On June 24, the Colombian Banco de la República (BanRep, in Spanish) launched a public consultation on a regulatory exchange bill which would modify the haircuts applicable to the so-called Solidarity Bonds (TDS, for their acronym in Spanish). Those interested have time to send in their comments until June 27, 2020, by clicking here.
The bill seeks to modify the haircut applicable to the TDS in order to reflect market risk and bond liquidity conditions. To do this, it eliminates the TDS from the group of class B public debt bonds, whose term is equal to or less than one year.
It also eliminates the maximum and minimum levels of the haircuts for the TDS, initially set at 1.5% and 8% and establishes that this will now be fixed at 10%, which applies to the TDS, as well as to the Security and Peace Bonds.