MercoPress. South Atlantic News Agency

IMF demands from Argentina respect for investors.

The International Monetary Fund Managing Director Rodrigo de Rato demanded from Argentina respect for foreign investment following President Nestor Kirchner's national boycott proposal against oil corporation Shell.

"IMF believes it's essential that investment rules, both for domestic and foreign investors, are clear and respectful of the functioning of private enterprise", said Mr. Rato who is currently visiting China and India.

These principles which are expected from any IMF member "are of course part of the policies which we will discuss with Argentine authorities, looking ahead to a possible and future program agreement with the IMF", added Mr. Rato.

Last week President Kirchner openly called on consumers to boycott Shell products since, according to his words, the corporation by increasing fuel and lubricant oil prices 2,6% and 4,6%, "pretends disproportionate profits".

Mr. Kirchner said that Argentine consumers, "peacefully" should not buy nothing, "not even a tin of lubricant oil" from Shell which he accused of contributing to the inflationary upsurge of the last few months in Argentina.

However Mr. Kirchner's appeal received almost immediate support from consumer associations and picketers who even occupied some of Shell's gasoline service stations.

"When someone says we're charging above what we should or that our profitability is outrageous, it's simply not true. We're loosing money, our business is not profitable" Shell Argentina CEO Juan Jose Aranguren told the Buenos Aires press.

"It's a very hard moment, since who called on the boycott is not a deputy minister, a cabinet minister, but rather the President of the country", added Mr. Aranguren.

In spite of the boycott, last Friday US oil corporation ESSO announced it was also increasing fuel prices. However Repsol-YPF, Petrobras and Sol (Uruguay) said their prices would remain unchanged.