MercoPress. South Atlantic News Agency

Kirchner tells IMF to MYOB and stop making recommendations

Mr. Rodrigo Rato spend your time talking to others, because we've almost forgotten about you said Pte. Kirchner

Argentine president Nestor Kirchner on Thursday again criticized the International Monetary Fund, IMF, and ironically said that “the IMF no longer can indicate what we should do, we well know what happened when we did so”.

"(IMF Managing Director) Mr. Rodrigo Rato spend your time talking to others, because we've almost forgotten about you", said Kirchner who added that Argentina currently has "one of the highest international reserves in history, 37.430 billion US dollars". The highest level ever was January 2001, with 37.380 billion US dollars. Mr. Kirchner made his statements on the campaign trail leading to October presidential and congressional elections and in reply to earlier statements by Mr. Rato criticizing Argentina's current economic policies although simultaneously praising the significant reduction of poverty in the country. IMF Managing Director Rato in Washington, (preparing for the annual assembly this coming weekend) underlined Argentina's growth prospects for 2007, an estimated 7.5%, but also warned about the "increase in inflation and government expenditure which is cutting into fiscal equilibrium". Mr. Rato criticized the Argentine government's policy to contain inflation: price controls adding that "administrative decisions are a short term solution for inflationary pressures and monetary policy should play a more relevant part" in containing inflation. The IMF managing director also had harsh words for the recent controversy in Argentina over economic data and the alleged manipulation of indexes by the Statistics and Census Office. "As a general rule all countries need better and transparent economic information", since it does not help to promote trust "and this is true for all countries and not for one specifically". Mr Rato forecasted that growth in Argentina will gradually advance to a more sustainable level but also warned about increasing inflation and government expenditure. "I believe these two issues must be addressed and solved, together with an improved business climate" and this requires "greater transparency in private sector investment rules and in other matters is needed". President Kirchner has had an ongoing battle with the IMF blaming its policy recommendations for the 2001/2002 default and melting of the Argentine economy. The Kirchner administration repaid all pending debts with IMF at the beginning of 2006, but has not ceased to insist on IMF policies' "responsibility" in the collapse of emerging countries economies.