A tax amnesty on Argentine wealth held overseas is expected to prompt a dramatic increase in domestic bank deposits, which would enable the country’s banks to scale up lending and stimulate the lacklustre economy.
Mauricio Macri, the country’s market-friendly president who took office in December 2015 and represents the centre-right Republican Proposal political party, announced in May an amnesty on an estimated $500bn of unregistered Argentine money held abroad. Depending on the sum involved, the capital will be liable for tax of between 0% and 15% once it is repatriated. Economists estimate that this could lead to an inflow of up to $100bn.
