Tuesday, December 18th 2012 - 03:56 UTC

IMF board to consider Argentina’s stats case at the end of January

The board of directors of the International Monetary Fund will again meet at the end of January to debate Argentina’s improvement in the quality of its official economic index, IMF spokesman announced on Monday.

Lagarde sent a report on Argentina’s case to the IMF board

The IMF Managing Director, Christine Lagarde sent a report on Monday stating Argentina's answer over the IMF concerns about its inflation and economy growth data, which are questioned by multilateral and private agencies.

Lagarde's report was not released, and there were no comments about it at the IMF, the Director of the External Relations Department, Gerry Rice, stated in a communiqué.

“I expect this report will be given due consideration by the Board sometime in late January’,” Gerry Rice, the director of the IMF external relations, said in an emailed statement. “The fund has no further comment on the report and its contents at this time.”

The head of the Fund could recommend the directors' board to issue a “censorship declaration” against Argentina due to the lack of improvement in its indexes. The board could accept this petition, or decide to grant time to Argentina to comply with the international criteria in its indexes.

Anyhow Argentina could be on track to be the first country ever censured by the IMF for not sharing accurate data about inflation and economic growth under a procedure that can end in expulsion from the IMF.

The board in September called on the government to implement remedial measures “without delay” and asked Managing Director Lagarde to inform directors on progress by Monday 17 December.

President Cristina Fernandez has denied any wrongdoing even as the government’s official figures have been disputed by the IMF, economists and politicians since 2007.
 

That’s when her late husband and former President Nestor Kirchner replaced senior staff at the statistics institute, known as Indec. Since then, Argentina has reported average inflation of 8.8% a year, versus a 23% estimate by private economists.

The official inflation rate of 10.6% in November, less than half the private estimates, has enabled Argentina to save about 6.8 billion dollars since 2007 on debt payments.

The IMF announcement in practical terms gives Argentina an additional couple of months to address the issue.
 

38 comments Feed

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1 Anglotino (#) Dec 18th, 2012 - 04:48 am Report abuse
$6.8 billion!

Now it all makes sense.

Rob future growth prospects by destroying investment in your economy all to save a few dollars on debt.

The economy could have easily made that $6.8 billion up in future growth... compounded.

It's like not eating enough to pay off your mortgage and then sitting there contently in your house once you own it outright, but unemployed because you are too sickly to work.

Pyrrhic victory to say the least.
2 Stevie (#) Dec 18th, 2012 - 08:12 am Report abuse
Well, if Argentina doesn't pay, you complain. Of she does pay, you complain. Maybe it's not Argentina being the problem here.
3 War Monkey (#) Dec 18th, 2012 - 08:20 am Report abuse
No you're right it isn't Argentina. It is never Argentina. It is everybody else. We keep forgetting that Argentina is a victim nation stood against the world.
4 Stevie (#) Dec 18th, 2012 - 08:34 am Report abuse
I'm sure Argentina is to blame for many things, but some people here are just in the business of complaining. They have a go at Argentina for not fulfilling their obligation, and rightly so, but when Argentina does pay and they still keep complaining, one wonders if they aren't just complaining for the sake of complaining. Little to do with Argentina.
5 Shed-time (#) Dec 18th, 2012 - 08:50 am Report abuse
Argentina is the national version of a psychotic who cannot stop lying and goes around smashing people in the face and stealing their wallet, then when they get caught by the police they blame you for running into their fist and handing over all your cash.

I'm really confused why the IMF is dragging their heels on this one, they just look like impotent clowns.
6 txiki (#) Dec 18th, 2012 - 10:20 am Report abuse
It will all end in tears for Argentina. If it does not comply with the IMF's requirements, then its place at the G20 is in doubt as one of the criteria for being a member is meeting the requirements of financial reporting of the IMF.

That aside, it's not really in the top 20 nations anymore in terms of GDP - and will continue to slide down the table - everyone knows Spain should have its place!
7 ptolemy (#) Dec 18th, 2012 - 11:40 am Report abuse
By the time the IMF reviews the document I doubt it will make much difference in anything. (Besides, all Argentina goes on vacation Jan.-Feb. and nothing is done here.) Argentina will claim the figures are not current, etc. and will be redone again. It makes me wonder why the big hubbub about the index figures when there appears to be no rush to review them.
8 bushpilot (#) Dec 18th, 2012 - 11:44 am Report abuse
“I expect this report will be given due consideration by the Board sometime in late January’,”

Oh, I see,

In late January this time, it will be “considered”.

I seem to remember that in September the IMF was giving them to December & then it was curtains for Argentina.

The IMF isn't going to do a thing about this but spew verbage, nothing else.

“This is the last warning” Yeah, yeah, yeah.

Ladies and Gents, this is a non-story.
9 War Monkey (#) Dec 18th, 2012 - 11:57 am Report abuse
I don't know. Either Argentina will somehow diffuse the time bomb it is sitting on or they will let it run its course. Maybe the IMF think that they don't really need to do anything. If Argentina carries on this path then economic self destruction is assured. Maybe the IMF don't want the political fallout that would come if they pushed Argentina out of the window. Far better to let them jump. At least this way Argentina has a chance to save itself but I can't see it happening.
10 reality check (#) Dec 18th, 2012 - 12:04 pm Report abuse
The IMF should have kept quite, if you threaten to censure a behaviour and do not follow it up, all you do is encourage it.

101 Parenting skills!!!!!!!!!!
11 Shed-time (#) Dec 18th, 2012 - 12:20 pm Report abuse
Here are some garrulous impotent clowns... here are some members of the IMF board...

spot the difference.
12 andy65 (#) Dec 18th, 2012 - 12:46 pm Report abuse
As I always say

ARGENTINA ALWAYS THE VICTIM

Thats simply how they see themself
13 yankeeboy (#) Dec 18th, 2012 - 12:56 pm Report abuse
The IMF schedule is on time. Argentina was supposed to fix their official numbers this month. They didn't so the IMF exec board will take action at the next board meeting.
It is all done by the book
It will take another 12 months for them to get removed if they don't eventually comply.
14 Shed-time (#) Dec 18th, 2012 - 02:39 pm Report abuse
@13 so it takes a whole year to get an economic basket-case off the IMF books? I guess it's better than the 10 years it takes to get one ejected from the G20.
15 yankeeboy (#) Dec 18th, 2012 - 02:45 pm Report abuse
There are a number of deadlines to allow the nation to come into compliance before they are expelled:
www.imf.org/external/pubs/ft/sd/index.asp?decision=13183-(04/10)
16 Shed-time (#) Dec 18th, 2012 - 02:52 pm Report abuse
@15 Sure, but you would have thought an 'overt refusal to comply' would be fast-tracked somewhat. Clearly they have to sit on their hands for 18 months while the childlike-empress in the emerald castle shows them the finger.

This does not make sense.
17 yankeeboy (#) Dec 18th, 2012 - 03:04 pm Report abuse
As I say all the time,
Time is on my side
Everyday the headlines get worse and worse for Argentina, last year business people still thought Argentina had a chance to survive and possibly thrive but not one of them does now. Every single article is about an imminent implosion.

It can't come soon enough for me
18 eteega (#) Dec 18th, 2012 - 03:09 pm Report abuse
The boot:

www.thetimes.co.uk/tto/business/economics/article3633800.ece
19 Stevie (#) Dec 18th, 2012 - 03:11 pm Report abuse
yankeeboy

ARA Libertad set to return to Argentina.
IMF postponing their threats.
US lawyer postponing decisions on hedge funds case.
Clarin getting dismembered.

“Everyday the headlines get worse and worse for Argentina”

Well, from an Argentinian point of view, you couldn't be more wrong.
20 Shed-time (#) Dec 18th, 2012 - 03:18 pm Report abuse
@19 you didn't mention rampant inflation and exports going into freefall... and the creation of an authoritarian state. I guess you wanted to pick and choose facts to construct some kind of face-saving fallacy though.

If you include those, then the outlook is bleaker than a house in a Charles dickens novel.
21 Stevie (#) Dec 18th, 2012 - 03:20 pm Report abuse
Shed-time
I think yankeeboy was talking headlines, not homemade “facts” posted in Mercopress.
22 yankeeboy (#) Dec 18th, 2012 - 03:21 pm Report abuse
ARA Libertad set to return to Argentina. An Int'l Embarrassment not a win for Argentina and I think it accomplished exactly what Singer wanted. Seriously, what was he going to do with it anyway?

IMF postponing their threats. Um no they aren't obviously you didn't read my last post they're still on track.

US lawyer postponing decisions on hedge funds case. Huh?

Clarin getting dismembered. If you think that is good you are much more stupid that I thought you were and that is saying quite a lot.

Just One of today's headlines:
nationalinterest.org/commentary/argentina-will-implode-again-7858
23 Shed-time (#) Dec 18th, 2012 - 03:26 pm Report abuse
@21 I was talking about objective facts... in argentina these things are elusive, and often hunted or shot, but where I live they are living free and live happily.

Don't blame me that your authoritarian government is aligned to a militant terrorist organisation that brainwashes school-kids and criminals into doing it's wet work.

That's not my fault. That's yours.
24 Stevie (#) Dec 18th, 2012 - 03:30 pm Report abuse
yankeeboy
If NI is your source of information, no wonder your posts are slightly biased.

www.cbsnews.com/8301-215_162-7121029.html

You see, I too can come up with silly apocalypse theories backed by different medias. Does it make it a fact?
25 Shed-time (#) Dec 18th, 2012 - 03:49 pm Report abuse
@24 you don't get to decided what facts are!! Only Maximo and the argentine soviet praesidium get to decide what your facts are!!

Now get back to stroking your mullet.
26 redpoll (#) Dec 18th, 2012 - 04:37 pm Report abuse
That Lagarde is a tough cookie.Lets see which Christine wins but my money is on the French one by a noquaut
27 ProRG_American (#) Dec 18th, 2012 - 04:57 pm Report abuse
Ho Wow! Scary! The Argentines must be trembling over this.
28 Ayayay (#) Dec 18th, 2012 - 04:58 pm Report abuse
The int'l consensus is that Singapore will join the G-20 (they ARE 1 of the top 20 economies). If the CITIES of LA & NY were countries (their metropolitan area), they'd both separately be in the G-20.
29 yankeeboy (#) Dec 18th, 2012 - 05:19 pm Report abuse
27. I doubt CFK is bright enough to realize what being excluded from the World's financial markets means to the avg Rg or maybe she just doesn't care,
There is a very good chance GM, Ford and Fiat will leave rather quickly when they lose IMF membership.
I bet she is also wonder how to make up the IDB and WB loans. I don't think they can disburse after the 1st 6 month penalty, that's June/July 2013. Not so far away is it?
30 ChrisR (#) Dec 18th, 2012 - 05:50 pm Report abuse
AG is like a slow film of a deadly rail smash.

You know what is about to occur but are unable to do a damn thing to prevent the carnage from happening.

It is just a matter of time.
31 Yuleno (#) Dec 18th, 2012 - 06:07 pm Report abuse
Yankeeboy
Your posts are truly funny
1/time is on your side-you getting the Rolling Stones for Xmas
2/is it really what nml wanted or an admission you ran out of time
3/how bright is Christina compared to you.She has only a few years unlike you.
32 Shed-time (#) Dec 19th, 2012 - 09:01 am Report abuse
IMF takes 3 years to make a decision, based upon a bi-annual meeting where they have coffee and sit down to discuss 'being french' and 'how their farm gets millions in subsidies' for 12 hours, then they put all the important stuff into the next years meeting as Any Other Business.

This outlines the problem with having french people running anything. They simply never get anything done... ever.
33 Captain Poppy (#) Dec 19th, 2012 - 01:09 pm Report abuse
Has anyone noticed there were no trade balance reports released for November? 1.968 billion for Aug , 968 million Sept, 585 million Oct and nothing released for November. Can you say.....deficits?
34 yankeeboy (#) Dec 19th, 2012 - 01:11 pm Report abuse
32. The USA is the largest shareholder and we are pushing for censure and expulsion. I am sure you will see this get done by the book.
35 Conqueror (#) Dec 19th, 2012 - 02:05 pm Report abuse
@4 No. People complain because argieland thinks it makes the rules. It doesn't. It's a piss-ass little place that has little idea, as yet, what the world can do to it. The question is: will you people wake up in time? Here's a few clues for what could happen. First thing, expulsion from the G20. Then, expulsion from the IMF. IMF rules state that member states must not co-operate with non-members in practices that would be contrary to the purposes of the Fund. Argieland would have nowhere to go for money. It could easily lead to major cuts in both imports and exports. Good luck with North Korea, Andorra, Monaco, Liechtenstein, Nauru, Cook Islands, Niue, Vatican City, the only states that aren't members of the IMF.
@19 But will the little boat get across the big wide Atlantic? As pointed out, the IMF is simply following its procedures. US court following its procedures. Clarin appears to have more time than you think.
@27 They should be. This could easily spell T H E E N D for argieland. Going to ask the pope for help?
@34 Then the USA should push harder. Bring the whole rotten edifice down.
36 ChrisR (#) Dec 19th, 2012 - 03:38 pm Report abuse
@35

You have omitted the possible knock-on when Dead Man Walking (just got a ‘respiratory disease) coughs, it could spell the end for oil coming in from Venezuela, but there again they have YPF.

Ha, ha, ha.
37 Yuleno (#) Dec 19th, 2012 - 09:34 pm Report abuse
34# yankeeboy
Yes your sure it will be done.It just a matter of time.And that's all you have Yankeeboy.
38 British_Kirchnerist (#) Dec 24th, 2012 - 06:43 pm Report abuse
So much for 17D =)

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