IMF censures Argentina; ‘remedial measures’ expected by September
Argentina became the first country censured by the International Monetary Fund for not sharing accurate data on inflation and economic growth under a procedure that can end in expulsion. The declaration of censure was adopted Friday by the IMF 24-member board of directors and even if it doesn’t have immediate effects, the decision takes the country a step closer to sanctions that include barred access to IMF loans.
The IMF executive board found that Argentina’s progress in implementing so-called remedial measures “has not been sufficient,” according to the statement. The board called on Argentina to “address the inaccuracy” of economic data no later than Sept. 29, 2013. Managing Director Christine Lagarde is required to report to the board on Argentina’s progress by November 13.
The censure followed several attempts to obtain from Argentina information deemed good enough by the IMF to perform economic surveillance. 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.
“The IMF Executive Board found that Argentina’s progress in implementing the remedial measures since the September 17, 2012 Board meeting has not been sufficient. As a result, the Fund has issued a declaration of censure against Argentina in connection with its breach of obligation to the Fund under the Articles of Agreement.
“The Board called on Argentina to adopt the remedial measures to address the inaccuracy of CPI-GBA and GDP data without further delay, and in any event, no later than September 29, 2013. The measures applicable to the CPI-GBA and GDP aim at aligning these indicators with the international statistical understandings and guidelines that ensure accurate measurement.
“The Managing Director is required to report to the Executive Board by November 13, 2013 on the status of Argentina’s implementation of the above remedial measures. At that time, the Executive Board will again review this issue and Argentina’s response in line with IMF procedures.
“The Fund stands ready to continue its dialogue with the Argentine authorities to improve the quality of the official CPI-GBA and GDP data, and, more generally, to strengthen the relationship between Argentina and the Fund”, concludes the communiqué released on Friday.
In 2007 then President Nestor Kirchner replaced senior professional staff at Argentina’s stats office, Indec. While private forecasters estimate that inflation accelerated in 2012 to 25.6%, the government’s Indec said consumer prices rose 10.8%. Private forecasters aren’t identified because they risk being fined by the government for releasing calculations that differ from official data.
According to the fund, Czechoslovakia is the only country ever ousted from the IMF for breaching the same rule, while Cuba withdrew in 1964. The procedure that has censure as a prior step didn’t exist then.
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This will play into the CFK victimhood mantra and it is the average Argentinean that pays.
The next G20 summit is in Russia in early September. I wonder if they will politely sideline Argentina?
I somehow doubt that Argentina will be at the G20 summit in Australia next year.
My money is on Colombia taking her place.
I am convinced that the are afraid of the consequences of their decisions, frankly it astounds me.
Agreeing to follow IMF demands would not only very damaging politically it would also force up payments on index linked bonds. The only way to pay would be “printing” forcing up inflation even more. It may also lead to a new round of litigation based on the fact they have been defrauding the bondholders for a number of years.
So she can abandon the IMF and play the victim card or she can admit she's been lying and suffer the consequences. On past form it's pretty obvious what choice she will make.
CFKs strategy seems to be to kick things down the road as much as possible. I'd be stunned if she tried to stand for president again as this will all come home to roost before the end of the next presidency.
Her best bet is to kick as much down the road past the end of this one and then blame it all on the new incumbent.......unless there's something in the background so dire that she needs to retain the presidency to keep it quiet.
It's clearly more than enough to get her to put up some smokescreen about the Falklands though.
That's the point, there are no repercussions. Well at a good guess, at least not until. September 2014 0r even in to 2015?
It's like playing a footie match with a Ref that keeps saying. “Do that again and I'll send you off.”
The more he says it. the more you know he's not going to do it.
Sorry about the anology, what with the so called red card and all.
This is serious business.
Argentina is on it's way out of the Worlds financial market.
Hahahaha. Bubye.
UN your next.
As of tomorrrow you are responsibble for your own NYPD parking tickets.
Please, please, please... Expulse Argentina from IMF right now Argentina will save 4bn dollars that only serves to fed these good for nothing pseudo economists.
Then lets get out of the EU too...
Oh! Wait a minute argies! none want to end a pariah am I right?
So forget the last statement because only Brits will be in that list.
Viva Pinochio
They should replace Argentina with Chile for the G20. Chile's awesome. I'm not really such a fan of Colombia, so many hookers and cocaine, poverty, and filth. Not that the whole country is like that......but a lot of it is. Chile's a jewel though!
The Argentines are struggling. Their commenters are struggling. Their politicians are struggling.
... and this Ferkshow has only just started.
1925 Argentina richest country in South America,2025? poorest country in South America?
What happened?devastating natural disasters? foreign wars that depleted the treasury? NO! all caused by idiotic divisive politics,, coups ,etc.
Have you ever noticed how every one calls themselves a Peronist? from the rabid right to the loony left,
Argentina needs to rid itself of a poison obsession with a corrupt dictator and his inept wife. GROW UP!!
“They should replace Argentina with Chile for the G20”
And who cares? what G20 is useful for? absolutely nothing just another group for photo opo. that's all.
BTW Chile? there are so may countries before Chile can fit into it.
Just another Argentine financial catastrophe. This is Argentina being Argentina and we are just witnessing another event like we've seen many times before.
Country sits on a mountain of valuable resources, is financially managed in the most idiotic fashion, collapses and the poor souls who know no better blame it on external bodies. It seems to be in the Argentine psyche to never accept responsibility for its own mistakes which is also and ironically why it continues to repeat them. It's the nasty westerners or the IMF or **insert country or international body**
For one of the best educated SA countries there sure are a lot of dumbo's in power and if this forum is anything to go by, civilians too.
Chile or Singapore in the G20 next, and take out the trash.
@12 You know what happens to “customers” that don't pay their bill? They get duffed up!
@14 Can't resolve it tomorrow morning. It's Sunday. But you can deliver your letter of resignation tomorrow. To take effect on Monday morning.
@19 Yeah? But we like Chile. And we think it'll be fun if you get to watch your next-door neighbour trotting off to G20 meetings where you can't go. It'll be in all the papers. “Chile welcomed to G20”. “Chile invaluable, says G20”. “G20 contrasts Chile with 'useless' Argentina”.
The Rgs think not being in the IMF won't hurt them but there goes:
Jefe and Jefa Payments
The Child Allowance
Environmental Clean up ( Riachuelo)
Healthcare funding ( hospital funding)
Loans for:
Sanitation
Water
Dams
Roads
Bridges
It is U$Billions a year that CFK is going to have to try to make up somewhere
and it's U$ not Peso
She can't just print more
The IMF are taking the right course and it cannot be taken lightly because the consequences are huge. Something many Argentines cannot grasp as they tend to be very inward looking.
The IMF is showing concern and pity for the Argentine people because they know it will be the general population - the poor and lower middle classes - that will truly suffer. Do you think for moment CFKC and the whole Kirchner oligarchy will suffer? Not one bit because they have the money stashed and the bolt-hole furnished and ready.
I doubt Argentina will be able to remain in the G20 or any of the organisations so loved by CFKC and Timerman. They claim to not care but they really do. Is there anything CFKC won't turn up to if she can get her photograph taken with powerful leaders?
We will do it all “legally” and “by the books” but it will happen slowly buy surely.
Is the timing coincidental with an election year?Hmmm maybe.
It is estimated Argentina has underpaid (defaulted) on their Inflation linked bonds by U$20B
Argentina is bankrupt they just don't know it yet.
I am not sure that BCRA could be considered a separate entity any longer. Using the funds to pay bills is a no-no and CFK has done this for years. Elliott lost a case 2 yrs ago when they asked Griesa to embargo the funds in NYC but now there is plenty of evidence to show that BCRA acts under the direction of CFK. We'll see where this comes out.
The funds are kept in Switzerland @ BIS, what is left of them. Since there has not been an audit in many years I think the $42B they claim to have in liquid funds is more like $7-10B. Who's to say with these liars.
They don't have near enough reserves to pay even what immediately owe in judgments from ICSID which I think is U$65B, Paris Club U$9B way way way overdue and these countries aren't going to wait forever.
CFK will never work this out. The people will suffer hyperinflation, huge devaluation, depression and high unemployment probably for a generation.
It is a mess.
So dependent on financial markets it has not taken a cent from bond auctions in years, took one 5 billion dollar loan to venezuela (really think that's enough for 10 years, when AR alone cost 2 billion), and no IMF loans at all.
I'd say that's pretty self-sufficient.
It's a pitty you don't got a clue, go back to Whitegreckiwka~~!! My Britain is fuck all now!
lol
just 2 lenders in the many loan programs you have ongoing:
maps.worldbank.org/lac/argentina
www.iadb.org/en/projects/advanced-project-search,1301.html?Country=AR
U$Billions yearly
TTT, the grown-ups are discussing the article, your contribution of 'but look over there' adds nothing useful.
I can smell the desperation from here
Too many sticky fingers in the WB and IDB projects. Hard to keep up their lifestyle without the stolen millions (billions) the politicians are stealing from the people.
BTW did you see the head of AFIP makes P$1,200,000 a year salary!! OMG it is scandalous!!
My friends are sick to death of CFK and besides themselves knowing another major crash is just around the corner.
So that 800 peso meal you were talking about was that for 4 people?
I've told him don't worry about it but he does it anyway.
The fact is, resident greaseball came on to announce a new index, but there is no way that in 6 months they are going to go from 'utter lies' to 'actual facts' given that INDEC will still be producing the statistics and anyone who goes against these statistics will still be fined for 'stating the truth'. It'll be the same story in 6 months, with more ranting from greaseball in residence.
Now I don't claim to be an expert on women, but can someone tell me why British women would like these sort of men with really greasy lacklustre mullets? I think they must find the greasiness and 1980's hair exotic or something.
I find it puzzling.
When I first went to Argentina I think I must have been taken in by the hype and wondered what had become of the 'famed' beautiful men. The majority were short with pot-bellies. I am not saying there were no attractive men but no more than most countries.
This rushed-out statement about a 'new' index tells me Argentina were not expecting the sanction.
I think they USED to have more pretty people, when extended breastfeeding was more common because it has a HUGE influence on facial.porportions-plus the factor of them being 'white' surrounded by mixed & indigenous countries. They have an exaggerated tendency to see white as attractive.
Why isn't he getting pilloried?
if you cannot afford argentina food prices ....don't leave your USA!
Stay in the USA where you can afford the cheapest McDonald food!..
and buy cheap shoes made in China!...uuuuuuujajaja!
In the decade of the 90's, we were the best example for the i. m. f., however, there were much more unemploit people than now, the contracts for working were very precarious, and most our national patrimony was being sold, with that so called privatizations.
If there is an institution that we don't need, in order to continue improving the situations of millions of compatriots who still are poor, is the i. m. f., since we got rid of it, we could continue having a huge economic expansion, which created millions of jobs, beside, we could improve the social situation of millions of compatriots who were going through a vulnerable situation, so, we don't need in absolut any of the i. m. f's loans, there are others sources where we can go to ask for loans.
There are a lot of people in this forum, and among the irrelevant politicians that we have in the different politic parties, who criticise the inflation level, however, none of them say anything about what they would do, in order to solve the problem, if they were chose to rule arg.
Most the, just emphasize the lack of credibility of the indec, and don't say anything about the huge oligopolic concentration that we have in the most important sectors of the economy (food and metal mechanic), those sectors, don't make enough inverstments, and increase the prices of the products. On the other hand, just the public banks give economic support to the enterpices for inverstments, which is not enough, and most private banks, just give economic support for the adquisition of goods, but not for inverstments. All this situation is starting to change, with the reform of the charter of the central bank.
Accept it or not, the problem of inflation is much more complicated than the usuall analysis that you and the irrelevant politician use to do.
damn, I was expecting an article on Timerman using an elastic ruler!!
however, isnt argentina already barred from imf loans through US/UK blocks?
A British female discussing beauty standards she expects on foreign men.
A yanki male from New York worried about storms and climate change.
You would think this is some comedy sketch where the most obvious topics NOT to be discussed by a certain group are used for parody and laugh... but in this case, they were serious.
So...
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!
@52 Just so you know, claiming that KFC has any kind of legal training is generally seen to be a joke. There is no proof in existence that suggests she ever completed a law degree nor that she ever practised by passing any kind of bar exam. The $520mil in an offshore personal wealth fund that she claims was gathered from a lengthy and successful law career was actually what Nestor and She took from the original sale of YPF and was supposed to go to the state of Santa Cruz.
Having her say she was a successful lawyer is just perception management on her behalf.
Just so you know.
No black out in UK and US are you kidding?
New your have no electricity in some parts and are rationalising fuel due to the last storm.
UK will suffer major blackout in near future...
www.youtube.com/watch?v=k7xODfTFJHM
Have you bough candles?
As inflation goes to 2.9%/month
As the peso goes to 8/1
40,000 construction jobs lost last year
Construction activiy lowest since the last crash
Real Estate market dead stopped
Soy/corn withering in the bone dry fields
Car Mfg falling
Taxes up
Utilities up
Transprotaion up
Blackouts every 3 days lasting multiple days
Garbage strewn streets
Yeah Dany it all is going swimmingly!!
You have to pay Captain Poppy restaurant expenses of $800 pesos!
Poor Captain Poppy!
No money No class!
what are you talking about?
if you don't like the argies...that is your choice...do something else instead of wasting your time!
you are unfortunately quite right.
The Argentine commenters have either zilch knowledge of national and international economy or they just pretend that the coming disaster won't happen because they don't want it to happen.
Reading their idiotic comments about “doesn't matter” or - like TobiasWithTheBigNostrils - thinking or pretending that Argentina can make it in isolation makes me sick.
I have good friends in Argentina and many of them will suffer severely from the emotional actions of her erratic government.
There is so much incomplete construction, like a highway that was started and never finished. I asked my father in law about it, he said it's been there so long he has no idea what it was for. Talk to the old timers in BsAs and they long for the military versus asslips. Argentina really reminds me of the early 1900's, they are so far behind in everything and until the corruption is beheaded and a competent, visionary elected to the national government, Argentina will be just another Venezuela, a country rich and mismanaged into a poverty. And as I said before, no one I came across supports asslips way of doing things, only the mindless la camporas that blog here. I thought it was funny that many think Aerolinas is for la campora and run by them, maybe that is why they are redlining. But I also retorted that unless they make a statement in the midterm elections, asslips will think she is being empowered.
If nothing else, they still put on a great Tango show. I had heard that Ford is putting off that big expansion, I saw a Ford plant just outside of the city, not sure if it's the same one.
HAHAHAHAHAHAHAHAHAHAHAHAAHAHAHAHAAHAHAHAH!!!!
HAHAHAHAHAHAAHAHAHAHAHAHAHAHAHAHAHAHAHA!!
Yankee gas was about 8.25 pesos per liter......31.97 pesos per gallon, at the official exchange that's 6.41 per gallon.....and that is expected to increase according to c5n....the station that spews all of kirchner's vomit.
Do you mean the porteños or “Porteros”?
What I would go to NY? to learn Spanglish and dance salsa?
A week is too much and what about months in New york?
100,000 N.Y. Homes, Businesses Face Months Without Power
www.bloomberg.com/news/2012-11-10/100-000-n-y-homes-businesses-face-months-without-power.html
Doesn't look any good for a super power without power. Isn't it?
Buenos Aires had in the former and current years plenty of storms or hurracanes like you want to call with wind speed ranging from 181 to 260km per hour similar to Sandy and?
last week was another storm and?
Do you only believe that storms only affects NY?
Now the storm (sandy) can be the excuse but was 4 months ago mate.
4 months how super power US cannot fix the problem in 4 months?
And for your knowledge in US had a blackout for the Guinness records of 55 millions people.
And the idiots here say that in UK were o are not blackout what about in the 2009 where more that 400.000 persons were without power just in London?
1- Storms called hurricanes kill thousands of people in th world, Sandy destroyed 1000s of houses, that is what 170km per hour winds do fool
2- I never said the USA never had a blackout, tell that to the sperm recpticle tyou bought as a wife.
3- Cleaning up Sandy is like cleaning up the Twin Towers. Now stay on track asswiper, this is about Rgentina lying can getting censured.
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
We can finally be sure that Argentina will not be dealing with leaches and we can sleep better knowing that only Argentines will ultimately be responsible for our future. Not IMF or some over seas vulture founds.
BTW storm, hurracane or whatever 260 km wind speed is more destructive than 170 km.
May be if you try to make your houses on solid concrete instead of that crap prefabricada shantytown style in wood, you will avoid such disasters.
Can you see how buildings in concrete on the back stay there?
www.youtube.com/watch?v=yOla5Yq4FEs
www.youtube.com/watch?v=RbMX2A545Wo
Oh!
Wait a minute you cannot afford it so you keep using wood because people in shantytowns because are cheaper.
BTW you live in a house prefabricated made of wood shantytown style?
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