Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has entered into a formal payment agreement with the Government of Colombia to settle outstanding balances from the Fuel Price Stabilization Fund, known in Spanish as the Fondo de Estabilización de Precios de los Combustibles (FEPC). The agreement, reached through the Ministerio de Hacienda y Crédito Público and the Ministerio de Minas y Energía, addresses $1.6 trillion COP owed for the first quarter of 2025.
Under the terms of Resolutions 00368 and 00369 issued by the Dirección de Hidrocarburos, the total amount is divided between Ecopetrol S.A., which is owed $1.2 trillion COP, and Refinería de Cartagena S.A.S. (Reficar), which is owed $0.4 trillion COP. The repayment schedule began with a cash transfer of $2.89 billion COP on April 1, 2026. The remaining balance of approximately $1.55 trillion COP is scheduled to be paid on December 15, 2026, through the issuance of Treasury Securities, or Títulos de Tesorería (TES). The Colombian state has acknowledged the financial costs associated with the time elapsed until the final December payment.
“The Ecopetrol Group continues to work in close coordination with the Ministries of Finance and Public Credit and of Mines and Energy — the authorities responsible for fuel pricing policy — in the implementation of payment mechanisms and the reduction of FEPC balances.” — Ecopetrol S.A.
Concurrent with the subsidy settlement, Ecopetrol received authorization from the Ministerio de Hacienda y Crédito Público via Resolution 0666 to execute an external public debt management transaction totaling $1.25 billion USD. The five-year loan was secured through a consortium of international lenders including BBVA (BME: BBVA; NYSE: BBVA), Bank of America (NYSE: BAC), JP Morgan Chase (NYSE: JPM), and Bank of China (HKG: 3988). The credit facility carries a floating interest rate indexed to the Secured Overnight Financing Rate (SOFR) and will be repaid in four equal installments.
The proceeds from the $1.25 billion USD loan are designated for the repayment of existing obligations. Specifically, $1.2 billion USD will be used to settle a 2024 loan previously authorized for the acquisition of the state’s interest in Interconexión Eléctrica S.A. E.S.P. (ISA), while the remaining $50 million USD will be applied to an outstanding balance from a 2025 credit agreement. The loan agreement is governed by the laws of the State of New York and includes standard covenants regarding the borrower’s payment capacity and financial integrity.
These financial maneuvers are intended to optimize the maturity profile of the Ecopetrol Group, which remains responsible for over 60% of hydrocarbon production in Colombia. The company continues to operate integrated systems in transportation, refining, and petrochemicals, with additional international operations in the US Permian basin, the Gulf of Mexico, Brazil, and Mexico.
Four Seasons Hotel and Residences Cartagena officially opened on April 2, 2026, marking the third property for the hospitality brand in Colombia. The project is a joint venture with San Francisco Investments, a subsidiary of the Valorem holding company. Located in the Getsemaní neighborhood, the hotel is situated near the UNESCO World Heritage Site Walled City and the Cartagena Convention Center.
The development involved the multi-year restoration of several historic buildings, including the 1920s-era former Club Cartagena. The architectural and interior design was led by the late François Catroux, with additional technical expertise provided by WATG and Wimberly Interiors. The food and beverage concepts were developed by SBM Interior Design and AvroKO. Landscape architecture for the rooftop and grounds was managed by Enea Garden Design, led by Carolina Jaimes.
“Welcoming a third Four Seasons to Colombia, joining our Bogotá and Casa Medina Bogotá properties, marks an important milestone in the continued expansion of our global portfolio,” said Rainer Stampfer, Four Seasons President of Global Operations, Hotels and Resorts.
The hotel features 131 guest rooms, 27 of which are colonial-style suites located within the heritage wing. These units include preserved architectural elements and custom furnishings designed by Poli Mallarino. The property also contains Private Residences designed by Rodriguez Valencia Arquitectos. The primary presidential suite, known as the Catroux Suite, features a private elevator and a terrace with a Moorish-inspired fountain by María Cecilia Franco Berón.
There are eight dining and drinking venues on the property. The Grand Grill and Bar Lelarge were conceptualized by Major Food Group, focusing on steakhouse traditions and seasonal cocktails. Additional venues include Café Rialto, Pizzeria Della Chiesa, El Aljibe, El Patio del Limonar, and the rooftop sunset lounge, El Palmar. Lighting for these venues was designed by Lang Lighting Design.
Wellness facilities include the Umari Spa, which offers six treatment rooms and uses botanical ingredients derived from the umari plant. For business events and social functions, the hotel provides several spaces, including the Ballroom de la Veracruz, which can host 300 guests and features a centuries-old fresco. The Ballroom Centenario provides views of the Walled City for smaller gatherings of up to 100 people.
Four Seasons Hotels and Resorts is a global hospitality company partially owned by Kingdom Holding Company (TADAWUL: 4280). The company currently operates 136 hotels and 61 residential properties across 47 countries, with more than 60 projects currently in its development pipeline. In Cartagena, the hotel operations are led by General Manager Annie Monnier.
Now Open: Four Seasons Hotel and Residences Cartagena (PRNewsfoto/Four Seasons Hotels and Resorts)
The Norwegian renewable energy company Scatec ASA (OSE: SCATC) has reached financial close and initiated construction on the Barzalosa solar power plant in Colombia. The project, located in the municipio of Nariño within the department of Cundinamarca, has a planned capacity of 130 MWp. Total capital expenditure for the facility is estimated at $121 million USD.
The financing structure for the project is based on a 70% leverage model, utilizing a combination of equity and non-recourse debt. Scatec holds a 65% equity stake in the venture, while Norfund, the Norwegian investment fund for developing countries, provides the remaining 35%. The senior debt was provided by Bancolombia S.A. (NYSE: CIB; BVC: BCOLOMBIA) and the Financiera de Desarrollo Nacional (FDN).
The Financiera de Desarrollo Nacional committed a total of 200,358 million COP to the project. This includes a senior debt facility of up to 164,458 million COP with a term of 18 years, representing approximately 50% of the total project debt. Additionally, the FDN provided a bank guarantee of up to 35,900 million COP to substitute reserve accounts for debt service and operation and maintenance costs. The FDN also acted as a co-structurer for the financial framework of the operation.
“The financing of the Barzalosa project reflects the capacity of the FDN to structure long-term financial solutions that make strategic energy transition projects in Colombia viable,” said Enrique Cadena, Vice President of Structured Finance at the FDN.
The law firm Holland & Knight served as legal counsel to the lenders, Bancolombia and FDN, in the COP 330 billion financing transaction. The legal team was led by partner María Juliana Saa, with support from partner Inés Elvira Vesga and associates Juan Sebastián Parra and Juan Felipe Alonso. Other legal and financial advisors involved in the transaction included Cuatrecasas, which advised the borrower; Brigard Urrutia, which advised FDN regarding the credit facility; and Astris Finance, which provided financial structuring advice.
Revenue for the plant will be supported by a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía (BVMF: BPAC11). The agreement covers 85% of the estimated energy production and is denominated in Colombian pesos, with adjustments based on the Producer Price Index. The remaining 15% of production will be sold on the Colombian spot market. The project is also eligible for the Cargo por Confiabilidad (reliability charge) and may access resources from the Inter-American Development Bank and the Climate Investment Funds.
Construction includes the installation of the solar array and the development of a six-kilometer transmission line to connect the plant to the national grid. Scatec is acting as the lead developer and the designated Engineering, Procurement, and Construction (EPC) provider, covering approximately 70% of the capital expenditure. The company will also manage operations, maintenance, and asset management. The Barzalosa plant is expected to reach its commercial operation date in the first half of 2027.
The resignation of Wilmar Mejía as chief of Colombia’s National Intelligence Agency has highlighted instability within the country’s main intelligence agency under the government of President Gustavo Petro, which has seen four leadership changes over the past three years.
Mejía confirmed his departure on April 1 in an interview with Canal 1. “When the Inspector General’s Office lifted my suspension, I went to sign my reinstatement document and within 15 minutes I submitted my resignation. I am no longer the director of intelligence,” he said.
The official had been suspended since December 23, 2025, by the Inspector General’s Office as part of a disciplinary investigation “for alleged links to and the provision of information to members of dissident factions of the former Revolutionary Armed Forces of Colombia (FARC).” The Inspector Office said at the time that the measure aimed to prevent possible interference with the process.
The case is related to the seizure of digital files belonging to Alexander Díaz Mendoza, known as “Calarcá Córdoba,” a leader of one of the dissident structures grouped under the Estado Mayor de Bloques y Frente (EMBF). Authorities say the documents point to possible contacts with the former intelligence chief.
Mejía has denied any involvement and has argued that the accusations are part of alleged “setups aimed at silencing reports of internal corruption.”
According to the Inspector Office, the investigation “includes possible acts such as the disclosure of military force communication frequency codes and support in the creation of security companies that could facilitate the legalization of weapons in the event of a breakdown in peace talks with the government.”
So far, neither the Inspector General’s Office nor the Attorney General’s Office has concluded its investigations, and no determination of responsibility has been made.
The case has raised concerns about state security and the institutional stability of the agency, considered a key body for the country’s strategic intelligence.
Local media outlets such as El Colombiano have reported that the situation has affected trust among international intelligence partners, suggesting that agencies such as the CIA (United States), MI6 (United Kingdom), and Mossad (Israel) have restricted the sharing of strategic information with Colombia.
Since Petro took office, the agency has had four directors, all of them close to the president through their past involvement in the M-19 guerrilla group, which signed a peace agreement in 1990.
The instability dates back to the beginning of Petro’s administration. Since August 2022, when Manuel Alberto Casanova Guzmán was appointed, the agency has undergone repeated leadership changes.
Casanova, who faced criticism over his lack of intelligence experience and background as a philosopher, was removed following allegations of involvement in a false extortion case linked to then-Foreign Minister Álvaro Leyva, as reported by Infobae.
He was succeeded by Carlos Ramón González, who later left the post amid investigations into his alleged role in the corruption scandal involving Unidad Nacional de Gestión de Riesgo y Desastres (UNGRD). He is currently in Nicaragua under political asylum, while Colombia has requested his extradition and Interpol has issued a red notice.
Finally, just before Mejía, the agency was led by Jorge Lemus, who served for nearly a year before resigning. He was subsequently appointed by Petro as director of the Unidad de Información y Análisis Financiero (UIAF), amid growing allegations of possible infiltration within the country’s security institutions.
Colombia’s Finance Minister Germán Ávila abandoned a meeting of the board of the central bank (Banco de la República), on April 1 in protest over two decisions by the institution: the release of an internal document without prior consultation, and a 100-basis-point increase in the benchmark interest rate, which was raised to 11.25%.
According to the finance minister, the disclosure of the document, which involved both institutions and was linked to a draft government decree, constituted an “abuse.”
He also described the rate hike, the second so far this year, as “irresponsible and inconvenient,” arguing that it contradicts the government’s economic growth strategy.
The central bank said the decision was approved by a majority of its board: “four members voted in favor of the increase, two supported a 50-basis-point cut, and one proposed keeping the rate unchanged.”
The bank justified the move by noting that inflation stood at 5.4% in January and 5.3% in February, above the 5.1% recorded at the end of 2025. It also warned of external risks, including the impact of the conflict in Iran on the global economy, which could increase the cost of key imports such as gas and fertilizers and add to inflationary pressures later this year.
It remains unclear whether Ávila’s withdrawal from the board will be temporary or permanent, but the episode marks a new point of institutional tension that could influence the direction of monetary policy in Colombia in the coming months.
Ávila criticized the decision, saying the central bank is overlooking the country’s economic progress. “The decision taken by the central bank is repetitive and continues to ignore the national government’s efforts to ensure fiscal stability and sustained economic growth,” he said.
He also argued that the increase is disproportionate compared with global trends. “There is not a single economy in the world proposing a 200-basis-point increase in the benchmark rate in the current global context,” he said, referring to the fact that the bank had already raised rates by 100 basis points in February, meaning a total increase of 200 basis points in just four months.
The government maintains that macroeconomic conditions remain stable, pointing to controlled inflation, a relatively stable Colombian peso (COP) against the dollar, declining unemployment and solid productive growth, and argues that tighter monetary policy is unnecessary.
The Finance Ministry said the minister’s decision to leave the meeting does not seek to challenge the independence of the central bank, but rather to highlight the need for its decisions to align with the country’s economic and social reality.
However, the move has raised legal and institutional concerns. Central bank chairman of the board, Leonardo Villar noted that the finance minister has a constitutional obligation to attend board meetings, as he “not only represents the government but also lead the meetings” said in a public interview broadcasted by media outlet like La República.
He warned that an indefinite absence could amount to a breach of legal duties and urged President Gustavo Petro to appoint an “ad hoc” delegate if the minister decides not to attend future meetings.
Experts say the minister’s absence could affect the board’s ability to make decisions. According to Andrés Pardo, former deputy finance minister and head of Latin America macro strategy at XP Investments, in an interview with Valora Analitik, “current regulations require at least five members, including the finance minister or a delegate, for the board to deliberate and decide”.
This could mean that, without his presence, the central bank may be legally unable to adopt monetary policy decisions.
The rate increase could have significant effects on the real economy. According to the Finance Ministry, a move of this magnitude could slow economic recovery, increase borrowing costs for households and businesses, and raise debt servicing costs.
Small and medium-sized companies, construction, retail and tourism are expected to be among the most affected sectors, along with households holding variable-rate loans.
Lower-income groups could face the greatest impact, as reduced purchasing power and tighter access to credit may deepen economic inequality.
In February 2026, Colombia’s unemployment rate stood at 9.2%, a decrease of 1.1 percentage points compared with the same month in 2025 and the lowest figure for a February since 2001, according to the government through the National Administrative Department of Statistics (DANE).
According to the report, “at the national level, the employed population increased by 624,000 people compared with the previous year.” The sectors that contributed most to job creation were professional, scientific and technical activities, with 250,000 new positions, and the public sector (administration, education and health), with 244,000. In contrast, agriculture lost 363,000 jobs and the transportation sector 86,000 compared with February 2025.
President Gustavo Petro highlighted the result on his X account, stating that “we return to a single-digit unemployment rate, 9.2%, the lowest since 2018. More reasons not to accept the mistake of the right parties in claiming that raising the minimum wage to a living wage would bring an employment catastrophe. That was not true: we have the lowest unemployment of this century for the month of February.” The president also defended the minimum wage increase, which reached 23.7%, the highest recorded in the country.
Volvemos a un dígito de tasa de desocupación, 9,2%, la más baja desde el 2018.
Más razones para no aceptar la equivocación de la derecha al afirmar que el subir el salario mínimo al nivel del salario vital traería una catástrofe del empleo.
No fue cierto, tenemos el menor… https://t.co/vXz7Muv3f0 pic.twitter.com/Jx7RBeIWLb
— Gustavo Petro (@petrogustavo) March 30, 2026
When analyzing the December–February rolling quarter, the unemployment rate stands at its lowest level in the past ten years, according to DANE reports. The figure rose from an average of 10.7% in 2017–2018 to a peak of 15.7% in 2020–2021, a period marked by the impact of the COVID-19 pandemic, before declining steadily to 9.2% in February 2026.
For the same period in 2025, the rate stood at 10.4%, representing a reduction of more than one percentage point.
These figures are consistent with estimates by the International Labour Organization (ILO) in Colombia, which had projected a gradual decline in unemployment from around 16% in 2020 to an estimated 8.3% for the previous year.
Chart showing unemployment in Colombia from February 2016 to February 2021, including the presidents in office during that period. Image shared by Pacto Histórico Representative David Racero.
Despite the overall improvement, the DANE report also highlights challenges in terms of labor inclusion. In February 2026, the unemployment rate for men was 7.4%, while for women it reached 11.7%, representing a gender gap of 4.3 percentage points.
However, the government noted that this gap has been narrowing, as it stood at 5.2 percentage points in the previous month.
The data come from “The Great Integrated Household Survey” (La Gran Ecuesta Integrada de Hogares – GEIH), DANE’s statistical instrument that provides information on the labor market, income, monetary poverty and the sociodemographic characteristics of Colombia’s population.
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