Colombia Bets Public Pension Fund Would Revive Capital Markets

Colombia’s government is betting that its proposed public pension fund would reinvigorate investment flows in the local bond and equity markets, according to a top Finance Ministry official.

The fund could be used to stimulate local markets while also facilitating access to long-term capital, José Roberto Acosta, the Finance Ministry’s Public Credit Director, said during an event at Bloomberg’s Bogotá office.

“The Finance Ministry is concerned because the equity market is nonexistent, and the corporate bond market has also been dry for a long time,” Acosta said. “We are willing to make the mistakes that are necessary, but we ...