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If I am correct, the 30% rule has to do with investment money. This measure was established by the government to avoid speculation in Argentina of foreign investors. If I'm right it means that 30% of the money has to stay at the central bank for a year, unless it's used for a real estate transaction or something.
I noticed a lot of doubts about it here. I asked it to several people and as in lot's of the cases, I got several different answers.
[QUOTE=Dutchy]If I am correct, the 30% rule has to do with investment money. This measure was established by the government to avoid speculation in Argentina of foreign investors. If I'm right it means that 30% of the money has to stay at the central bank for a year, unless it's used for a real estate transaction or something.
I noticed a lot of doubts about it here. I asked it to several people and as in lot's of the cases, I got several different answers.[/QUOTE]I am not sure but if I am not mistaken the 30% need to be in Pesos and will be returned without interest after a year.
So lets say you buy a home of 100.000 USD you need to transfer 374.393 peso (Today's exchange rate from [url]www.oanda.com[/url]) and need to transfer 112.317,90 (aprox. 30.000 USD) to the Argentinian Central bank.
Lets say that in a year the exchange rate is 4,30 the Argentinian Central Bank returns you aprox. 26.000 dollar. That would be a 4.000 dollar loss or about 15%.
And once you transfer your money to the Argentinian Central Bank you also have the risk of losing all or most of your cash, which happend in 2001
Has anyone opened a brokerage account in BA? Any thoughts on buying stocks in Argentina.
Thanks
[QUOTE=Madmax69]Has anyone opened a brokerage account in BA? Any thoughts on buying stocks in Argentina.
Thanks[/QUOTE]Don't!
Argento
Well put Argento.
I think I will buy pussy with my money.
[QUOTE=Madmax69]Well put Argento.
I think I will buy pussy with my money[/QUOTE]Best choice ever.
Only money deserved to put in this populist and left wing country is pussy.
Follow my advice: this is only the beginning.
All Latinoamerica is fucked up: Evo Morales in Bolivia, Mujica in Uruguay, Chavez in Venezuela, Peronistas here. Angry feelings against United States are arousing everywhere, fueled by mass media new owners and high school students.
Fucking leftists, they think they will change the world!
Ja, ja, ja!
Let's see who is laughing the last!
[QUOTE=Madmax69]Well put Argento.
I think I will buy pussy with my money[/QUOTE]There is [u]this[/u] advantage - we see proof every day, here, that the Argentine women know what to do about "inflation".
[QUOTE=Madmax69]Has anyone opened a brokerage account in BA? Any thoughts on buying stocks in Argentina.
Thanks[/QUOTE]What would even make you consider doing that?
It depends. Why do you want to invest your money? To make more or as n intellectual exercise? If it is to make money consider the following:
1. Do you want to put capital in a place that actively discourages foreign investment?
[QUOTE=Dutchy]the 30% rule has to do with investment money. This measure was established by the government to avoid speculation in Argentina of foreign investors[/QUOTE]2. Argentinians that have money go to great lengths to get it out of pesos and offshore, ostensibly to to avoid the 'next' devaluation (doesn't matter when, it is part of their DNA to expect another one - think self-fulfilling-prophecy) Very few that manage to do that reinvest in Argentina.
When you combine 1 and 2, above, and excess regulation and taxation this becomes a difficult place to invest (completely overlooking the perpetual graft) This has been part of the problem with my business here for some time.
This is an excerpt from Tenaris' Annual Report on doing business in Argentina. Though it is dated (2002) it outlines some of the problems and BS a multi-national corporation has when doing business in Argentina. Another interesting development with Tenaris is Venezuela's Chavez nationalized the Argentine subsidiary of Tenaris (Siderca) earlier this year and old Christina's knickers were in a knot. Do not think the thing has been resolved yet. Maybe she just got paid off. Read any company's Annual Report (Repsol) and one can get an insight on how difficult it is doing business here. Stick with wine, women and song.
[quote]The Argentine government has historically exercised significant influence over the economy. In response to the current crisis, since December 2001 the Argentine government has promulgated numerous, far-reaching and sometimes inconsistent laws and regulations affecting the economy. We cannot assure you that laws and regulations currently governing the economy will not continue to change in the future, particularly in light of the continuing economic crisis, or that any changes will not.
Adversely affect Siderca's or Tenaris's business, financial condition or results of operations. Due to the current social and political crisis, investing in companies with Argentine operations entails risks of loss resulting from:
• taxation policies, including direct and indirect tax increases;
• potential interruptions in the supply of electricity, gas or other utilities;
• expropriation, nationalization and forced renegotiation or modification of existing contracts;
• restrictions on repatriation of investments and transfer of funds abroad;
• civil unrest, rioting, looting, nation-wide protests, road blockades, widespread social unrest and strikes; and.
• changes in laws and policies of Argentina affecting foreign trade, taxation and investment.
Several of the steps taken by the Argentine government as described above have had and could continue to have an adverse effect on the ability of Siderca to make payment of dividends or other amounts to us. Pursuant to certain decrees and implementing regulations of the Argentine Central Bank, Argentine individuals and companies, including Siderca, are subject to restrictions on the making of certain transfers of funds abroad and to the prior approval of the Argentine Central Bank. Until February 7, 2003, transfers by Siderca of U. S. Dollars destined to the payment of dividends outside of Argentina were subject to the prior approval of the Argentine Central Bank. For example, on December 4, 2001, Siderca distributed a dividend consisting of cash and shares of Siderar S. A. I. C. Instead of distributing the unregistered Siderar shares directly to holders of the ADSs, the depositary, pursuant to the Siderca American Depositary Receipt, or ADR, deposit agreement, chose to liquidate the Siderar shares in the Argentine market and deliver the cash proceeds to holders of Siderca ADSs. However, due to the Argentine government's emergency measures, the depositary was prevented from transferring out of Argentina either the ADS holders' cash payments or the proceeds from the sale of the Siderar shares until March 3, 2003. If restrictions of this kind were to be imposed again in the future, Siderca's ability to transfer funds in U. S. Dollars outside Argentina for the purpose of making payments of dividends or other amounts to us and to undertake investments and other activities that require payments in U. S. Dollars would be impaired.[/quote]
[QUOTE=Damman]This is an excerpt from Tenaris' Annual Report on doing business in Argentina. Though it is dated (2002) it outlines some of the problems and BS a multi-national corporation has when doing business in Argentina. Another interesting development with Tenaris is Venezuela's Chavez nationalized the Argentine subsidiary of Tenaris (Siderca) earlier this year and old Christina's knickers were in a knot. Do not think the thing has been resolved yet. Maybe she just got paid off. Read any company's Annual Report (Repsol) and one can get an insight on how difficult it is doing business here. Stick with wine, women and song.[/QUOTE]Royal Dutch Shell runs a refining, distribution and a mixed ownership group of petrol stations throughout Argentina. During a shortage of fuel, Nestor Kirchner wanted the oil companies to sell their fuel below cost. Shell said no. The government response was to accuse Shell of poluting the river that runs into la Boca and got a court order from a tame judge, (aren't they all? that closed Shell down instantly. Being the only refinery in the south of BA, (there being only one other at Zarate in the north) naturally the country ran out of fuel. Shell refused to compromise and suggested to the government, when they threatened to imprison the company president, that they would pull out of Argentina. The government responded by saying that Shell was a parasite in Argentina and that it was their moral duty to also explore and develope oilfields. Shell naturally said that had not been their understanding of their business responsibilities and also that they had no intentions in Argentina to be more than their existing business. Shell refused to give the government any face-saving way out and eventually the government admitted there had been no polution caused by Shell. Their trustworthy judge, gave the all-clear for Shell to resume operations.
So buying shares in Argentine companies is not a good idea. One day they are a rooster and the next day a feather duster. Depends entirely on the wim of the illogical government. And I have a 100 similiar stories.
As far as the government is concerned, it is great for their political clout to be seen as anti-business. And their constituents lap it up like mother's milk!
Argento
[QUOTE=Argento]As far as the government is concerned, it is great for their political clout to be seen as anti-business. And their constituents lap it up like mother's milk! Argento[/QUOTE]The people that lap it up don't realize that they are the ones being screwed, not the companies. They are the ones not benefiting from foreign investment dollars or Euros and jobs (and other benefits) that investment creates.
The multinationals can bestow their beneficence on some other country rather than take undue risk in Argentina.
Hi,
Does anybody know if this 30% guarantee is still in place with the central bank, as two real estate agents told me it did not apply for properties, as long as they are you main residence. Of course, they may say anything to sell. And I dcertainly do not intend to carry 100,000 US in cash either!
Anyway, your feedback is most appreciated,
Thanks.
Palermitano