In addition, if the Government manages to access the directory of companies, you will have access to strategic information of them. Going to an extreme situation, this would make espionage within companies to identify strategies not desired by the Government. This what I mention recalling those months (not very far), in which eager to Government by controlling prices, had tried to obtain information about the structure of costs of certain companies in order to identify whether they were applying an excessive margin. I believe that the influence of the Government in firms that could access through the nationalization of the AFJP system, is negative to them when seeking to attract capital to finance their investments. The prospects for evolution in the value of its shares will also be affected.
These companies lost attraction to the threat posed to its growth, the presence of a myopic State. Perhaps also, the decision of the Argentine Government to assert its stock holdings and search enter directories of companies, may affect the volume of foreign direct investment (FDI) that leads toward the Argentina (which by the way, is very low in relation to other countries of the region). This possibility is specific whereas the foreign investor can feel the fear that Argentina is imitating Chavez and is following a similar estatizadora strategy. Beyond speculation about the possible consequences of the accession of the Argentine State on the boards of several companies, the Anses received the AFJP control agency shares of 40 companies and 10 of them owns more than 20% of the equity capital. The Government has already appointed their representatives in Natural Gas as well as Gas Cuyana (MERV: GBAN), conveyor gas South (MERV:TGSU2, NYSE:TGS) and Endesa Costanera (MERV:ele).
Not satisfied with this, the Government continues with this strategy and the next goal was yesterday, Siderar (MERV: once upon). In the company Siderurgica group Techint, the Argentine Government Siderar would reach a 25,97% of equity stake. The company wants to avoid that the Argentine Government to make use of cumulative voting (which could not be exercised by the AFJP among them) to appoint a representative within the company’s Board. Although this situation is causing resistance in several of the companies, not all come with bad eyes and to a representative of the Government one of the armchairs of the directory. Such is the case of the firm Consultatio, company dedicated to real estate and main shareholder of Nordelta (the first urban complex built in Argentina under the concept of city people) and financial activities. It is that having the Government as a partner in the business can be more than beneficial. Of course that this is not the case for the majority of companies. The nationalization of the AFJP has given the Argentine Government not only fresh funds to address this adverse international context, but also the possibility of forming part of decision making in companies considered strategic. As all decisions that the Argentine Government has been taking, it is true that this represent short-term benefits, but it is also true that entails large costs difficult to repair.
In the Venezuelan case, the deeper effect will be in the real economy, as a result of the fall of the oil prices. In the opinion of the expert, in 2009 the Venezuelan economy does not collapse, but finances will not be handled with the same criteria for the past four years. It is estimated that the Government, as it has announced, will be more selective with public spending e, could even see the need to devalue. A devaluation that we believe can give in the coming year and that will certainly cause serious problems, especially for producers. Although consumers will not escape them. Insists Oliveros to point out, that in times of crisis like this, the costs which are usually trimmed are the of transfers to governorates, mayors and decentralized institutions and infrastructure. He ruled out a reduction in public spending. Impact gives us in his writing Cecilia Pena, faced with a scenario of devaluation, calculated by Onuva in Bs.F 2.90 per dollar, the Government may have more bolivars, to change their income in dollars, but also almost all the products infringing because one way or another everything that is consumed in the country depends on imports.