Argentina reaches out to investors
Argentina says it wants to sign a truce with creditors and Spain’s Repsol
Despite a devaluation in January that rocked Latin American
financial markets, the governor of the Argentine province of
Buenos Aires on Wednesday said the troubled country wants to
solve problems with holdout creditors and Spain’s
Repsol so that it can tap capital markets again.
Daniel Scioli, a highly influential political figure in
Argentina, said that ongoing negotiations with creditors would
produce agreements and make the country an attractive
destination for foreign investment.
"All the negotiations that we are moving forward with
— the issue with Repsol, the [World Bank arbitration
body] ICSID, holdouts, the Paris Club — are going to
encourage and facilitate a strong flow of investments and I
invite the business world to look at this as an opportunity,"
Scioli told reporters in New York.
The government of Cristina Fernández nationalized
Argentina’s flagship oil company YPF in 2012 when
seized control of Spain’s Repsol majority
stake in the firm. Repsol is demanding compensation for its
shares, which it values at $10.5bn.
"We want to normalize this situation [so that] Argentina can
rejoin the global economy in full, what is known as the capital
markets, but we don’t want more debt to pay our
debt, we want investments for strategic needs," Scioli
Scioli, who is very close to President Fernández and
a leading member of the ruling coalition, said Argentina would
require investments worth $200bn in the next 10 years and
foreign investors were invited to chip in.
"We’ve lowered the debt, we have increased
exports, we’ve doubled economic growth, now is the
time to give sustainability to this growth, to this recovery,
to this new stage of development and without a doubt credit
will be very important for the private sector and for public
investments as well," he said.
Regarding fears that the country may be depleting its
foreign reserves since the peso fell in late January, he said
that Argentina was on track for record crop harvests this year,
which would allow the country to replenish its foreign currency