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Banking

Colombia

Overview
Including: Incentives for Expansion of Banking Services; Data Protection Issues; Money Laundering; Interest Rates.

A bill currently being processed by Congress proposes establishing a state-regulated body that will resolves any disputes that may arise between financial institutions and their clients.

The Superintendency of Banks has issued a circular letter to all financial entities announcing changes to the ways in which credit risk may be analyzed. This update explains what sources of information may now be used to asses users' creditworthiness.

A recent decision by the Council of State offers protection for delinquent debtors. The decision states that once a person has met his or her financial obligations, information that classes him or her as a delinquent debtor must be removed from all databases so that he or she is not denied access to the financial system and to credit in general.

The new Colombian Criminal Code has attempted to identify banking crimes by giving more precise definitions of offences such as ‘economic panic’ and ‘usury’.

A new decree has opened up the market of property paid to banks to settle a debt. A special savings scheme allows prospective buyers to save a deposit for the property, while living there. The move is being welcomed as giving a boost to the property market.

A proposal has been submitted to the National Congress that suggests the replacement of the Colombian national currency, the peso, with a new unit: the nuevo peso.

More updates >

Energy & Natural Resources

Colombia

Overview
Including: Oil and gas; Minerals and mining.

The National Hydrocarbons Agency (ANH) recently issued modifications to Regulation 008 of 2008, the general contracting regime for hydrocarbons. The regulation sets specific rules, particularly for companies that do not fall within The Energy Intelligence Top 100: Ranking the World’s Oil Companies, and requires qualification of operation, financial and technical capacities.

By means of Decree 2687, dated July 22 2008, the government has issued several important rules and procedures to protect and ensure national supply of natural gas. These include rules on pricing, declaration of gas reserves, preferential customers and information that must be provided to the Ministry of Mines and Energy.

The government has recently made significant efforts to broaden the participation of oil and gas companies in the domestic marketplace. As a result, requirements to execute exploration and production contracts with the National Hydrocarbon Agency permit interested parties to hold up to three blocks or areas of interest by placing particular emphasis on net worth.

For over a decade Article 43 of Law 99/1993 has caused concern to the mining, electricity, and oil and gas sectors. In particular, projects subject to environmental licensing which use a water source require an investment of no less than 1% of the cost of the project for the preservation and control of the water basin. The ministry has recently issued a decree which regulates the 1% investment.