UPDATE 1-Colombia cuts TES issuance for 2014, swaps maturities
BOGOTA, March 12 (Reuters) - Colombia has cut the amount of local Treasury bonds it plans to issue this year by 900 billion pesos ($440 million), as part of debt management that included a swap of domestic bonds.
The government swapped the local bonds, known as TES, worth 1.34 trillion pesos, with paper that matures in 2014 and 2015 being exchanged for maturities in 2017 and 2028, the finance ministry said late on Tuesday.
The debt management cut the total issuance of TES this year to 29.4 trillion pesos from an original target of 30.3 trillion pesos, the ministry said. The swap reduces debt servicing by 911 billion pesos for 2014 and by 432 billion pesos in 2015.
TES are the second source of government financing after taxes.
The government issues TES via auction and to state entities that are obliged to buy a specific amount.
Michel Janna, head of the finance ministry public credit department, told Reuters that it was not yet decided whether the debt reduction would come from the auctions or the sales to state entities.
The government will reveal its decision midyear when it revises its financing plan, Janna said.
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