WASHINGTON, February 20, 2025 - The World Bank's Board of Executive Directors today approved financing for Colombia to support measures that promote more equitable and green fiscal policies, the productive and social inclusion of vulnerable groups, and actions to mitigate the effects of climate change.
Colombia faces an urgent priority to make income distribution more equitable and provide vulnerable populations with better access to resources. The country continues to face significant challenges related to inequality and social exclusion, especially affecting women, indigenous communities, Afro-Colombians, and migrants. Additionally, Colombia has committed to ambitious climate goals for 2050.
To address these challenges, the World Bank has approved a US$700 million reform program, structured around three key pillars:
- More equitable fiscal policies and environmental protection: The first pillar focuses on saving resources through better targeting of social programs and reducing fossil fuels subsidies to promote a greener economy.
- Support for vulnerable groups: The second pillar aims to improve access to resources, credit, and services for vulnerable groups and promote financial inclusion.
- Climate action: The third pillar encourages actions for environmental protection and the preservation of strategic ecosystems, the production of clean energy, and the attraction of private investment for green projects.
"This financing reaffirms our support for Colombia in its fight against inequality and towards environmentally sustainable development that ensures equal opportunities for all. It also seeks to foster a productive sector that supports policies oriented towards a greener and more resilient economic transformation," said Mark Thomas, World Bank Director for Colombia, Mexico, and Venezuela.
The loan is the second in a series of two operations supporting a key reform program aimed at promoting more inclusive, sustainable, and climate-resilient development, aligned with Colombia's National Development Plan for 2022-2026. The Ministry of Finance and Public Credit and the National Planning Department will be responsible for the technical coordination and implementation of this loan.
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