MercoPress. South Atlantic News Agency

IMF says YPF dispute is a “bilateral affair” and decision of “a sovereign nation”

Nicolas Eyzaguirre: “we want nationalization in a context of agreement between both nations”

Argentina managed a first point in the diplomatic dispute with Spain over the nationalization of YPF when the IMF decided to call the conflict a “bilateral affair” and “a decision of a sovereign nation”.

The statements belong to IMF Latin America and Caribbean Department Director Nicolas Eyzaguirre during a news briefing on Friday at the IMF, World Bank Spring 2012 meetings in Washington.

Eyzaguirre has had no trouble in criticizing several decisions made by the Kirchner couple’s administrations before particularly after both governments (presidents Nestor and Cristina Kirchner) refused to accept IMF missions.

”What we expect is the nationalization to be given in a context of agreement between both nations” the Chilean economist added following on several direct talks held with Argentine officials, including the Economy Minister Hernán Lorenzino and the Finance Secretary Adrián Cosentino.

Both officials managed to keep the nationalization of YPF and Argentina’s relations with the IMF as separate matters despite the close relationship Spanish president Mariano Rajoy has with IMF Managing Director Christine Lagarde.

This also despite some criticisms leaked and advisor in the IMF Research Department, Thomas Helbling who stated that “in general state interventions make the investment environment less predictable. Companies’ expropriations do not favour investments for a long-term growth.”

Eyzaguirre’s conciliatory statements were received by the Argentine delegation as a true blessing although he reiterated the need of improving the inflation measurement techniques, INDEC (Stats office) credibility, and obviously, the need to disclose public accounts for a mission to be sent to the country to discuss the Article IV of the IMF statute.