Argentina's Ambassador to Spain: “the 1995 paradise is over”

Argentina's Ambassador to Spain Abel Posse claimed Thursday "a greater understanding" from Spanish businessmen having interests in Argentina regarding their claims of rates hikes.

Posse stated "Spain needs to have a better understanding of Argentina's situation as it isn't the same as the one in the 90's. The 1995 paradise is over."

The government "is making a noticeable effort" to achieve a judicial stability, reported the Argentine official, by giving the example of the renewal of the Supreme Court Justices.

However, he explained that the government's "priority" is to solve social problems.

Spanish companies operating privatized Argentina's utility firms -power, gas, water and telecommunications- have been claiming a rate adjustment similar to the peso devaluation since the beginning of 2002 of 65 per cent as a condition to continue with their investments.

The government proposed to negotiate with companies taking into account each particular case, and analyze whether they have complied with the concession, particularly with the investments then promised.