Colombia Should Print Money to Pay Conflict Victims, Petro Says

(Bloomberg) -- Colombia’s central bank should print money to accelerate compensation payments to victims of the nation’s six-decade conflict, President Gustavo Petro said.

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“The routine issuance made by the central bank, instead of going to the banks, should go in bonds for the compensation of victims,” Petro said. “This shouldn’t be imposed by the government, because we all know that Banco de la Republica is independent, but should be the fruit of a national accord.”

The government can’t afford to pay out of general taxation the estimated 301 trillion pesos ($68 billion) it owes victims, Petro said Tuesday, at an event in Bogota.

The president’s comments on monetary policy, including his criticisms of interest rate rises, have sometimes spooked investors, even though the central bank generally disregards his wishes. The bank continued to raise borrowing costs at recent meetings, despite Petro’s complaints, and also ignored advice from the nation’s previous three presidents.

Petro is seeking so-called Total Peace through talks with the illegal armed groups that control swathes of the country.

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