Colombia | The financial system as a public policy instrument in the pandemic

The economic situation that the world is facing is different from what we have experienced in the last 70 years. In this crisis, the Colombian financial system entered with strong capital and liquidity positions, which has allowed it to absorb the shock and serve as an instrument for the implementation of public policies.

Key points

• Key points:
• First line of defense: proper functioning of the payment system thanks to the large delivery of liquidity in pesos and dollars to agents by the central bank.
• Second line of defense: relieve the income losses of families and businesses through government transfers.
• Third line of defense: make visible the loss of income of companies and families with reductions or postponements of the deterioration of the portfolio.
• Fourth line of defense: maintain the inflow of credit to businesses and families through public guarantees for the provision of credit.
• Finally, the stability and health of the financial system will be central to leveraging the country's recovery efforts.

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