Gustavo Petro
Gustavo Petro is himself a former urban guerrilla and Colombia's first-ever leftist president. Photo by: AFP/Daniel Munoz

Colombia has secured multiple loan agreements worth more than $1.2 billion, and the country's finance ministry said that resources will be used for budget items this year alongside taking care of costs that come with peace plans.

In a Monday's statement, the finance ministry said that two loan agreements worth 300 million euros ($323 million) were signed with German state development bank KfW.

"These loans will contribute to financing the projects in the budget approved by Congress and highlights the cooperative agenda that Colombia has had with Germany for many years concerning peace and development," the ministry said in the statement, according to Reuters.

The ministry also shared that a loan worth $663 million has been secured from the Inter-American Development Bank – which contributed $500 million – and KfW contributed 150 million euros.

KfW Development Bank, on the other hand, issued a statement the same day, noting that three contracts worth 150 million euros each were signed for extensive projects in Colombia.

The three contracts will help reform programs such as the peace agenda, strengthening gender equality policy and implementing the SDG (Sustainable Development Goals) agenda in the environmental sector that will be implemented over the years.

The statement mentioned that as the new government of President Gustavo Petro took over the office in 2022, "a substantive reorientation was initiated in many areas of policy." It added that "new efforts are to be made in the peace process, gender equality is to be improved, and the focus is to be placed on a more sustainable economy."

The Colombian government last month announced that the ceasefire with the FARC-EMC rebel group had been extended to facilitate peace talks and reduce violence, especially in the rural parts of the country.

The ceasefire, which was originally set to expire this week, has been extended until July 15, as per the decree signed by the president.

Colombia's government first announced peace talks in October last year with the FARC-EMC splinter group after the latter agreed to a ceasefire for three months.

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