MercoPress. South Atlantic News Agency
Argentine president and agro-exporter Vicentin CEO scheduled to meet on Thursday
Argentine president Alberto Fernandez will receive this Thursday the board members of one of the country's largest agro-exporter groups, Vicentín, following the government's decision to intervene the company, a controversial measure that triggered an immediate reaction from congressional opposition and public opinion. Read full article
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Disclaimer & comment rules”The measure (to intervene Vicentin) has also surprised and shocked the business community since it has strongly eroded the private sector confidence.”
Jun 11th, 2020 - 08:47 pm - Link - Report abuse -2No honest business in Argentina can feel threatened by Alberto Fernandez' decision to intervene Vicentin because the company is an exceptional case. However, owners or executives of any business having taken huge loans, scurried the money away, and put the business in a bankruptcy situation should be, obviously, concerned but not about the government precisely.
Vicentin executives will need to explain what they did with $1.4 billion USA dollars they owe to almost 2,000 entities and persons in concept of crops purchased; to over 500 entities and persons for goods and services; to 37 financial institutions; to 19 fiscal and custom departments; to 98 shareholders; and three related societies.
Main creditor is Banco Nacion with $262 million, granted against the bank's own policies in suspicious circumstances.
President Fernandez has said he is all for productive capitalism; however, he added, it's a different matter if businesses veer toward financial speculation to the country's detriment.
We've decided you are bad for the country.
Jun 12th, 2020 - 11:30 am - Link - Report abuse +2Us taking your property will be good for the country.
bushpilot
Jun 12th, 2020 - 02:45 pm - Link - Report abuse +1The govenment seizing private property has always been a fools game, supported by foolish sycophants and result in foolish disasters.
Whether if it's private bank assets, private pensions, privately owned petroleum companies...
The secret to success is to control the government accounting and statistics to cover the wholesale plundering, corruption and final results. One big ongoing Peronist Ponzi scheme that makes Bernie Madoff look like a Boy Scout...
Businesses abusing financial matters is bad for the country.
Jun 12th, 2020 - 03:21 pm - Link - Report abuse +1Government abusing financial matters is good for the country.
bushpilot
Jun 12th, 2020 - 05:27 pm - Link - Report abuse +1Well, according to Marxist-Peronist Enrique Massot in in many occasions the seizure of privately owned property by the govenment it's justified for the national good. Especially when it pertains for the betterment of its citizens.
https://finance.yahoo.com/news/venezuela-brink-famine-fuel-too-100000304.html
After all, “it's a different matter if businesses veer toward financial speculation to the country's detriment.” (You know, like trying to combat the government's wholesale theft of return on investment.)
Most comments on this thread have so far demonstrated little knowledge about the Vincentin case but a lot of ideology. Media outlets committed to private interests are also pushing their agenda.
Jun 12th, 2020 - 07:30 pm - Link - Report abuse -2Which is too bad. The Vicentin case, if properly investigated, may help uncover manipulation mechanisms by which successful corporations may, from one day to the next, appear insolvent.
Vicentin grew exponentially through the four-year tenure of former president Macri, reachingt the fourth largest exporter position in 2019. However, things took a different turn from the day the preliminary elections in August 2019 gave the Fernandez-Fernandez ticket a majority.
Four days before the assumption of Alberto Fernandez as president, Vicentin announced it could not face its obligations for US $350 million.
In spite of all of that and more, the usual suspects here are livid that (oh the horror!) a government dares to intervene a private company.
Relax, people. Take a breath. The world is full of hues -- not black and white as you see it.
To borrow the thoughts of the exceptionally charming and perceptive Bianca Fernet explaining why idiotic Peronist sycophants like Enrique Massot are incapable of accepting reality.
Jun 12th, 2020 - 08:38 pm - Link - Report abuse +1When Macri’s administration came to Wall Street promising change and reform, he believed himself to be capable of engineering an economic about face. But it’s not the economy, stupid, it’s the culture. Argentina’s proclivity to over-borrow, over-spend, and then act like bewildered victims of some complex plot has nothing to do with the economic theory. All the austerity in the world is not going to magically transform Argentines into logical decision makers.
So to the IMF and Wall Street, let me offer you a jewel of wisdom. Think of the current administration and Alberto Fernandez as your versions of Fede, Martin, and Nico. When he says he loves you will pay back loans and not enact currency controls, he’s not lying – exactly. He’s simply Argentine, and thus bewilderingly capable of holding multiple opposing and incompatible ideas in his head, and simultaneously believing they are all true.
Argentina is on an inevitable path back to currency controls. Argentina will never dollarize. And Nico does love you, he just loves himself more. Just remember that Argentine promises – like a juicy cut of steak – are best consumed with a healthy pinch of salt.
It heavily snowed in the Andes last night. I will be skiing with my entire extended family at Valle Nevado on July 3rd! Life is good and the demand for superfood avocados continues to increase during these troubled times.
Currently, I don't have any doubts that Chile's Harvard educated self-made billionaire President will wisely lead my country through this difficult crisis. Chile has an outstanding world credit rating and a strong independent central bank.
We pay back our debts. Our government respects private property.
¡Saludos!
Chicureo
Jun 13th, 2020 - 05:30 am - Link - Report abuse -2Chicureo is dropping some pearls of wisdom to the intention of Wall Street and the IMF as to how to look at Argentina:
“Argentina’s proclivity to over-borrow, over-spend, and then act like bewildered victims of some complex plot has nothing to do with the economic theory.”
That is interesting, especially coming from our friend from Allende los Andes. Chicureo and some of his comrades commenting in this thread have often used the catchphrase that Argentina used to be so prosper but has been from crisis to crisis in the last few decades.
Well: As the story above develops, the world will learn a practical, real-life example of why Argentina's economy has remained seriously distorted.
Vicentin, a successful agribusiness company that grew exponentially during the four-year tenure of Mauricio Macri, went in less than a year from being Argentina's fourth largest exporter of soybeans to be on the verge of bankruptcy.
What happened to the about US $ 1.5 billion that Vicentin owes now after it stopped paying everybody, including farmers' crops it had purchased?
Future investigations will show the channels by which the money was spirited out of the country. This is not an act of God but just the way Argentina's economic agents work. Make money in Argentina, then take it abroad, and keep growing it in other ways.
Since August 2019, Vicentin took credits from Banco Nacion -- much more than allowed, and without doing checks on Vicentin's already compromised standing. In other words, Argentina's taxpayers contributed a chunk of Vicentin evaporated funds. Banco Nacion president Javier Gonzalez Fraga (appointed by Macri) will have some explaining to do over this.
To be continued.
Obviously our Kirchnerite flying monkey has a difficult understanding of the concept that Peronist nationalizations are just wholesale thievery. You can see the angry campesinos pissed with their President's larceny — with obviously many more planned. https://youtu.be/qthwtsKjCCE
Jun 13th, 2020 - 04:38 pm - Link - Report abuse +1We've seen the “outstanding success” of Kirchnerite nationalizations of Aerolíneas Argentinas and YPF in 2008 and 2012 — adding state control in another strategic sector of the economy. This Cambiemos action is clearly a revenge play because of political allegiances — as Vicentin was the main (declared) financial contributor to Macri’s electoral campaign fund.
Fernández's move is similar to Venezuela’s Hugo Chávez nationalizing of Sidor, a local subsidiary of Argentina’s multinational Techint that the Caribbean nation took over in 2008 during a flurry of expropriations that did not end well for Venezuela’s economy.
It's clear that Vice President CFK's camp is undoubtedly interested in controlling certain firms in key areas of the economy, including grain exporting, Argentina’s main source of hard currency and the Kirchnerite youth organization La Cámpora owns a consultancy agency (Analogías) which is currently surveying how much public support there is for nationalizing electricity and gas companies.
The decision to take over Vicentin is are signal to the international giants ADM, Bunge, Cargill and Dreyfus for Argentina’s massive soy crushing market — to bow down again kneel before their Peronist masters and pay tribute. (Reminds me of the famous question to an American gangster: “Why do you rob banks?” and the answer was “That's where the money is!”)
For Fernández, Vicentin’s bankruptcy was an opportunity for revenge and looting the grain industry.
Cheering this stupidity is why idiotic Peronist sycophants like Enrique Massot are incapable of accepting reality. (Perhaps in his forthcoming comments, he can also explain why he remains mute about the evil Maduro regime.)
Some have rushed to judgment in relation to the Argentina government’s decision to intervene export agribusiness and soybean crusher Vicentin and for sending an expropriation bill for Congress’ consideration.
Jun 13th, 2020 - 09:34 pm - Link - Report abuse -2One illustrious commentator -- who is not an Argentine but lives on the other side of the Andes -- appears quite upset by the news, and has produced quite a bit of writing attacking the decision of president Alberto Fernandez.
Chicureo, who has ignored popular demonstrations going on in his own country, has suddently found a new interest for popular expression and is now cheering protests against Vicentin intervention.
“You can see angry campesinos pissed with their President’s larceny,” enthuses our distinguished commentator.
I'm impressed.
Peppered with insults, allusions to ‘Venezuela,’ ‘gangsterism,’ and similar, Chicureo’s posting is but a display of his myopic, backward views.
There is more, however.
“The decision to take over Vicentin is are signal to the international giants ADM, Bunge, Cargill and Dreyfus for Argentina’s massive soy crushing market — to bow down again kneel before their Peronist masters and pay tribute,” noted Chicureo.
Well, my dear Chicureo: it may be interesting to you to know that Vicentin exports approximately 9 per cent of the total. Hardly a position allowing control of the market.
However, here’s the cake’s proverbial cherry in my opinion:
“The Kirchnerite youth organization La Cámpora…is currently surveying how much public support there is for nationalizing electricity and gas companies.”
Say, Chicureo: How many years one gets in the slammer for conducting a public opinion survey?
Gentlemen...
Jun 13th, 2020 - 10:04 pm - Link - Report abuse -2The above should read...:
- “The Kirchnerite youth organization La Cámpora…is currently surveying how much public support there is for *REnationalizing electricity and gas companies.”
*(Privatized in1991-92)
I say...: How many years one gets in the slammer for conducting deprivatisations of former state owned companies...?
Good THINKing point!
Jun 13th, 2020 - 10:47 pm - Link - Report abuse -2Estimado THINK
Jun 14th, 2020 - 02:19 am - Link - Report abuse +1Of course, they know where the money is...
Well, it works well for my country's defense budget, so I should probably not be critical since we did nationalize our copper business. Fortunately we eventually allowed for new privately owned investment.
Chile has reasonably enacted, with assistance from Ricardo Lagos — denationalizing almost everything else.
I'm always fascinated with Argentine creative accounting that justifies taking a decade to rebuild the world's most expensive icebreaker or save money by doing its own complex submarine retrofitting.
After all, what could possibly go wrong?
Estimado Sr. Massot...
Jun 14th, 2020 - 09:58 am - Link - Report abuse -1Feliz natalicio del Ché..., ché....;-)
Estimado Troglodytes Shicuréoensis...
Felíz día de su bandera... (1777 ;-)
Che was born in Canada?
Jun 14th, 2020 - 01:39 pm - Link - Report abuse +1( Facepalm...! )
Jun 14th, 2020 - 01:50 pm - Link - Report abuse -1Chicureo
Jun 14th, 2020 - 03:19 pm - Link - Report abuse -1I'd have thought you'd be more sympathetic to the farmers who weren't being paid for their crops due to the bankruptcy.
What a truly amazing place Argentina is, big established companies can suddenly become insolvent following an election result, but don’t worry the new government has a long track record in wanting to run state owned businesses.
Jun 14th, 2020 - 05:44 pm - Link - Report abuse +1You just couldn’t make it up.
DemonTree
Jun 14th, 2020 - 06:42 pm - Link - Report abuse 0Reading 'La Nación' or ' LaClarin' will give you a window into how the Peronist-Kirchnerite move is a clearly revenge play against Vicentin for being the main financial contributor to Macri’s electoral campaign fund as well as in controlling part of the grain exporting — one Argentina’s main sources of hard currency.
Pugol-H
You'll notice how you hear crickets regarding the icebreaker and submarine.
Crickets...?
Jun 14th, 2020 - 07:18 pm - Link - Report abuse -1Still envious about the Argie icebreaker..., huhhhh...?
Understandable...
About the submarine..., as you well know..., the whole process..., including its retrofitting and ordering it out to sea in a completely defective state was..., from the beginning to the end under the TOTAL control of the Argie Navy ...
Truth will surface in a couple of years and it won't be pretty for your “brothers in arms”..., milico...
Chicureo
Jun 14th, 2020 - 07:25 pm - Link - Report abuse -1And how did Vicentin end up in a debt crisis before Alberto even took over as president? Nationalising a bankrupt company is a little different to taking over a successful and productive one.
DT
Jun 14th, 2020 - 08:39 pm - Link - Report abuse -1Good point. That is why president Alberto Fernandez has said the intervention is in fact a rescue operation to save Vicentin from being either appropriated by a foreign group or dismantled and purchased in little pieces.
At the same time, a judicial investigation has been started to determine how a powerful and growing corporate group could, in less than a year, become insolvent -- even when receiving generous credits from Banco Nacion (another matter under investigation).
Of course, among some of those most opposed to the government intervention are the ones who don't want the truth exposed.
However, for Argentina, the Vicentin case may help make the public know the many ways in which money gets channeled out of the country by resourceful private interests, to the detriment of the country's economy. Let's not forget that, among those impacted (scammed) by Vicentin there are 2,600 producers who handed in their harvest to the company and were left hung out to dry.
Children, children, children...
Jun 14th, 2020 - 09:51 pm - Link - Report abuse 0If one reads many of the online articles of La Nación and LaClarin you'll understand the background and creative accounting (pre-emptive larceny) done in anticipation of the incoming government by the equally devious Vicentin administration. (There is no honor among theives in Argentina)
My thoughts regarding the icebreaker are unnecessary, but the submarine tradgedy was not because of the captain and his fated crew.
The ARA admiralty and several in the CFK administration should be prosecuted for manslaughter.
Sad...
Chicureo
Jun 16th, 2020 - 05:05 pm - Link - Report abuse 0Or the destroyer that caught fire, rolled over and sank in port.
Whatever happened to the plan to equip a sub with a nuclear power plant?
DemonTree “Stop lying that I'm 'prepared to capitulate to Argentina's illegal claim”.
Jun 19th, 2020 - 04:38 pm - Link - Report abuse 0DT “And my opinion is that if the Junta had not invaded the Falklands would be Argentine today. The dictatorship would have ended eventually even without losing a war, like it did in Chile.”
https://en.mercopress.com/2018/01/20/francis-blasts-corruption-calls-for-greater-transparency-in-public-entities-private-sector-and.-the-church/comments#comment482202
Hmm, you're an absolute appeaser. How can you make such a statement when Argentina has no legal claim? Both the UK and the FIG are completely in accord with the demands of International Law.
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