Ambassador Argüello explains to the US business community YPF seizure
Argentina explained that the YPF seizure was carried out “in order to avoid an energy crisis” in an article which was published in the US edition of The Financial Times newspaper and signed by Ambassador Jorge Argüello.
“We implemented these measures to avoid a national energy crisis: the dependence on costly imports of energy due to the lack of investment in new oilfields by Repsol. Had we not taken this measure, we would have broken our promise to the Argentines of doing everything in our power to keep self-sufficiency in energy, which is essential for our economic growth and competitivity,” Arguello stated.
“Our economy has grown considerably since 2003, and has done so at levels similar to those of India and China and leads the region along with Brazil. Poverty has decreased and the job rate has soared. However, ever since Repsol bought YPF, oil production fell by 54%”. Arguello also stressed the fact that “the conflict of interests between YPF major shareholder- Spanish oil giant Repsol- and Argentine development goals was an important point of discussion”
“While YPF net profits between 1997 and 2011 stood at 16.6 billion dollars, 14.2 were allotted to investors as dividends, and during the same time period, Argentina’s new oil fields were not explored”.
“As a result, in 2011 and for the first time in two decades, Argentina had a trade deficit in fuel. Argentina was the only Latin American country without control of this strategic resource, which plays an essential role in our economic development. ”The obligation of YPF is to reorient its goals to serve the interests of our country and its citizens, not only to its private shareholders.
”YPF will continue to be a company with private participation and Argentina is open to foreign investments in the company, as long as investment leads to the expansion of oil and gas production and not only for the transfer of profit to pay dividends,” he concluded.
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He also fails to mention why the Argentine government only nationalised the foreign owned parts of YPF, and not those parts owned by private Argentine investors.
And finally he also fails to mention that the seizure was illegal according the their own constitution, which they then had to change to make it legal, and then applied it retrospectively.
He really must think the US business community are stupid. However, you don't get to be a successful business man or woman by being stupid or frivolous with your money.
If Mr Arguello believes that this letter will encourage businesses from North America (especially the US) to invest in Argentina, he must be more deluded than I thought.
Between you and me, if we are to pay for what we get, the Big Mac should come with a few quids at delievery :)
No need to pay them back, they filled their pockets already, not fulfilling their obligations. Hence, all is settled, talk to the WTO and fill in some forms, should you disagree...
In a cigar smoked filled room somewhere, Old Money men are working on the pay back, the last time they were miffed was around about the same time as the Asian meltdown when a certain Malaysian leader was rubbing them up the wrong way with hydroelectric dams and beer sponsorship of Commonwealth games..............“One more single malt dear boy?, now what were saying about taking our money out of that country”........... Ding Dong
At some point very soon Arg is going to need Int'l funds to keep themselves going then they will have to come up with some sort of plan to pay off the holdouts, ICSID judgments and YPF.
It is sooner rather than later...
Like the rest of the cretins allied to The Mad Bitch of Argentina they think that the rest of the world is stupid enough to believe their lies.
Repsol having to sell oil to Argentina at US$ 40 per barrel when the world price was US$ 100 per barrel had more to do with the lack of investment in new fields than anything else.
But I just cannot wait for the 'new' management to demonstrate their lack of ability. And more importantly their lack of funding for the new fracking fields.
Apart from the so called 5% instant rise in 'production' as a result of the oil being stored because nothing was moving while the Old Git and HomoBoy were 'running New YPF' to the release under the new patsy nothing has been announced!
We have seen Patsy lecturing a bunch of malevolent looking 'workers' telling them he needed hundreds of days to plan (especially to do an asset audit I should think) but that is about it.
Appartently Patsy was asked to take over two years ago but turned them down when they didn't come up with the money he thought he was worth. Now we will find out who was right.
public interest must be authorized by law and previously compensated.”
Banco del Sur :)
I think I am correct that the Bank of the South is in fact bankrolled by Brasil?
And you expect them to bankroll this bunch of crooks?
Ha ha ha, ah ah ah, I have fell off the chair laughing.
This is the most recent thing I could find regarding Banco del Sur
www.seprin.com/2011/09/08/argentina-backs-membership-in-regional-banco-del-sur-lending-plan
This article doesn't really say, though, if this bank actually exists as more then a proposal or if it has been funded yet. Do you know any different?
The funding is in place, as is the location of the headquarters, in Venezuela
A little update on Banco del Sur.
Uruguay has indeed ratified it per April 2012, meaning Banco del Sur is live and kicking as per May 2012. It has started...
The bank is active per May 2012, so you can freely start inventing arguments about how Argentina financed it... It's not in the future, it already happened :)
www.ft.com/intl/cms/s/0/d0b95244-d97d-11e0-b52f-00144feabdc0.html#axzz1wAT9zNi6
Interesting reading, but old news. Your link is from September last year, and a lot of water has run under the bridges since. Banco del Sur is a reality as for May 2012, after Uruguay ratified it in April. Now we are only waiting for Brazil and Paraguay to ratify it for full effect :)
BTw Arg needs U$ 15 BILLION/yr minimum to get the fracking going...never going to happen.
15B/year for what? Only to proove you're right, I would guess :)
And it's yanqui, with lower-case letters.
If you say so :)
I love telling you this but Denmark is a part of the EU but does not use the Euro.
www.eucountrylist.com/
You are a pitiful lair and I must conclude you are Argentinian and not Uruguayan.
Ciao!!!!!
I'm fully aware of the fact that Denmark is part of EU :)
According to yanqui, I would be a maid or a gardener in the EU, and regarding the fact that I'm IN Denmark and not active in any of those professions, I assume Denmark isn't a member of the EU, in yanqui's little world...
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