The legislature approved on Monday a bill to discourage the entry of speculative foreign capital, also known as “capitales golondrinas”. The bill passed with 36 of 44 legislators in favor, and will need to pass one more time before becoming law.
The law would give the board of the Central Bank (BCCR) the power to issue a declaration of imbalance in the national economy due to capital inflows from abroad. In this case taxes of up to 30 percent could be applied to prevent capital flight. Also, foreign (non-resident) investors would be required to make a mandatory deposit with the central bank that corresponds to 25 percent of the amount they plan to invest in the country.