(Telecompaper) Telefonica announced that it has come to an agreement with the Colombian government to increase the capital of its subsidiary Colombia Telecomunicaciones (Coltel) by around EUR 1.37 billion to pay debt owed to asset management fund Parapat. The company said its capital injection into ColTel will amount to around EUR 925 million and will fully settle its obligations with Parapat, the consortium that owns the telecommunications assets and manages the pension funds of the former companies that resulted in Coltel. Telefonica and the Colombian government also announced a further EUR 472 million capital increase in proportion to their respective stakes to comply with a Colombian arbitration fine for breaching a government contract for mobile services.