A Record No Government Wanted
Colombia’s external debt closed 2025 at $246.801 billion, the highest level since records began, according to data published Monday by the Banco de la República. The figure represents 53.8% of GDP — up from 52.7% a year earlier — and exceeds the peak reached during the pandemic. In dollar terms, the stock grew by $25.848 billion over the year, an 11.7% increase driven overwhelmingly by long-term obligations in the public sector.
The acceleration was particularly sharp in the final quarter. Between September and December alone, the debt balance jumped by roughly $35 billion, as the government tapped international bond markets and peso depreciation inflated the dollar value of existing obligations. The debt-to-GDP ratio had been relatively stable through much of 2025 but climbed 5.2 percentage points in the last three months of the year. Overall, 86.1% of the total stock consists of long-term obligations with maturities beyond one year, while 13.9% represents short-term credits — a maturity profile that provides some cushion against rollover risk but leaves Colombia heavily exposed to global interest rate movements.
Public Debt Drives the Surge
The public sector holds 61.9% of total external debt, or $152.7 billion, equivalent to 33.3% of GDP. That stock rose $20.3 billion over the year, with long-term obligations accounting for nearly all of the increase. By type of creditor, the sharpest rise came from foreign bondholders, whose claims grew by $17.8 billion, followed by commercial banks ($1.2 billion) and bilateral lenders ($614 million). Obligations to multilateral institutions, by contrast, fell by $2.1 billion.
Within the public sector, the national government carries 76% of the debt, decentralized entities 16%, and other public borrowers the remainder. By instrument, 65% of public external debt consists of bonds — including securities issued in international markets and domestic treasury bonds (TES) held by non-residents — while 21% corresponds to multilateral loans and 14% to bilateral and commercial bank credits.
Private Sector and the IMF Warning
Private-sector external debt reached $94.1 billion, or 20.5% of GDP. Non-financial companies hold 87.4% of that total, with financial institutions accounting for the rest. Private firms added $6.1 billion through new bond issuances and credit lines, while banks reduced their external liabilities by $521 million after paying off long-term commitments.
The record comes at a sensitive moment. The Banco de la República raised its benchmark interest rate by 100 basis points to 10.25% in January, citing fiscal risks and inflationary pressures. The IMF has warned that Colombia’s widening fiscal deficit and rising debt levels are pushing up financing costs, and urged the government to pursue credible consolidation measures to prevent further deterioration of the country’s risk perception in international markets.
With a presidential election on May 31 and oil prices volatile amid the Iran war, the debt trajectory is becoming a central campaign issue. The next government — whether led by the left’s Iván Cepeda or the right’s Paloma Valencia — will inherit a debt burden that leaves little room for expansionary policy. During the Petro administration, Colombia’s external debt rose from roughly $181 billion at the end of 2022 to $247 billion, an increase of more than 36% in three years, driven by a combination of fiscal expansion, currency depreciation, and heavy reliance on international bond markets to finance the country’s persistent current-account deficits.