LatinNews Daily Report - 30 September 2013

ECONOMY | ‘Whitewashing’ deemed a “failure”. On 28 September the head of Argentina’s tax authority (Afip), Ricardo Echegaray, said that the package of economic measures launched by the government led by President Cristina Fernández back in May aimed at encouraging Argentine holders of undeclared US dollars to deposit their foreign currency holdings in the local financial system had been “a failure”. The measures, which the local media described as a government-sponsored ‘whitewashing’ of dubious funds, gave all holders of undeclared dollars a three-month window to deposit their funds in local banks without having to pay any tax penalties. With the measure the Fernández government had hoped to attract some US$4bn into the foreign currency-starved domestic financial system. However, latest central bank figures show that only US$260m was deposited ahead of the 30 September deadline. At an event attended by financial sector representatives, Echegaray recognised that the measures had been unsuccessful, but complained that they had not been “supported by the local banking sector”. When asked if the government would now seek to extend the deadline, Echegaray said “this was never contemplated by the government… and it is not probable that President Cristina Kirchner [sic] will announce an extension on Monday [30 September]”. When asked whether the government was considering alternative measures, Echegaray responded: “we are always analysing things, we discuss them with the President. But for now I don’t think we will be doing anything more”.

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