2023-12-27 06:40:56
A New York judge ordered Argentina to pay a deposit of $16.1 billion by January 10 pending an appeal decision and authorized the Argentine state to use its stakes in YPF to pay. this deposit.
Argentina plans to create a special tax to finance the deposit of 16.1 billion dollars demanded by the American courts in the dispute linked to the nationalization of the oil tanker YPF, President Javier Milei announced on Tuesday. Argentina is appealing its September order by a New York judge to pay $16.1 billion in damages to Petersen Energia and Eton Park Capital, which between them held a quarter of YPF’s capital and consider themselves wronged by the nationalization of the oil giant in 2012. The judge, Loretta Preska, ordered Argentina to pay a deposit of the same amount by January 10 while awaiting the appeal decision. It authorized the Argentine state to use its stakes in YPF to pay this bond, as the country did not have sufficient liquidity.
“There is a problem, because we don’t have the money,” declared Argentina’s new ultraliberal president Javier Milei during an interview with the La Nacion+ channel. “But yes we have the will to pay,” he added.
The government, he continued, is studying the creation of a “perpetual obligation” called the “Kicillof tax”, named following President Cristina Kirchner’s Minister of Economy, Axel Kicillof, responsible for the privatization of YPF in 2012. This name was chosen so that “Argentines remember every day the horror committed by Kicillof and that, every day, we must pay a certain amount of money to pay for the mistake of a boy whose perspective ideological has harmed the 46 million Argentines,” explained the president.
Repsol benefited from financial compensation following nationalization
YPF, a former subsidiary of the Spanish group Repsol, was largely nationalized in May 2012 under the presidency of Cristina Kirchner (2007-2015), raising the question at the time of the security of financial investments in Europe’s third largest economy. South America. In 2014, Repsol concluded an agreement with Buenos Aires “guaranteeing” financial compensation of around five billion dollars.
However, the case was brought in 2015 before the American federal courts by the firm specializing in litigation takeovers Burford Capital, representing YPF shareholders Petersen Energia Inversora and Eton Park Capital Management. These minority shareholders did not receive compensation, unlike Repsol, and therefore filed a complaint alleging that the country had not filed a public takeover offer as required by law.
Most read
1703659552
#Argentina #considers #special #tax #finance #bail #YPF #dispute