“It will be prudent to see how the dust settles, but the market will likely price-in the risk of a downgrade to Colombia’s BBB rating,” J.P.Morgan analysts wrote in a report.
President Juan Manuel Santos and Rodrigo Londono, the top FARC commander, though, will maintain a ceasefire and keep working together despite the setback.
“I will keep seeking peace until the last minute of my term,” said Santos, who leaves office in mid-2018.
According to Colombia’s Finance Ministry, Colombia’s economy could expand 1 percentage point faster per year without the presence of the FARC scaring away investors and without the war diverting government spending from economic development.
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