BOGOTA, March 18 (Reuters) - Colombia's Finance Minister, Diego Guevara, is expected to step down due to disagreements with President Gustavo Petro, according to local media outlets and a source on Tuesday. However, the finance ministry stated it had no official information regarding this development.
According to the finance ministry, they currently lack official details about the situation but assured they would provide updates when available.
Guevara, who had been serving as vice finance minister, assumed his current position briefly.
An insider from the presidential palace revealed that Petro, having replaced 12 of his 19 ministers, and Guevara had conflicting views on budget cuts, leading Guevara to tender his resignation on Monday evening.
Nonetheless, a source from Petro's office mentioned they had not confirmed the change and reiterated that Guevara was still in his post.
Local radio station Caracol reported that German Avila Plazas, the head of Grupo Bicentenario, is expected to succeed Guevara.
Guevara's departure is likely to fuel uncertainty regarding Colombia's challenged public finances, as noted by analysts.
Banco de Bogota remarked, "The ongoing cabinet reshuffles and the incoming minister's background are poised to heighten political and economic uncertainties" while expressing doubts about Avila's capacity to navigate the complex fiscal landscape.
Moreover, the bank added concerns about the central bank board's anticipated interest rate reduction at the close of March.
The Colombian peso weakened by 1.08% on Tuesday, reaching 4,118 per dollar.
Guevara addressed the prospect of further delays in budget expenditure for 2025 earlier this month, citing existing budgetary pressures necessitating spending cuts.