Argentina plans two more bond issues in 2017 -finance minister
BUENOS AIRES, Sept 20 (Reuters)
He said they would not be in dollars, but the currencies were still undefined.
The country has already sold nearly $10 billion in dollar-denominated bonds so far this year, including a surprise hundred-year bond in June. It also raised 400 million Swiss francs through a March bond sale.
It was not clear if the new bonds would be issued before or after the October mid-term congressional elections, Caputo said.
In June, he said Argentina had $2.6 billion in bonds left to be issued this year and that they could be denominated in euros, yen or Swiss francs.
On Wednesday Caputo said that the government would make a big push following the Oct. 22 legislative vote to pass a capital markets reform bill that has been stalled in the opposition-controlled Congress since it was proposed last year.
The bill would amend a provision allowing Argentina’s market regulator to remove listed companies’ board members and ease restrictions on foreign investment in domestic markets.
It is seen as crucial to business-friendly President Mauricio Macri’s efforts to strengthen the local financial system.
“We’re going to insist because we think it’s a key law to have sustained, long-term development,” Caputo said.
He said the government was also evaluating implementing a capital gains tax on Argentine investors, seen as one possibility to help boost revenue as the Macri administration tries to cut the fiscal deficit.
Until now, Argentines have not paid taxes on profits from investing in stocks and bonds. Critics of the potential tax say that given the country’s high levels of inflation, nominal profits from capital gains are minimal in real terms.
It was not clear if the government was considering including the tax in a sweeping fiscal reform bill planned for next year.
“I consider it a fair tax, it exists all over the world,” Caputo said. “I don’t know if it’s the right moment to do it because in the short-term I‘m not sure if it will generate any benefit for us.” (Reporting by Eliana Raszewski; Writing by Hugh Bronstein and Luc Cohen; Editing by W Simon)