The Ministry of Economy announced that it has managed to regularize more than US$18 billion in cash as part of the Asset Regularization, a figure that exceeded the Government's initial expectations. The initial stage of this process was extended by one more week, until November 8, due to IT and administrative issues that arose in recent days.
According to official data, the amnesty initiative was successful and allowed local companies to raise liquidity at low rates, while country risk was significantly reduced. Large companies found an opportunity to secure financing through the issuance of negotiable obligations in dollars, and a demand for foreign currency was observed to be lower than expected.
The amnesty offered tax benefits for those who regularized assets, allowing declarations of up to US$100,000 without penalty and applying a 5% rate on the excess within the first stage. Starting November 9, the second stage will begin with a rate of 10%, followed by the final phase between February and April 2022 with a 15% on the excess.
The Government encouraged Argentines to participate in this regularization, highlighting the opportunity to invest in Argentine stocks, sovereign bonds, negotiable obligations, mutual funds, or real estate projects through the CERA account for those who must declare amounts exceeding US$100,000. Investment in these instruments will be enabled until January 2026.
The injection of dollars into local assets had an impact on the financial market, with a decrease in financial dollars for four consecutive months and a marked increase in investments. Additionally, a historical record was registered in the capital markets, with the Buenos Aires stock exchange close to highs since 2018 and an increase in the nominal drop of financial dollars.
Despite the technical inconveniences experienced during the last week, the Asset Regularization continues to advance, providing Argentines with the opportunity to legalize assets uniquely and obtain significant tax benefits.
