The Colombian government, led by President Gustavo Petro, has reached an agreement with the country’s banking sector to allocate $55 billion USD in new loans to key sectors identified in the national development plan. This deal marks a departure from Petro’s previous plans to implement ‘forced investment,’ a controversial measure that would have required banks to dedicate a portion of their deposits to specific government projects. The agreement, negotiated over 19 sessions, aims to stimulate economic growth in sectors such as construction, agriculture, tourism, and manufacturing. The banking sector, represented by the Association of Colombian Banks (Asobancaria), committed to increasing its lending from $195 billion USD to $250 billion USD over the next 18 months. This significant boost in credit availability is expected to provide a much-needed impetus to these key sectors, driving economic recovery and development. While the government welcomes the agreement as a collaborative approach to economic planning, it remains to be seen how the allocation of these loans will be managed and whether it will effectively support targeted sectors.