FinObservatory

Sovereign haircuts / COL

Colombia

6 concluded restructurings, between 1845 and 1941. The earliest default they settle began in 1826. The worst cost creditors 96.6% of the present value of their claim, in 1845. The longest gap between a default and its settlement was 19 years.

6
Restructurings
73.1%
Median present-value haircut
96.6%
Worst present-value haircut
3 of 6
Cut face value by zero
$4.30B
Debt treated (2020 $)

Every restructuring

Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.

020406080100184518611872189619051941Year the restructuring concluded
Present-value haircutFace-value reduction
DefaultSettledYears to settlePresent-value haircutFace-value reductionDebt treated (2020 $)Source
182618451996.6%0.0%$1.01BMeyer, Reinhart and Trebesch (2022)
18531861866.8%0.0%$764MMeyer, Reinhart and Trebesch (2022)
18721872079.3%69.6%$708MMeyer, Reinhart and Trebesch (2022)
188018961686.9%50.4%$680MMeyer, Reinhart and Trebesch (2022)
1900190559.7%0.0%$317MMeyer, Reinhart and Trebesch (2022)
193119411065.3%11.6%$819MMeyer, Reinhart and Trebesch (2022)

Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology

Default spells

SpellFromToYearsRestructurings
COL_1826-184518261845201
COL_1853-18611853186191
COL_1872-18721872187211
COL_1880-189618801896171
COL_1900-19051900190561
COL_1931-194119311941111

Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology

Debt still in default

The Bank of Canada-Bank of England default database records no debt in default for Colombia in its latest year.

Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology

Methodology, the measures, and what this data cannot tell you