...by what politicians do in these times. Expropriation is but one example of the massive political risks being marshalled back into the markets.
Argentina, which defaulted on a record $95 billion of debt in 2001, said it plans to seize 51 percent of oil producer YPF (YPF) (YPF) SA to stem an increase in fuel imports and boost control over the nation’s crude reserves.
Argentina will send a bill to Congress to take control of the Buenos Aires-based company from Spain’s Repsol YPF SA (YPFD) and avoid becoming “an unviable country,” after oil production slumped, President Cristina Fernandez de Kirchner said today in a speech in the Argentine capital. Compensation for the seizure will be determined by the National Appraisal Tribunal, she said.