The United States Justice Department confirmed this today Judgment against Argentina for the expropriation of YPF, forcing the state to pay millionaire compensation to the Burford investment fund. With the decision of New York judge Loretta Preska, Argentina has to pay 16,099 million dollars due to the nationalization promoted by the current Vice President Cristina Fernández de Kirchner and the then Minister of Economy and current Governor of the Province of Buenos Aires, Axel Kicillof.
Trial by YPF: What are the basis of the verdict and what will the government’s appeal be?
After the court decision was announced by the Expropriation of 51% of the oil company’s shares in April 2012 accused the former president Geierfonds of “bribing” judges to rule in her favor.
The national government estimated that the amount to be paid in compensation would not exceed $5 billion. To achieve this value, it was expected that a retroactive annual interest rate of 0% would be applied and that Judge Preska would adopt May 7, 2012 as the date of expropriation.
For its part, the fund concerned assumed that the expropriation had taken place on April 16 Kicillof was appointed the company’s auditor, ousting the private shareholders. Furthermore, he sought recognition retroactive rate of 8% per year.
The judge in charge of the case approved Burford’s two requests, which together amounted to more than 16,000 million dollars, the maximum possible penalty for Argentina. If a 0% tax rate had been applied, as expected by the national government, the compensation should have been only $8.3 billion.
“The Republic respectfully disagrees with the accuracy of these damage figures and also does not agree with the liability provisions. of the Court and reserves all rights of appeal,” clarified the defense of the Argentine State, responsible for the law firm Sullivan & Cromwell, in a letter to Judge Preska.