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Old 26th Aug 2007, 04:06
  #48 (permalink)  
D.Lamination
 
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A good example of what is called Sovereign Risk: i.e. the risk that the state will take some action that will severely affect your business or confiscate your assests.
A high level of Sovereign Risk is why you might not choose to invest in say, Venezuela - Hugo Chavez might nationalise your business, or why you might not invest in Nigeria because the corrupt local mayor runs you out of town and steals your business while the police do nothing.
Now it looks like Australia has joined these ranks in a slightly different way - bureaucratic fiat that destroys your business or your wealth. Is any Conquest less safe this week than last week? Has the state of manufacture withdrawn it's type certificate? Have there been any incidents that justify instant grounding with no warning?
Try getting finance to buy a second hand GA type in future - The lenders who will take a bath on repossessed scrap metal (formerly known as the C441) will now be looking at "sovereign risk" for aircraft finance in this country so will the banks if trying to secure a loan for something else with an aircraft asset.
Minister Vaile: your "CASA" is an out of control bureaucratic monster - and all this from a so called pro- business government.
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