Felipe Bayon: Thanks Barbara. This is Felipe. Good to have you here. I’m going to ask Jaime to give us more details on both refining and status of FEPC as we see that the year end and next year. Jaime?
Jaime Caballero: Hi, Barbara. Yes, so effectively what we were sharing in the call in Spanish is that I think there’s three key messages. The first one is that the ISA acquisition loan has been refinanced to a very large degree. Out of the $3.7 billion of the ISA acquisition basically $3.2 billion have already been refinanced at a cost of debt that is very comparable to the initial acquisition credit. And we have a remaining balances for the fourth quarter of next year or September, October of next year of about $3.5 billion or so of credits that we need to refinance and we’re actively working on those. Our bias is towards bank loans on this. We are looking at all sources, both local and international. And to the extent that there is a remaining balance that we don’t think it’s cost competitive to deal through loans, we will be looking at other options.
But I think those are things that are going to sort themselves over time. At this stage we have a very high degree of confidence that we can refinance this in the short-term through the mechanisms available. With regards to your second question around FEPC, the stabilization fund balance, so as we mentioned in our report, our balance at 3Q closing was COP20.4 trillion that will continue to accrue over the next few months. We believe that the year-end balance is going to be somewhere between COP29 trillion and COP32 trillion. I cannot give you a certain number because it depends on how international prices evolve. It also depends on around how the exchange rate evolves. With regards to 2023, we have been working on some internal projections and we are sharing those with the Ministry of Mines and with the Ministry of Finance to inform their decision making around adjustments at a local level.
What we’ve seen so far is that the Ministry of Finance has a clear interest in accelerating those adjustments over the coming year with a view to reduce the differential that we have between the international price and the local price. And I think it’s too early to give you a view around projections for next year since they’re going to be heavily dependent on the pace in which the ministry makes those adjustments and how international prices and exchange rate evolves. Thank you.
Felipe Bayon: Thanks, Jaime. Thanks, Barbara.
Operator: Thank you. Our next question comes from Luiz Carvalho from UBS. Please go ahead.
Luiz Carvalho: Hi. Thanks for taking my question. I have basically two questions here. The first one is trying to come back on the connection between the FEPC and the tax reform. I think we discussed this in a call couple of weeks ago, but just trying to understand I really think there has some impact in mining and oil. There were some impacts including royalties with A&H. And also if you could comment on the free zones particularly on Reficar and how the tax reform is correlated to the typical tax situation, right? The second question is about some contract renewals or reactivation. There are some talks about potentially reactivating some contracts and some exploratory areas. So just trying to understand how this can bring some impact either the CapEx or production to the company looking forward? Thank you.
