How Panama Papers May Become a Boon for Cash-Strapped Argentina
By: Charlie Devereux
When leaked Panama Papers listed President Mauricio Macri of Argentina as the director of an offshore shell company, he found himself on the front page of the world’s newspapers for all the wrong reasons.
But the documents may ultimately prove to be a blessing for his cash-strapped government and its ability to repay debt.
Macri’s administration plans to announce a tax amnesty this year with the aim of persuading Argentines to repatriate some of the estimated $400 billion they hold abroad. That effort is likely to get a boost from the leak of the more than 11 million documents from Panama law firm Mossack Fonseca as it showed that at least 270 Argentines held shell companies outside of the country. In 2014, Argentina also gained access to information about HSBC Holdings Plc’s operations in Switzerland that revealed 4,000 bank accounts belonging to Argentines.
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