MercoPress. South Atlantic News Agency

Argentina and IMF moving closer, admit holding regular bilateral contact

IMF acting director of External Relations Gerry Rice

Speaking at a press conference from Washington DC on Thursday, IMF acting director of External Relations Gerry Rice said the organization’s directors “will meet in late January or early February to analyze the progress made in Argentina’s statistics”.

When asked whether the IMF could sanction Argentina in case it failed to comply with the international organization’s recommendations to improve its statistics, he replied that he had yet to know which recommendations or measures the Board of Directors would come up with, but that he was certain “the Board would not decide any sanctions against Argentina.”

His conclusive response seems to suggest that the Argentine Government has “carte blanche” to continue applying all of the INDEC controversial methodologies to measure inflation.

The question now is whether the IMF seemingly “benevolent” attitude is rooted in their hopes that Argentina will authorize the organization’s mission looking to revise Article IV, which hasn’t been updated since 2006.

Washington believes that if Argentina is not sanctioned, then there’s no reason why Article IV should not be revised.

“After all, technicians will gather the same contradicting opinions regarding inflation or the GDP being announced on the Economic Global Stage,” they say.

Results saying whether Argentina has made any improvements in its statistics or not will be announced in March, Rice said.

Thursday’s response, however, suggests that the organization will continue to treat Argentina with a “velvet glove”, since right before addressing matters that “irritate the bilateral relationship,” Rice first “welcomed the opportunity to expand their dialogue with Argentina,” and added that they “maintain regular bilateral contact with the Argentine authorities”.