May 23, 2013
IMF assures there is no nationalization 'trend' in the region
The International Monetary Fund (IMF) affirmed that it does not see a trend in South America toward state nationalization of private companies despite moves made by Bolivia and Argentina in recent weeks, a spokesman said today.
"It's a very diverse region and we would not call what we are seeing a trend," IMF spokesman Gerry Rice told reporters, responding to a question about Bolivia's decision this week to nationalize the local unit of Spain's Red Electrica.
Rice declined to comment on the Bolivian move, but repeated the IMF's position that "a predictable investment climate is key in all countries and in all regions."
He said it was important to remember that the South American region "has enjoyed high levels of FDI, foreign direct investment, in recent years."Argentina's Congress is about to approve the expropriation of YPF, and Bolivian President Evo Morales announced the nationalization of Spain's REE shares from the power transport company.