditions, an argument that has been challenged by economists and by sectors close to the previous government.
Ivan Duque, for his part, has defended the decision as responsible and aligned with the recommendations of international organizations. In his view, the Flexible Credit Line helped strengthen market confidence, prevent a deeper economic deterioration, and guarantee liquidity at a critical moment. He has also emphasized that this type of instrument has been used by other emerging economies in contexts of high volatility.
The controversy, in fact, is not new. Since the agreement was approved, experts have debated its convenience, its cost, and its long-term impact. While some consider it a prudent decision that helped stabilize the economy, others argue that it unnecessarily increased the country’s debt.
Was Colombia the only country to request this type of loan from the IMF?
Following the announcement of the end of the debt, a dispute arose between the current government and the one that requested the credit over its necessity and conditions. Petro boasted that his administration fulfilled the country’s obligations and repaid a loan he had always criticized, which quickly drew a response from the main figure targeted: former president Duque, who defended his decision to seek this support.
“Oh, Gustavo, four years and you still couldn’t learn about public finances. You repaid a loan taken on by the Colombian state under the best conditions with the IMF to confront a pandemic at a time of global crisis,” Duque wrote, before going on to question the state of the public finances that the Petro administration would leave for the coming years.
“On the contrary, you are leaving future generations the highest fiscal deficit of the century, a debt cost that is double what it was in 2022, and the country’s fiscal credibility in tatters,” the former president added, concluding his remarks with an ironic question about “the rate at which debt is being issued today” by the Petro government, in reference to a rate even higher than the one obtained from the IMF in 2020.
Amid the controversy on social media, Petro repeated that Colombia had been the only country in the world to use this type of IMF credit, a claim that was challenged by former Deputy Finance Minister under Duque, Andres Pardo.
“It is false that Colombia was the only country on the planet that took out a loan with the IMF during the pandemic. According to official IMF data, more than 80 countries received emergency financing from the institution, totaling more than US$110 billion,” he said.
He added: “Colombia, in particular, received US$5.3 billion in financing during the government of Ivan Duque, and had one of the most favorable loans of all: Access to the Flexible Credit Line, with immediate disbursement and no conditionality.”
Meeting obligations to creditors and closing a chapter
Beyond the political debate, the fact is that Colombia met its obligations. The full repayment of the debt reflects a fiscal management strategy aimed at reducing exposure to external commitments and improving debt sustainability indicators.
The timely fulfillment of these payments also has implications in terms of international credibility. For markets and investors, the fact that the country honored its commitments reinforces the perception of stability and fiscal discipline, a key factor in a global environment marked by uncertainty.
In addition, the end of this obligation frees up space in public finances, which could allow for greater flexibility to face new economic challenges. However, this does not mean that fiscal pressures disappear, especially in a context of economic slowdown and growing social demands.
The end of this debt marks the close of a period that began at one of the most critical moments in recent history. The pandemic forced governments to make rapid and, in many cases, exceptional decisions. In that context, the IMF’s Flexible Credit Line was one of the tools chosen by Colombia to confront the crisis.
Today, with the debt fully repaid, the country leaves that episode behind, although the debate over its appropriateness persists. The discussion between Gustavo Petro and Iván Duque reflects different visions on how to manage the economy in times of crisis and on the role of international organizations in national finances.
What is not in dispute is the final outcome: Colombia met its obligations to its creditors and closed the financial chapter of the pandemic with respect to this credit. It remains to be seen how this decision will be interpreted in the long term and what lessons it leaves for future crises. https://colombiaone.com/2026/04/23/colombia-pays-off-imf-debt-incurred-during-the-pandemic/
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