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Colombia Wants to Eliminate Bond Tax to Lure Foreign Investors

July 14, 2021, 7:49 PM

Colombia’s Finance Ministry plans to push for eliminating the withholding tax paid by foreign bondholders in a bid to attract investors to its local debt market after the country’s sovereign debt rating was cut to junk.

The ministry, in the revised tax bill to be presented next week, will propose slashing the tax to 0% from 5% currently in a market where foreigners hold about a quarter of the total outstanding local peso bond, or TES, debt, Finance Minister Jose Manuel Restrepo said in an interview.

“This is in order to be more attractive at this time for the issuance ...

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