AFTER ARGENTINA, FIRMS AT RISK OF MORE ASSET RAIDS
International investors rattled by Argentina's multibillion-dollar grab of the country's main oil firm should steel themselves for other states to raid foreign-held assets as one easy solution to their economic woes.
Buenos Aires' high-profile seizure of YPF from Spain's Repsol is unlikely to set off a wave of out-and-out asset expropriations.
What repercussions Argentina suffers may determine how far other countries go in their interventions with investors.
Lockton's Peter Hornsby weighs in "Argentina won't know the true cost of its actions for a while. It increases your risk profile, the cost of investment goes up and the return on investment goes down. And when insurers pay a claim they won't rush to insure that particular risk again."
Read the full article at Reuters.
Financial & Political Risks