Balance of payment vulnerability in terms of colombian external debt

Abstract

The most important goal of this article is to show the result of a research made into the vulnerability of the Colombian balance of payments in reference to the problem of the external debt since the end of the last decade, and in the light of some indicators of vulnerability and two exercises in reference to the sustainability as well as the inter-temporal solvency. lnitially, the Colombian empiric evidence suggests that there is no external vulnerability and the balance of payments gives evidence of sustainability in both the short and long term . However, the high interest rotes on the external debt demand a higher commercial balance surplus which in turn implies a larger export effort to keep present growth sustainable.