Fri Jan 25, 2013, 11:22 AM
naaman fletcher (6,866 posts)
Repsol Says Itís Not in Talks With Argentina for YPF Indemnity
The important paragraph is the last one in this post. Although Argentina has signed onto a global treaty for investment disputes, Kirchner wants to ignore that treaty and have Argentina decide on it's own what to pay Repsol.
To me this is surprising because Venezuela has actually faired quite well it seems in international investment disputes, so it's not clear why Argentina wouldn't expect to do similarly well.
One possibility is that Kirchner simply doesn't wish to pay anything reasonable, and doesn't care that leaving the treaty would result in less investment in Argentina. Another possibility is that the capital flight that she has caused has gotten so bad that Argentina simply doesn't have the means to pay anything meaningful.
Repsol SA (REP), the Spanish oil producer stripped of its Argentine unit last year, said the South American government is refusing to discuss compensation for the nationalization of YPF SA. (YPFD)
ďWe are not engaged in any negotiation with the Argentine government,Ē Arturo Gonzalo, Repsolís director of institutional relations and corporate responsibility, said today at an event in New York. ďThey donít talk and they donít pay.Ē
Spanish Foreign Affairs Minister Jose Manuel Garcia Margallo said Nov. 13 that there is space to negotiate terms for Repsol departure from Argentina. The Madrid-based producer filed a claim against Argentina with the International Center for Settlement of Investment Disputes, a Washington-based organization belonging to the World Bank, according to a Dec. 3 regulatory filing. Repsol said at the time it made the arbitration claim after having completed a six-month period since it notified Argentina of the disagreement.
President Cristina Fernandez de Kirchner said April 18 that compensation will be determined by Argentinaís National Appraisal Tribunal, a government-chartered agency that helps determine the value of disputed assets involving companies or governments.
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Response to naaman fletcher (Original post)
Fri Jan 25, 2013, 11:28 AM
dipsydoodle (32,692 posts)
1. She hasn't got the doh re me.
Last edited Fri Jan 25, 2013, 11:29 AM USA/ET - Edit history (1)
There was an issue a couple of months, which doubtless persists, when she expected holders of local bonds within the country to be paid in Pesos instead of the agreed US$ on which they were based.
I would doubt Repsol would take payment in Pesos either.