Argentina plans to sell as much as $8 billion in bonds that pay little to no interest as one of the options available for tax evaders seeking to repatriate money held abroad.
Argentina will offer as much as $3 billion of three-year bonds that pay no interest and $5 billion of notes due in 2023 that pay 1 percent to tax evaders with undeclared assets overseas, according to the official gazette. That compares with an interest rate of 6.3 percent on overseas debt due in 2026. Argentines who want to come clean can also choose to pay taxes and penalties on the cash held abroad instead of buying bonds. The government may increase the size of the three-year bonds if it’s oversubscribed, but won’t reopen a new tranche of the seven-year bonds.
