(Updates with peso close)
By Nelson Bocanegra
BOGOTA, April 26 (Reuters) - Colombia's peso currency
and stock market fell on Wednesday on uncertainty triggered by a
cabinet reshuffle that included a change in the finance
ministry.
Market participants had been rooting for Finance Minister
Jose Antonio Ocampo to retain his post after he steered the
approval of an ambitious tax reform last year through congress,
to no avail. Ricardo Bonilla was named finance minister.
President Gustavo Petro asked his ministers to resign late
on Tuesday following an upset in the lower house, after a debate
on the government's controversial health reform was abandoned
because the necessary quorum had not been reached.
Petro said on Twitter the majority coalition he had enjoyed
in Congress had been fractured by some party leaders and a
"rethink" of the Cabinet was necessary.
The peso ended down 3.2% at 4,657 pesos per dollar in
its largest daily percentage drop in over nine months. It is up
4% so far this year.
The yield on 10-year foreign-traded debt rose to
11.421% from Tuesday's close of 11.301%, while local TES
maturing in February 2033 yielded 11.596%, from a Tuesday close
of 11.425%.
The MSCI COLCAP stock index fell 1% to 1,185.60
points.
The heads of the Liberal, U and Conservative parties have
asked their legislators to vote against the health reform, but
some lawmakers - including at least eighteen from the Liberal
party - have chafed at attempts to control their votes, saying
they had not agreed to vote in a block.
Petro's government is also pushing labor and pension
reforms.
Though political infighting generates concern, it may be
better for business, said FTI Consulting's Daniela Cuellar.
"Petro's ability to push more radical reforms through
Congress seems to be at an end," she said. "This should provide
comfort for companies."
(Reporting by Nelson Bocanegra,
Writing by Julia Symmes Cobb; Editing by Emelia
Sithole-Matarise, Deepa Babington, Jonathan Oatis and Diane
Craft)
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