Posted on 01/28/2014 6:49:21 PM PST by TigerLikesRooster
Orascom prevented to withdraw the asset from NK
VOA reported on 22nd that Egyptian mobile provider OrasCom which was prevented from remitting more than 4 hundred million dollars due to the restriction of North Korean regime. According to the audit report published by Deloitte, the Koryo Link which Orascom owns 75 percent stake included $422 million worth of cash balance in North Korea but “North Korea has implemented currency control restrictions and, in particular, rules surrounding the repatriation of dividends to foreign investors. Additionally, the local currency of North Korea is not tradable outside the country. Such restrictions limit the level of dividends that can be paid to the company from its North Korean operations,” which leaves the company unable to remit the fund back to Egypt. The report also mentioned that the total profit grew for 40 percent during January to September 2013 with the increase of subscribers. However, due to North Korean regime's policy, the company could not collect the assets back, which led the president of Orascom Naguib Sawiris decide not to expand any investment in North Korea until the dividend was received.
According to a North Korean defector who worked in the Party, Kim Jong-un often emphasized to learn from Ceausescu of Rumania who vitalized the economy by threatening and evacuating foreign companies with armed force to leave the country within 24 hours. "The foreign companies which consider to invest in North Korea should know that one day they might find themselves kicked out from the country with bare hands," he said, "many of South Korean and Chinese companies which had invested in specialized zone already called it off and closed business."
P!
Kaesong could get this treatment in a New York minute (if not hostage-taking situation and/or “disappearing” or having “traffic” or “swimming” accidents.
The way things are going, we may see it happen sooner than expected.
what moron decided to invest in NK??
Same ones that invest in China.
It seems to me that Kim is turning over every rock looking for cash. Does anyone have a reasonably accurate assessment of what the Nork financial position is?
NK regime uses carrot and stick to maintain loyalty of core elites. We know what their "stick" is, a sweeping brutal purge. The carrot is to shower underlings with cash and luxury goods. Now it is all "stick" and little carrot. This creates a real problem for Kim.
Thank you. I suspected the “flash projects” were cash drains (you and discussed this once before). I had read about the secret account of Jang as well. I had not thought about the Chinese locking up NK accounts. Good point.
Have to wonder if Kim is squirreling away funds in a Swiss account for the day when he has to abdicate and abscond. He might have to “book it” soon. Might be an expensive proposition since he’d have to have a private army to protect himself and to bankroll it/them. Just thinking out loud.
>>>According to a North Korean defector who worked in the Party, Kim Jong-un often emphasized to learn from Ceausescu of Rumania who vitalized the economy by threatening and evacuating foreign companies with armed force to leave the country within 24 hours. “The foreign companies which consider to invest in North Korea should know that one day they might find themselves kicked out from the country with bare hands,” he said, “many of South Korean and Chinese companies which had invested in specialized zone already called it off and closed business.”<<<
He certainly hasn’t learn Ceausescu history to the end.
Very interesting parallel.
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