Colombian President-elect Gustavo Petro speaks throughout the presentation of the ultimate report of the Truth of the matter Fee at the Jorge Eliecer Gaitan theater in Bogota, Colombia June 28, 2022. REUTERS/Luisa Gonzalez

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BOGOTA, June 30 (Reuters) – Colombia’s leftist President-elect Gustavo Petro on Thursday named Jose Antonio Ocampo as his finance minister, a current market-friendly decision who will have the challenge of keeping the solid overall performance of Latin America’s fourth-biggest financial state and passing formidable fiscal reforms in Congress.

Ocampo, 69, who has a Phd in economics from Yale University, is a person of Colombia’s most celebrated economists who beforehand served as agriculture minister, minister of finance and director of the national preparing division. He has also held positions in the United Nations.

He has not too long ago worked as a professor at Columbia University in the United States.

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“This will enjoy effectively in the industry, he’s a specialized man, an economist that everyone recognizes and has constantly been progressive, that would seem good to me,” explained Sergio Olarte, Scotiabank’s main economist for Colombia.

During the election marketing campaign Petro pledged an ambitious tax reform value some 50 trillion pesos ($12.1 billion) to finance social jobs and put community funds in buy.

He also proposed a pension reform to increase protection to larger quantities of aged lousy men and women, which has brought about uncertainty amid business and investing communities.

“Jose Antonio Ocampo will be our finance minister (to) develop a effective financial state and an financial system for life,” Petro explained in a concept on Twitter along with a image of the two adult men standing side by facet.

Colombia’s forex fell .75% to 4,148 pesos to the greenback in early investing, in line with world-wide trends because of to escalating risk aversion amid fears of a recession in the United States.

In distinction, the MSCI COLCAP index (.COLCAP) rose 1.68% to 1,369.45 factors.

The election of Petro, a previous M-19 guerrilla, marks a radical improve for a state even now scarred by many years of conflict. Practically 50 % of Colombia’s about 50 million people today live in poverty and quite a few voters are disappointed with the appropriate-leaning political institution.

The President-elect has promised to deal with deep inequality with pension redistributions, cost-free college training and other social packages.

Past 7 days Petro named extended-time politician and peace envoy Alvaro Leyva as his minister of international affairs. study extra

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Reporting by Nelson Bocanegra, Oliver Griffin and Luis Jaime Acosta enhancing by Michael Perry and Grant McCool

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