Tuesday April 17, 2012
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Argentina: change of direction
Following the announcement of the expropriation of YPF Repsol, Spain's government threatens retaliation
President Cristina Fernandez seeking energy self-sufficiency
Conference at which the president of Argentina, Cristina Fernandez de Kirchner, announced it will send to Congress a bill to expropriate most of YPF, company that responsible for the decline in oil production Ap Photo
Reuters
Newspaper La Jornada
Tuesday April 17, 2012, p. 2
Tuesday April 17, 2012, p. 2
Buenos Aires, April 16. Argentina YPF oil company stepped in and look for expropriate 51 percent of the company, controlled by the Spanish Repsol, a decision that emphasizes the state presence in the economy and triggered a conflict with Madrid, which threatened to retaliate.
Argentina's President Cristina Fernandez announced to applause that will send to Congress a bill to expropriate most of YPF, the largest company, which blamed a fall in the production of hydrocarbons requires to import and erodes the trade surplus.
YPF is all I want you to have clear, Fernandez said in a speech on national TV. As legislators and governors, Congress quickly approve the proposal, Fernandez said the country aims to give freedom to decide its energy policy and recover a lost self-sufficiency.
Hostile gesture: Madrid
The president explained that the actions that seek to expropriate are solely those having Repsol-YPF and not those of other private partners.
Following that announcement, the executive of Spain said that interprets the move as
a hostile gesture.
The government absolutely condemns the arbitrary power of decision to expropriate Argentina Repsol YPF shares, said Spanish Foreign Minister, Jose Manuel Garcia Margallo after an emergency meeting with President Mariano Rajoy.
There will be consequences, he added.
Fernandez previously said he did not answer what he called threats made from Spain. "This president is not going to answer any threat, will not answer any outburst is not going to echo disrespect or insolent phrases, because I represent the Argentines, I am a head of state, not a patotera (bully ), "he said.
Repsol-YPF has 57.4 percent of YPF, while the Petersen Group, the largest local shareholder, owned by the Eskenazi family, owns 25.4.
The Spanish company said it believes
unlawfulFernandez's decision and the legal fight, which would indicate that the conflict could end up in another lawsuit against Argentina at the International Centre for Settlement of Investment Disputes, the World Bank.
The European Union (EU), second largest export market for Argentina, also reacted quickly.
A forced takeover by the Argentine government will be a very negative signal to domestic and international investors and could seriously damage the business environment in Argentina, the spokesman said EU trade, John Clancy.
Carlos Bastos, an expert on the local energy sector, said the measure will drive away the millions and much needed investments to develop the Argentine megayacimiento Vaca Muerta, with huge non-conventional hydrocarbon resources.
do not think there is no risk investment that is willing to invest in the country, he said.
The bill will begin to be discussed Tuesday at the Argentine Congress, the lawmakers agreed AnÃbal Fernández and AgustÃn Rossi.
Stock decline
In Buenos Aires the titles of YPF fell 2.43 percent before being canceled their operations.
The sum of all evil is consummated by nationalization and this change strongly the trend of the action, said Marcelo Paccione, an analyst at Capital Brokerage Consult .
The current total capitalization of YPF is about 46 thousand 765 million pesos, or 10 thousand 640 million dollars at official exchange rate, according to the Stock Exchange of Buenos Aires.
The firm has lost more than 4 billion dollars of market value so far this year.The law of expropriation in Argentina provides the first instance, an agreement between the parties on the amount payable.
Without an agreement, you advance to a court where a judge asks a court to set the price of the transaction. Goldman Sachs said in a report that it is unclear how the government will pay 51 percent of YPF and if the rest of its shareholders would be willing to continue as a minority.
The bonds of Argentina's sovereign debt accelerated their decline after the announcement.
The news (YPF) sensitized the entire market and it showed very clearly in bonds with heavy casualties, as reflected by the country risk, synthesized an operator of private banking.
Faced with the barrage of ads, the Argentine country risk measured by the JPMorgan rose to its highest level since late November.
Founded in 1922, YPF was partially privatized in 1992, after years of reporting losses because they usually had to finance the Treasury.
During most of its history as a state company, YPF was conducted with strong political interference. Fernandez said the state's future conduct will be fully professional YPF. In Fitch's opinion, which on Monday downgraded the oil in local currency,
the control by the government lead to greater inefficiencies and less useful, since SOEs tend to incorporate strategies social entrepreneurs.
A regional example is PDVSA, the Venezuelan state oil company, to be financed social programs constantly President Hugo Chavez. Brazil's Petrobras has a better image among investors for greater transparency of their finances to go public, but is also criticized by strong government intervention in their strategy.
Argentina's energy needs have been a time bomb for years, but the government recently became priority because the rising cost of fuel imports is eroding the precious trade surplus.
Argentina, even without access to international credit markets after a default in 2001, its trade surplus has one of the few sources of foreign exchange.
Crude oil production fell 5.9 percent and 3.4 natural gas last year, when energy demand grew 5.1 percent, according to the Argentine Institute of Oil and Gas. The import of more expensive alternatives such as liquefied natural gas (LNG) and diesel, has more than doubled in 2011, about 9 thousand 300 million dollars.
EU and GB Reviews
Meanwhile, Daniel Volberg, an economist at Morgan Stanley, said in a report to clients that
the oil conflict is just one aspectof what he called the possible
radicalization of the politicsof the Argentine government has nationalized companies such as Aerolineas Argentinas, the funds private pension and most local water distribution, among other companies.
According to the consultancy Capital Economics, based in London, Argentina's decision highlights the
narrowness of their modeleconomic growth characterized by high consumption-driven, subsidies and price controls.
These policies have already forced the country to impose restrictions on the foreign exchange market and imports to guard the trade surplus, he said.
We see this (the proposed expropriation) as a negative perspective (and poor) for long-term investment and we believe it could spread a partial withdrawal of foreign investors in other sectors.
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- SE CARDENIZOarturozavalazOPPOSE THE DECISION OF KRISHTINA MEANS TO OBJECT TO A MEXICAN HISTORY AND EVEN YOUR OWN reverse, privatizing PEMEX
- Argentina go go!CarmeliteOkay, buna reflection. Calderon should not say anything and will be a four for it: It has nothing to say because there was once the Mexican nationalized our oil and support of people such expropriation was blunt, go to pigs and chickens with the humble people contributed to this process. Good for Cristina, women should learn from it first being human, and then by brave and principled woman. Learn corrupt officials, raterototes of PEMEX, which blinded by the lust for money does not know how to manage our precious resource, and re-will be time for Mexico as well. Let's go Argentina!
- CommentOsiris Cantúexcellent decision by the president,'' calder vergonzo0sa decision on
- ReviewFelixSince everyone thinks the same, I hope you publish this opinion because I disagree completely from other readers. Facts: a) F Cristina and her husband were in favor of privatization 10 years ago. b) three years ago Cristina 'nationalized' Aerolineas Argentinas, which now has the largest loss in its history and the country. c) expropriate firms in a country means that nobody is going to re-invest in the country. d) I am sure that none of my readers would like the State to expropriate your home or business after the purchase, however foreign it was. e) When Chavez expropriated Mexican companies, the Kirschner applauded. e) When influenza, Argentina was the second country to cut flights to Mexico (after Cuba). Spain never interrupted. There are friends ...
- If those are the arguments ...Jorgea) How good it rectified, b) tell me what Western international airlines have not had problems from the 11-S (how many failed?, parastatal were they?) c) This happened in Mexico, is not it, when privatizing PEMEX, ¿ that happened in the U.S. when bailed out the banks? THAT NEVER HAPPENS d) If I pay what is fair, and is of public interest, I would not mind, what right have they to demand fairness, justice, now if it was stolen practically? E) How much lost the people of Mexico for the expropriation of CEMEX?, and (sic)) Too bad for Argentina, and how good of Spain, but that "our friends" as ... Also, do not these Spanish who hit a cry to heaven for his beloved company was ceasing to be "Spanish" when it was discovered that PEMEX "invest" in his oil company?
- Pure marketJohnAh heck, in this article "information" only has a market, investors, investor interests, in short, all the business side, but where are the rights of the Argentine people to its policy and energy sovereignty? Why Spain itself may have its own oil company, which means its own energy policy and Argentina do not? Set the example of PDVSA as negative, does anyone know how much gasoline in Venezuela? when they find out they will go back on the cheap.Obviously Reuters is a consortium but as dog eat dog, it has to "inform" always from a purely business and social ever. Failure to meet the rights and are not enforced, they do not exist.
- Strongly agreelyonnTotally agree with your comment, entrepreneurial visions should never be the primary, but social ones.
- Expropriation in ArgentinaJesus VillagranThe Mexican free-thinking and welcome the brave desicion pais.Mexico progressive in that it did in 1938 and despite a gray administration, even profitable, generates more income than 30% of annual budget.
- In good timeAna FleichmanIf the rest of Latin Americans do the same with the Spanish monarchy elephant hunter, no doubt, the region would be much better. Well by the ovaries of Cristina and in good time the Argentine people, it seems that at least in the Southern Cone, the leaders finally reached that those countries waited for five hundred years.
- I support the commentFernando VillasanaMexicans welcome and support the sister republic of Argentina, rather than fight for their own resources and encourage, do not let the threats amedrenten or by those sizes Animo head of government ...
- ExpropriationMarijoseBravo, Argentina! Hear Spanish rulers: the years of conquest and colonization of Spanish America ended in the early nineteenth century. Listen, Calderon has added to your shameful epithets as ruler, the traitor, you have actually ratified as such
- the best governmentthe offspringfills me with joy that Mrs. President of Argentina will remove these thieves ibergrola repsol and what is the Argentine brothers, you have to tell felipe calderon as well ..... does with posts. good start to the day.
- clarityFrancisco Lopezintervention was for the purpose of expropriation. Someone in the wording of nationalization and La Jornada wanted betrayed the unconscious to the head. Watch out for that.
- In factRVFCunico NOT THE PANDA!
- LessonRVFJosephine, look carefully at Cristina. That really is pants! Here's your chance to pronunciarte for the defense of state sovereignty, but surely your employer runs if you say something against the "free market" .... or not?
- The oil expropriationMr. Luis Felipe Ayala SotoInduction of corruption, is a measure to drive change toward the privatization of state companies such as Pemex, CFE, etc. .. This mechanism is a logios practice and / or Spanish theologians operating in Mexico, through some of its Mexican utility. Is the new Spanish colonialism in Mexico. Oil is of the nations for the good of their people, so the profits are equally ... not worth the theologians put their hands and their hordes of free slaves from the electoral point of view, handled largely by dividing nations to negotiate support and that others take chopped oil, among other businesses. So we have seen, to date, in Mexico, after the assassination of Colosio. The more divided the nation, more utilities are the leaders of the lodges abroad for world leaders logios. Congratulations to President of Argentina, for his decision to nationalize the Argentine oil
- Nationalization {on YPFgabrielDear Mexican people, that beautiful reading these comments, Buenos Aires a big hug.
- Congratulations to the ArgentineCarlosThe monarchical and despotic Spain, the King who wanted to silence Chavez and the PSOE traitor who sympathizes with the Francoist PP, you can scream all you want, but united Latin America will become increasingly independent. Congratulations to the Argentine people and government. There will have to learn to efficiently manage the resources belonging to all the people, but that is a thousand times better to sell them, as did Menem.Experience shows that foreign investment helps, but the lead has to be the state representing the national interests.
- Congratulations to the ArgentineCarlosThe monarchical and despotic Spain, the King who wanted to silence Chavez and the PSOE traitor who sympathizes with the Francoist PP, you can scream all you want, but united Latin America will become increasingly independent. Congratulations to the Argentine people and government. There will have to learn to efficiently manage the resources belonging to all the people, but that is a thousand times better to sell them, as did Menem.Experience shows that foreign investment helps, but the lead has to be the state representing the national interests.
- Congratulations!Jose AntonioThat's right, is an intervention expropriation purposes, so hopefully what happens as a role model for other Latin American countries including Mexico remains unfortunately the black on rice ... poor us, with these rulers put de mie .. do ... critics of this act should review a little red giant, China, where the state remains in control of resources and not allow the greed of the multinationals take over what belongs to the people ... Cristina Congratulations!
- CYCLIC HISTORYLAGUNA FRAGOSO OMARAs always forget our origin and history, continuing the war between mainland Europe and European Americans, the true people of Argentina was annihilated with the Europeans arrived. And this is just another battle in the long-running World War for oil. Of course Cristina wants to steal more, we are aware that Argentina, Venezuela and China are even poorer countries owning and poorly managing their own resources. Also remember that Cristina is a dictator.
- By developing a lever oilJoseMexicans must have solidarity with Argentina and see for our interests. The nvestment in infrastructure in REPSOL has been shaken when we were not allowed the increase of shares in an investment by other dark. Having privatized oil slowly, now we import gasoline, do not invest in refineries, suffer increased gas and gasoline, we have allowed the investigation is terminated when the IMP was once national pride. Pemex has been used by our political discrecionlmente to pay debts as FOBAPROA. Enough! That's why I support Argentina.
- To learnLuisThis chair with skirts if you have many pantalones.Este is a clear example of what should the Mexican executive with many predatory companies make large profits here in Mexico than in their home countries. A clear example Santander bank with very high fees they charge. Further, the Canadian mining pollution besides, pagarn nothing for granted and most of ore extracted, shipped overseas. Another example, the appropriation of the Mayan Riviera by Spanish companies. Algnos months ago the Spanish government and the opinion criticized Pemex's investment in Repsol, arguing that this operation went against their economic and social interests. Turns out the cachupines tear their hair when they do not seem the actions of other governments. Rather than engage in regional economic solve their problems, which are partly the cause of the crisis.
- Spaniards out of Mexico!Enrique Magana ÀlvarezYPF and Pemex are national companies, something the submissive stateless persons appear or try to ignore. They are basic industries, vital to the treasury, on which progress or stagnation of the country, the comfort or discomfort of poblaciòn.Entregarlas foreign private interests is an act of treason is punishable by the majority to stagnation in Pobresa. This was understood by Lazaro Cardenas in 1938 and now Cristina Fernandez, who in acts of sovereignty RECOVER THAT IS NATIONAL HERITAGE. Do not hijack alien, as would have us believe.
- And ours?LuisThat the Mexican government stop walking drainer in matters that are not his concern.That better be devoted to constructing refineries and promertio both of which has not even a brick.
- ExpropriationCrescencioCongratulations to the President of Argentina, hard against the Spaniards! Would that make Mexico with BBVA Bancomer that charges fees for everything!
- CommentMarthyWith these examples of expropriation and nationalization of sectors of the economy as it is possible that Mexico's President defends job doing the looting by foreign companies in our countries. Is that intelligent and rational?
- That value!CuauhtemocThey are even a few centuries when the Spanish conquered us and it was a long period of abuse. That is part of our history does not absolve that nation that does nothing but time to reap what the tyranny and avarice of their ancestors planted. My greatest admiration for this woman, you can not precedir what happened but she has taken the initiative of what was done in 1938 by Mexico ...... and yes, I agree with that even profitable.
- recognitionmoonby my mother, what an honor as a woman president Cristina Fernandez. Long live the people's president
- I greet the president and his ArgentineErmilo perazaGood for the Argentines, by its president, who is added to the history not only of his country, but to the whole world and time independent. That a firm hand, that of a true woman of conviction who knows how to lead your country to your destination. Take care of her God, follow and uphold her Argentines. Merida, Yucatan, Mexico.
- pants that if "josefina"victor cThis is a message to vazquez mota, cristina fernandez because, if you have pants, because neither Calderon, has to defend the Spanish, just as traitors PAN poor as pristas, aliansistas, verdeecologistas and I hope I do not miss any game more, therefore that mota vazquez stay with their skirts at home and do not scrub the Mexicans
- Open Veins, veins closedRaulWhen the fox now, take care of your geese. Help, help, Latin American veins are closing!Sucking the blood will be more difficult! You can not trade with impunity as God intended!The colonies are getting tired of changing their gold mirrors and beads. Oil is the Argentine people. Courageous decision to a sister.
- Commentgiordanonacinalismos sentimental jerk can be read here; pathetic or aldo rpsol the fracso advantageous in Argentina, pathetic to the wolf (government) to herd sheep (ticket) to see the case d asqeroso mexico, oil for private, union, and nothing else , raises the price of oil and gasoline up here, is the destination d tercermundalia, failure and private sector if government igualq. China puts some estulto example, enslave and kill tyrants q d d 800millones hungry people to have military leadership, q disgust. the problem is administrative if not moral, is moral nuestrainferioridad d Third, nothing goes right for retro and neglect, are in government or private hands d
- good desicionalexI congratulate the president of Argentina for the best decision I take to expropriate the oil for the benefit of his people, unfortunately, in Mexico we have pure traitors that if he were in his hands as time Pemex was privatized but through the efforts of nationalist men not have gotten away with the neoliberals.
- Revelion of outragedJohn KingsArgentina riezgo it for investment? devalued dollars or euros? Argentina can and must barter with Mercosur, Venezuela, Brazil, China and Iran. The oil and its derivatives are sold alone is not bought with glass beads. We regard the shares of Repsol worth? We arrived at the JPMorgan Bank Occupy WALL STREET? In Spain the indignant?
- CYCLIC HISTORYLAGUNA FRAGOSO OMARAs always the media disinformation made just that, and do not report. Cristina is a dictator in a country with high poverty as Venezuela and China, nor yet and manage their own resources have been able to pull down their social gap, because they use much of those resources to pay bureaucrats and purely military spending. Recall that the true people of Argentina was destroyed with the arrival of the Spaniards. This being a litigation battle in the long war and world oil, today staged between Europeans and European Iberian America. It is important to read and remember that history always repeats itself.
- PantsOzomatliThe president of Argentina, Cristina Fernández, if a woman president in a skirt, but with many pants, not the woman arremedo policy Josefina Vazquez Mota. Let us follow the example given this character, comrades ahead of Argentina, all overthrow the PRIAN in elections! !
- cristinaMartiniArgentine friends who envy! ...
- ArgentinaSalvador Perez CardenasFinally an act of American dignity as long unseen. Congratulations to Dona Cristina Fernandez. Live Lazaro Cardenas and his example!
- CONGRATULATIONS RIGHT DECISION!OUTRAGED OILCONGRATULATIONS TO THE ARGENTINE ONE PEOPLE, IS A DECISION CORRECTA.CALDERON CORIFEA THE MOTA AND TRY TO JUST BECAUSE THEY SITRVEN rebut the gachupines and gringos.
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