Are Past-Due Loans Putting Colombian Banks on Shaky Ground?

Feature Q&A - Guest Comment, Marcela Blanco, Associate Attorney at Diaz, Reus & Targ, LLP.
Inter-American Dialogue's - Latin America Advisors - Financial Services

Colombia's government will force some of the country's banks to boost their provisions for bad debt because of concerns about an increasing amount of past due loans, Finance Minister Juan Carlos Echeverry said May 18, MarketWatch reported. The number of past-due loans has grown 26 percent so far this year, said Echeverry. What is causing the increase? Is Colombia's financial services industry on firm ground? Is the government imposing adequate regulations and safeguards on the industry, or is it unnecessarily holding banks back?

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