Incentives And Financing In Colombia

General Incentives

Colombia has one of the most stable economies in the region. Inflation rates have been kept below 30% even during the worst periods. This comparative stability, together with measures that have recently been introduced to open up the Colombian economy (such as the relaxation of exchange controls), is the principal incentive for foreign investors (see Chapter 3 for a discussion of foreign investment and exchange control policy). Various changes in the labor law have also enabled employers to exercise much better control over labor costs than was possible in the past.

The government maintains a policy of open foreign investment. The foreign investor has the same privileges as a national investor and full access to all available sources of financing.