Colombia Pays Record 15% Rates as Public Debt Hits a High

Colombia · Fiscal

Colombia’s public debt has climbed to a record high while the government pays its steepest borrowing rates since 2011, a squeeze that analysts warn is becoming a structural burden just as the country heads to the polls.

How large is Colombia’s public debt now?

Finance Ministry figures put gross central-government debt at about 1,238 trillion pesos ($338 billion) in February, equal to roughly 63 percent of projected output and a fresh record in money terms. The total first crossed 1,000 trillion pesos in late 2024 and has kept climbing on a trend running since mid-2023.

Most of the burden is domestic, with internal debt near 838 trillion pesos ($229 billion) at the end of 2025 and external obligations above 354 trillion pesos ($97 billion). Local outlet La Republica framed the scale by noting the government’s internal debt now exceeds the combined consumer debt of all Colombians, a comparison that underscores how fast state borrowing has outpaced households.

Why are borrowing costs so high?

The price of that debt has surged. In a mid-May auction the Treasury placed 6 trillion pesos ($1.6 billion) of bonds at a weighted rate near 14.5 percent, and short-term paper has touched 15 percent, levels not seen since 2011 and, by some measures, in two decades. One analyst noted the state is now treated as a riskier borrower than an average household.

The drivers are a paused fiscal rule, persistent deficits, repeated credit-rating downgrades and a heavy issuance calendar. With the government needing to return to the market almost weekly to fund salaries, pensions and basic spending, each extra point of interest narrows the room for other budget priorities.

What does it mean for Colombians and the vote?

Economists stress the bill is not abstract, since higher state borrowing costs feed through to mortgage rates, hospital budgets and delayed public works, with home-loan rates already around 13.5 percent. Debt service due in 2026 nears 130 trillion pesos ($35.5 billion), and the issue has become a campaign flashpoint, with candidates pledging fiscal discipline ahead of the May 31 first-round presidential election.

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Frequently Asked Questions

How big is Colombia’s public debt?

Gross central-government debt was about 1,238 trillion pesos ($338 billion) in February, near 63 percent of GDP. That is a record in money terms and close to the pandemic-era peak as a share of output.

How much has it grown under Petro?

Public debt has increased by roughly 388 to 400 trillion pesos since President Petro took office in August 2022, a rise of nearly 50 percent. Analysts say the pace outstrips economic growth.

What rates is the government paying?

Recent auctions cleared near 14.5 percent, and short-term debt reached up to 15 percent in May. Those are the highest levels since 2011, and on some short-term paper the highest in about two decades.

How does it affect ordinary households?

Costlier state borrowing tends to lift interest rates across the economy. Mortgage rates were around 13.5 percent in early 2026, and tighter budgets can mean fewer public investments.

How does this tie to the election?

Colombia votes in a first-round presidential election on May 31. The debt burden and high financing costs have become central campaign themes, with candidates promising tighter fiscal management.

Connected Coverage

The fiscal strain frames the choice facing voters detailed in our coverage of the campaign’s final stretch, and echoes the regional debt pressures examined in our reporting on Venezuela’s debt restructuring.

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