Colombia is exploring an IMF financing package of between $8 billion and $20 billion as soaring debt and weakening tax revenue deepen its fiscal crisis. Most economists and current and former officials consulted by Reuters favored the Precautionary and Liquidity Line, an IMF facility for countries with sound institutions but economic vulnerabilities. Colombia projects a fiscal deficit of 7.2% of GDP this year and 9.4% next year. It holds Special Drawing Rights worth roughly $2.78 billion, providing access to about $16.6 billion over the agreement's lifetime. The country meets many requirements for a PLL, including a sound financial system, strong monetary framework and central bank independence, but must show progress on debt sustainability after repeated budget overruns weakened confidence. The IMF said in its 2025 review that Colombia needed spending cuts equivalent to at least 3.2% of GDP over three years. An IMF agreement could reduce risk premiums and support borrowing from other multilateral lenders, but officials warned that missed targets could halt disbursements and damage credibility. A proposed Rescue Law would seek spending cuts of 2.2% of GDP, or about $14 billion, although its passage faces a divided Congress. Colombia previously used $5.4 billion from the IMF's Flexible Credit Line during the COVID-19 pandemic and fully repaid that credit last year.