Argentine 'Unpredictability' to Repel Investors After Debt Swap

Drew Benson
Bloomberg
June 24, 2010

Argentina may fail to revive interest from companies seeking to invest in South America’s second-biggest economy even after concluding an $18.3 billion debt restructuring offer.

“The thing investors hate the most is unpredictability,” said Alan Stoga, vice chairman of the Council of the Americas and president of New York-based Zemi Communications LLC, whose clients include Argentine manufacturers and agriculture companies. The government lacks “prudent and predictable” policies, he said in a June 22 phone interview.

Foreign direct investment in Argentina totaled $4.9 billion in 2009, compared with $26 billion in Brazil and $17 billion in Chile, according to the United Nations Economic Commission for Latin America. Brazil is the largest economy in South America followed by Argentina, Venezuela, Colombia and Chile, according to data compiled by Bloomberg...

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