Colombia Bonds: Auditor Probes Swap Over Constitutional Concerns

Bonds Colombia Auditor Probes Bond Swap Over Constitutional Concerns A Colombian government bond swap last October may have violated constitutional principles by shifting financing costs to future administrations in exchange for short-term liquidity relief, an audit by the comptroller general’s office found. The agency referred the case to Colombia’s inspector general for possible disciplinary action after rejecting the Finance Ministry’s defense during the audit, according to documents seen by Bloomberg. The operation would shift trillions of pesos in financing costs to future administrations, the watchdog said in a finding that may reshape the way sovereign liability management is scrutinized.