UPDATE 2-INTERVIEW-Colombia can withstand U.S. recession shock

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By Hugh Bronstein

BOGOTA, Jan 24 (Reuters) - Colombia's strong economy, record international reserves and foreign investment inflows will protect the Andean country from an expected U.S. slowdown, Finance Minister Oscar Zuluaga said on Thursday.

Official 2007 growth figures will be announced in the weeks ahead, but signs are that gross domestic product expanded by at least 6.5 percent last year versus 6.8 percent in 2006, said the former lawmaker appointed finance minister almost a year ago.

Colombia is walking a thin line between wanting to attract investment and fearing that those inflows will damage the competitiveness of its export sector and throw millions of people out of work by jacking up the peso.

Capital controls adopted by the government in May to constrain the rampaging local currency will not be lifted until stability returns to global markets, Zuluaga said.

Asked when Colombia might withdraw rules saying that 40 percent of foreign portfolio investments must remain frozen for six months after reaching Colombia, he responded: "It's a matter of trying to see stability in international markets."

"We have to wait," he said in an interview.

Exporters are clamoring for authorities to tamp down the peso COP=RR, which has strengthened more than 10 percent against the dollar over the last 12 months.