Buenos Aires stock exchange against grain export Vicentin’s expropriation

After the Argentine government decided to intervene and help the grain exporter Vicentin, one of the largest in the country and which is undergoing judicial recovery, the Buenos Aires Stock Exchange issued a statement saying it stands against expropriation of Vicentin’s assets.

According to the agency, the expropriation of Vicentin is not the best way to solve the company’s problems. “It would be advisable that the intervention is aimed at ensuring an orderly negotiation process with creditors, which respects their rights, preserving the company’s assets,” said the entity.

The Cereals Exchange believes that extreme measures, such as expropriation, can damage the country’s image. “We see this example of company-government dialogue to find a solution that allows operations and jobs to be maintained as positive,” said the entity in the statement. Although the stock exchange entity sees the possibility of the government assuming a new debt of about US$1.5 billion to solve Vicentin’s problems as  “not the most convenient” for the public coffers.

Source: Valor Econômico

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