Energy crisis brings Argentina to verge of economic collapse

In the aftermath of Argentina’s Black Thursday, an analyst tells Interfax that an economic or energy-related crisis now looks unavoidable In the aftermath of Argentina’s Black Thursday, an analyst tells Interfax that an economic or energy-related crisis now looks unavoidable.
By Chris Noon 24 January 2014 0 6201
Empty YPF barrels in Tierra del Fuego. One economist said an energy crisis is unavoidable. (Interfax)

Mismanagement of Argentina’s energy industry and the resulting lack of alternatives to expensive LNG imports have helped to bring the country close to economic collapse.

Expensive LNG cargoes are draining the country’s foreign reserves, a problem exacerbated by the plummeting value of the Argentine peso versus the US dollar (see Sweltering Argentina seeks five more cargoes, 17 January 2014 and Latin America’s LNG bill to soar 60% in 2013, 18 December 2013).

The peso’s rapid drop in value on Thursday raised fears that Argentina is...

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