UPDATE 2-Colombia sees more growth, plans to end stimulus

* Colombia ups growth and fiscal targets

* Expects to end fiscal stimulus next year

(Adds details from minister on growth and stimulus)

By Javier Mozzo

BOGOTA, June 15 (BestGrowthStock) – Colombia on Tuesday upped its
fiscal targets as the country recovered faster than expected
and the government planned next year to gradually dismantle a
fiscal stimulus plan put in place during the global financial
crisis.

Colombia increased its forecast growth for this year to 3
percent from a previous target of 2.5 percent and forecast
growth of 4 percent for next year with inflation at 3 percent,
Finance Minister Oscar Ivan Zuluaga said.

Zuluaga said the economic recovery indicated fiscal
stimulus measures should be removed to allow more expansion for
the private sector, the engine of Colombia’s growth.

“The gradual withdrawal of the anti-cyclical fiscal
policies is what will bring a message of calm to the markets
and macroeconomic stability to the country,” Zuluaga said in a
presentation on Colombia’s fiscal outlook.

The government narrowed its 2010 national government fiscal
deficit target to 4.4 percent of gross domestic product from a
previous target of 4.5 percent and reduced its consolidated
fiscal deficit target to 3.6 percent of GDP from 3.7 percent.

The finance ministry said it expected to issue local TES
bonds in $13.2 billion compared with a previous target of $13.5
billion and forecast income from privatizations at $2.33
billion.

For 2011, the country’s national government fiscal deficit
was forecast at 3.9 percent of GDP and its consolidated fiscal
deficit at 3 percent of gross domestic product.

The government expects to issue up to $2.62 billion in
foreign bonds in 2011 and seek credits of up to $1.5 billion
from multilateral lenders next year while issuing up to $13.5
billion in local peso-denominated TES bonds.

Stock Analysis
(Writing by Patrick Markey, Editing by Chizu Nomiyama and
Diane Craft)

UPDATE 2-Colombia sees more growth, plans to end stimulus