Colombia Peace Deal Seen Clearing Way for Bill to Increase Taxes
- Voters to approve or reject deal in plebiscite on October 2
- Fitch put Colombia’s rating on negative watch last month
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Colombia’s long-awaited peace deal is set to end five decades of fighting with the the Revolutionary Armed Forces of Colombia. It may also clear the way for what analysts say is a badly-needed tax increase.
The peace agreement, announced Wednesday night, still needs to be approved by the public via a plebiscite on Oct. 2. Investors expect that soon after the government will turn its attention to the tax bill, which would boost revenue in the face of low oil prices. Colombia’s peso rose for the first time this week on Thursday, leading emerging-market gains as it strengthened 1.5 percent to 2,897.58 per dollar at the close of trading.