Colombia's Finance Ministry is preparing a draft decree that would force private pension funds to allocate a larger share of their portfolios to productive activities in the local economy. According to the 2026 agenda published on the Financial Regulation Unit's website on Friday, the decree is expected to be presented in the second quarter of next year.

The proposed decree aims to increase the investment of pension funds in the local economy, with the goal of boosting economic growth and job creation. The exact percentage of investments that pension funds would be required to allocate to productive activities is not specified in the draft, but sources close to the matter indicate that it could be as high as 30% of their total portfolios.

The decree is expected to have a significant impact on the Colombian financial market, with pension funds holding around $120 billion in assets. The increased investment in the local economy could lead to a surge in demand for stocks, bonds, and other financial instruments, potentially driving up prices and benefiting local businesses.

The Colombian government has been actively promoting policies to boost economic growth and reduce dependence on foreign investment. The decree is part of a broader strategy to increase domestic investment and stimulate economic activity.

The proposed decree has sparked interest among investors and analysts, who are closely watching the development of the policy. "This move could have a significant impact on the Colombian financial market, and we will be closely monitoring the progress of the decree," said a spokesperson for one of the largest pension funds in the country.

The draft decree is expected to be presented to the government in the second quarter of next year, after which it will be subject to public consultation and approval. If approved, the decree is expected to take effect in the second half of 2026.