Investment in Argentina
International and Argentine
companies have announced nearly $9 billion in investments in
the country, signaling that confidence is beginning to creep
back, nearly two years after the government defaulted on its
debts, devalued the currency and unilaterally rescinded
contracts that forced dozens of banks and companies into
insolvency. Spanish-owned Repsol-YPF , which
has most of its reserves in Argentina, announced it would
invest $5.5 billion through 2007.
Argentine-owned Techint announced it will
build a $1 billion gas pipeline stretching 1,500 kilometers
(930 miles) from Bolivia to central Argentina. The Argentine
government will support the project with $250 million in loans.
Crown Corporation and local partner
Lambert Financial Investments said they will
invest up to $1 billion in Argentina in home building, waste
management and security companies. Crown is a Bermuda-based
investment fund that specializes in undervalued companies.
Telefónica of Spain and its wireless
unit say they plan to invest $700 million to upgrade their
fixed-line and cellular networks in Argentina....
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