Argentine government to intervine in attempt to help grain company Vicentin

The president of Argentina, Alberto Fernandez, signed a decree that will allow for government intervention in the grain trade of Vicentin during the next 60 days. The company is one of the largest in the country and a leader in soy oil shipments. It applied for judicial recovery on February 10 this year.

“It is a strategic decision for the national economy,” wrote the president on his official Twitter. “I want to give peace of mind to all the company’s employees, who will continue in their jobs. And also to the 2,600 producers, who can count on the company to sell their grain”.  According to Fernandéz, a plan for a project will be sent to the Argentine Congress for the expropriation of the company, which was on its way to bankruptcy.

The Argentine president also informed that all the company’s assets will be part of a trust fund that will be managed by YPF Agro. “Argentines need to be very happy because we are taking a step towards food sovereignty,” said Fernández. The economist Gabriel Delgado will intervene during this process and will be in charge of managing the company.

Vicentin is an important part of the country’s grain and derivatives export business, which makes about US$20 billion a year. The company has a joint venture with Glencore called Renova, which has a large soy processing unit located in the Province of Santa Fé. According to Fernández, he did not consult Glencore before deciding to intervene in Vicentin.

Source: Valor Econômico

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