Tuesday, November 12th 2013 - 08:10 UTC

Lagarde praises Argentina's 'positive progress' in reforming economic data quality

Argentina has made “positive progress” in reforming the quality of its economic data, the head of the International Monetary Fund said on Sunday, adding that the IMF's board is set to review the country's moves in a few days.

“It's a matter that will be reviewed by the board in a few days' time and I would not want to prejudge what the outcome will be” said IMF chief

 The IMF, which requires accurate statistics to analyze the world's economies, censured Argentina in February over failing to improve the accuracy of its inflation and gross domestic product growth data and gave the country until Sept. 29 to take action.

Analysts have accused Argentina's government of underreporting inflation since early 2007 for political gain and to reduce payments on its inflation-indexed debt. Inflation has been around 25% for several years, according to private estimates, one of the highest rates in the world. The government says inflation is less than half that.

“We are in a process with Argentina at the moment of clarifying the numbers, establishing those reliable and shared numbers with the membership,” IMF Managing Director Christine Lagarde said in an interview with CNN.

“We are making positive progress but it's a matter that will be reviewed by the board in a few days' time and I would not want to prejudge what the outcome will be.”

If Argentina fails to make progress, the IMF board could choose to impose sanctions, barring Latin America's third-largest economy from voting on IMF policies and accessing financing.

The only country the IMF has forced to leave its ranks was the former Czechoslovakia, an action that occurred in 1954. Countries like Somalia and Zimbabwe have been sanctioned by the IMF, but mainly because of a failure to repay the fund.

Argentina's populist government, and many ordinary citizens, blames IMF policies for precipitating the country's devastating 2001-02 economic crisis.

Argentina has refused to participate in the IMF's annual economic assessment for the past seven years - though it is not unique in South America. Ecuador has shunned the assessments for the past five years, and Venezuela has not participated since 2004.

23 comments Feed

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1 trenchtoast (#) Nov 12th, 2013 - 08:19 am Report abuse
Lagarde praises Argentina for lying slightly less ?
2 willi1 (#) Nov 12th, 2013 - 08:47 am Report abuse
“We are making positive progress ... but... I would not want to prejudge what the outcome will be.”
what ever the outcome will be - even 10,5 % - would be “highly appreciated” by lagarde. she´s so in love with ck that she will accept the smallest progress and give one year more time for investigations.
3 toxictaxitrader2 (#) Nov 12th, 2013 - 08:56 am Report abuse
What chance the short changed inflation linked Bond holders will get their 6 years
interest back?
4 Conqueror (#) Nov 12th, 2013 - 11:39 am Report abuse
The important thing will be to see how the lying toe-rags of argieland are going to “revise” their data. Will “reported” inflation suddenly “jump” from 10.5% to 25%? Will the argies “explain” this by saying that the IMF “forced” them to use certain “discredited” methods? Truth is a “discredited” method. Let's move to results! If the IMF board doesn't like the latest version of argie lies, Lagarde should be sacked! Obviously, she's not only corrupt and crooked but ingenuous and stupid as well. Not really surprising, she is French! But what is really important is to watch how the argie population reacts to the news that inflation is more than twice what the government has been saying. Also, who the argie “government” blames. In a “proper” country, the government would admit that it had been telling Indec what to say for at least 6 years. If it goes that way, the argie government will “blame” Indec. Indec employees should be looking for new jobs. The Defence Ministry needs some good liars!
5 Britworker (#) Nov 12th, 2013 - 11:58 am Report abuse
That is exactly what I was thinking!
6 yankeeboy (#) Nov 12th, 2013 - 12:30 pm Report abuse
PoliSpeak, It all depends on if the USA wants to keep Arg in the club or not.
I don't think they do.
We shall see shortly.
7 Optimus_Princeps (#) Nov 12th, 2013 - 01:29 pm Report abuse
Lagarde is embarrassing herself, procrastinating, and showing her weakness. Where's the “positive progress”?

It's her precise attitude that allows the K's to continue their stupidity without obstruction.
8 andy65 (#) Nov 12th, 2013 - 01:35 pm Report abuse
Same old same old Argentina always the victim,my ass
9 Welsh Wizard (#) Nov 12th, 2013 - 01:45 pm Report abuse
“Gramercy Plan” has died...just as we expected it would. Why would Singer wait 10 years and then decide to go with a bond swap? Doesn't make any sense. He knows what the outcome of this is going to be...
10 yankeeboy (#) Nov 12th, 2013 - 02:05 pm Report abuse
9. You mean Singer didn't take Think's advice?
What a surprise!
I can't recall one post Think has made that a prediction has come to fruition.
Not one.
What a boob.

After a decade-long legal battle, Singer may be only months away from receiving full payment on the debt through U.S. courts, giving him no incentive to accept lesser terms in a settlement, according to Stuart Culverhouse, chief economist at Exotix. Singer’s disinterest in negotiating with owners of restructured debt led by Gramercy Funds Management LLC may halt a rally in the bonds as investors realize the legal claims against the country won’t be dropped, said Culverhouse.
11 Think (#) Nov 12th, 2013 - 04:44 pm Report abuse
(9) Welsh Wizard

You say...:
“Gramercy Plan” has died...“

Gramercy says...:
”The report of my death is an exaggeration”

Think agrees with Gramercy (and M.T: :-)))
12 Welsh Wizard (#) Nov 12th, 2013 - 05:14 pm Report abuse
Well, at present it has been rejected out of hand with no hint of room to negotiate. Are you saying that Gramercy are going to come back with an offer whereby they provide make whole payments. Very unlikely...

Interesting to find out your source for this, if any.
13 Think (#) Nov 12th, 2013 - 05:26 pm Report abuse
(12) Welsh Wizard
We shall have to wait and see.................................... won't we?
14 yankeeboy (#) Nov 12th, 2013 - 05:47 pm Report abuse
He has no source.
He is as dumb as a box of rocks and arrogant to boot.
15 Briton (#) Nov 12th, 2013 - 07:10 pm Report abuse
she loves her-she loves her not,

she loves her, she loves her not,

her clawling to Argentina is rather embarasing now..
16 St.John (#) Nov 12th, 2013 - 10:47 pm Report abuse
Same Lagarde?

IMF chief Christine Lagarde's home raided after claims she 'authorised £270m payout to convicted fraudster'www.dailymail.co.uk/news/article-2296383/IMF-chief-Christine-Lagardes-home-raided-claims-authorised-270m-payout-convicted-fraudster.html

Ms Lagarde and The Tribulations of A Corrupt French State Bank
17 CabezaDura (#) Nov 12th, 2013 - 11:36 pm Report abuse
I think Oppenhemer is correct in his column today.... Legarde is trying hard to recompose relations with Latam where the IMF has a very negative image...
O though inflation is much higher, everybody knows this by now….Why would she bounce on Argentina if the IMF is not granting any credit to it?? I just don’t understand you guys what do you want this woman to do??

18 St.John (#) Nov 13th, 2013 - 12:27 am Report abuse
Can't talk for others than myself.

I want Lagarde to demand that as per now, Argentina reports the true inflation rate, the true GDP corrected for inflation and the true growth rate corrected for inflation.
19 CabezaDura (#) Nov 13th, 2013 - 12:49 am Report abuse
@18 Yes, but you know what?? She is chief of the IMF not chief of any opposition block. If it’s a matter of formalizing the real numbers in order just to give these thieves loans for them to use the money for political gains or to steal it, I will prefer that they keep on lying to 2015 about the numbers…We all know that INDEC is bonkers and the economy is in stagflation, they know themselves there is 25% inflation and don’t know how to deal with it and that’s the paramount point not that they lie about it. Why should anyone reward the Ks incompetence by granting them loans for us the good taxpayers to deal with later on??? WHY??? We already have being stolen from the government that owes a lot to the public from the AFJP’s, the Central Bank and the Provinces, and is leaving us with disputes with the WTO having to pay REPSOL, Aerolíneas, etc….And we all know we will ever see it back PLEASE, PLEASE NOWBODY LEND THEM A SINGLE DOLLAR EVER AGAIN
It toke Lavagna a good economy minister (and the last real and independent one we had) a lot of hard work having most of the foreign debt removed after the massive DEFAULT, we were forgiven 75% of it, now let’s not go back to selling our souls to the devil and then complain about it..
20 Welsh Wizard (#) Nov 13th, 2013 - 10:52 am Report abuse
@17 Just follow the rules of the club, that's all. I'm sure everyone would like to be able to lie about figures and get away with but they can't so it seems a shame that one country is able to...
21 CabezaDura (#) Nov 13th, 2013 - 11:09 am Report abuse
20) The lies of INDEC are intended for us the Argentines, not for the outside world. Any businessman or investor knows better than we do how bonkers the economy is. This whole business is only to get Argentina back into the international credit market, something that makes no sense whatever while vast structural problems remain in the Argentine system. There is no point getting into debt before 2015 with the IMF and if we can do without them after better still.
22 yankeeboy (#) Nov 13th, 2013 - 05:23 pm Report abuse
Chicken has gone up 30% in two months, that's got to be one of the best investments in Argentina!
Keep printing Crissy keep printing. Increasing the $ supply has nothing to do with inflation, nothing to do with it at all.
23 CabezaDura (#) Nov 15th, 2013 - 03:37 pm Report abuse
No dummyboy haven’t you read the article and listened to Tompkins?? His purpose is to donate it to the State for making national parks.

Good man with good intentions, but frankly naive, I think he received a unfair treatment by CQC and the Argentine media. Ignorance, chauvinism and stupidity doesn’t forgive a American enviromentalist to have land but it allows and turns a blind eye Italian one or Argentine that are not at all philanthropists and did not acquire honorably the lands

However most of his land is in the cordillera alongside the Chilean border, he doesn’t account for all the organic farming land in Patagonia which is a 1/10 the size of Europe, he has up to 850.000 ha

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