CLB GVT Financing Operations


On May 20, CLB GVT issued draft for due diligence re Covid funds.


  • CLB GVT launched consultation on draft decree for analysis of financing operations provided for in art 4 paragraphs 4-5, arts 5 and 15 of LD 444 of 2020, per Covid-19.
  • Context
  • LD 444 of 2020 created the emergency mitigation fund i.e. FOME whose resources can be used to ward off the crisis or prevent extension of its effects in the national territory and includes within the particular uses of the fund, the direct provision of financing.
  • To private, public or mixed companies that develop activities of national interest, as well as invest in instruments of capital or debt issued by said companies.
  • To carry out processes for direct provision of financing to those companies or invest in capital instruments/debt issued by them, due diligence processes are required for the government to determine conditions under which these operations will be carried out.
  • Consultation Scope
  • Draft decree focuses on those due diligence processes precisely, among other points.
  • For analysis of potential operations provided for in cited provisions of LD 444/2020 i.e. direct provision of financing to companies that carry out activities of national interest, as well such as investing in equity or debt instruments issued by such companies.
  • Ministry of finance and public credit may contract the services of advisers experts in legal, financial and other matters, which are necessary to determine the conditions under which such operations would be carried out.
  • The contracting will be carried out under the regime of private law, proving simply the suitability and experience of the required experts.
  • Fees and related expenses of advisors required to carry out due diligence processes may be assumed by private, public or mixed companies that may be subject to said financing mechanisms or in which there is possibility of investing in equity or debt.
  • In event these companies assume cost of required services, legal relationship will be constituted exclusively between hired consultants and ministries of finance and credit.
  • Those will commit, with signature of respective contract, to look after Nation interests.
  • In any case, payment for expenses and fees made by aforementioned companies do not oblige the ministry upon completion of financing or investment operation analyzed.
  • Effectiveness
  • Comments on the draft decree can be submitted until midnight of May 21, 2020.
  • Decree will enter in force on publication date and repeal any conflicting provisions.

Regulators CLB GVT
Entity Types Corp; IA
Reference CP 5/20/2020; LD 444/2020; COVID-19
Functions BCS; Compliance; Financial; Legal; Operations; Outsourcing; Risk; Treasury
Countries Colombia
Products Corporate; Securities
Regions Am
Rule Type Proposed
Rule Date 5/20/2020
Effective Date 5/21/2020
Rule Id 78179
Linked to
Reg. Last Update 5/20/2020
Report Section International

Last substantive update on 05/22/2020