Gustavo Petro Appoints New Finance Minister Amid Scandal

Colombian President Gustavo Petro appointed Deputy Finance Minister Diego Guevara to address the government's pressing fiscal challenges following the resignation of Finance Minister Ricardo Bonilla amid a corruption scandal. Bonilla, who denies any wrongdoing, is under investigation for alleged mismanagement of funds from the national disaster management agency related to dubious purchases of water tankers. Guevara has a limited timeframe to convince lawmakers to raise taxes before the end of the year, or else the government may face severe spending cuts in 2025. The budget deficit is projected to increase to 5.6% of GDP this year, raising concerns among investors. Petro has voiced his belief in Bonilla's innocence but expects his resignation due to the political fallout from the scandal, which he attributes to efforts to destabilize his government. Should Bonilla step down, he would be the second finance minister to leave Petro's administration since it began in August 2022.