MercoPress. South Atlantic News Agency
Argentina’s inflation in 2012 climbed to 25.6% according to private agencies
The 2012 twelve-month inflation in Argentina climbed to 25.6%, two times the figures registered by the official data from stats office Indec, according to the index presented by opposition lawmakers based in the analysis of nine private agencies. Read full article
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Disclaimer & comment rulesI do like the idea of the Congressional Index (i.e. the actual rate, only having to be released through Congress, so the government doesn't fine the private sector companies for telling the truth again).
Jan 15th, 2013 - 09:28 am - Link - Report abuse 0I wonder if the IMF approve?
IMF are going to have a field day,
Jan 15th, 2013 - 11:34 am - Link - Report abuse 0The time to face the music is looming, great isnt it?
The IMF wants all INDEC stats recalculated back to when they started falsifying the data.
Jan 15th, 2013 - 01:46 pm - Link - Report abuse 0The IMF spent a lot of time a couple years ago with INDEC developing the methodology they want them to use AT THE REQUEST OF ARGENTINA but CFK has refused to release the stats with the new method.
Arg should be discussed at the IMF Exec Board meeting shortly.
@3 yankeeboy
Jan 15th, 2013 - 01:56 pm - Link - Report abuse 0Say that they do agree to recalculate the stats from the beginning of falsification (however unlikely, CFK is more likely to brand the IMF as a vulture fund).
What will that do with things like the inflation linked bonds? I imagine there will be retroactive payments to be made.
Owners of Arg Inflation linked bonds have already been filing lawsuits. It is estimated there has been up to a U$ 30 B underpayment in interest.
Jan 15th, 2013 - 02:13 pm - Link - Report abuse 0Frankly I don't think she is worried about the $. I think she is more concerned with the K legacy. They have been telling lies for so long trying to make them look like they are best thing that has happened to Argentina since Genetically Altered Soy!
The recalculation will show GDP growth was not “ at China rates” that poverty never went below 30% and with a little digging they will find that all of this so called growth has come from stealing every single cent of hard $ in the country, BCRA, ANSES, YPF, etc etc etc. about U$25B/yr stolen and replaced with Arg bonds paying an interest rate lower than inflation.
I would hate to be the next ruler.
@5
Jan 15th, 2013 - 03:09 pm - Link - Report abuse 0The IMF will discuss but will they actually do anything? I almost expect them to give more time to comply, I say this as expulsion and the resulting effects will kill the country, the IMF won't want this on their hands as, from the outside, it will look like the IMF has destroyed a country for telling a couple of fibs about their stats.
Personally, my view is that if you are in the club and you've signed-up then abide by the fcuking rules, however, I'm not the IMF. So, quick straw poll. Does the IMF have the balls to issue the red card, yes or no? I'll go first and say, this time...
No
My friends that work at WB & IDB expect the Exec Board to follow through with the censure. It will take a 18-24 months before they are expelled. That is long enough for a change in Gov't in Arg.
Jan 15th, 2013 - 03:32 pm - Link - Report abuse 0@7
Jan 15th, 2013 - 03:38 pm - Link - Report abuse 0Interesting as this will be a first. What if gov change their mind in the meantime and update the stats, I suppose they will have to pay out...either way they can't really win
IDB has had Argentina on risk “eminent default” since 3rd quarter of last year.
Jan 15th, 2013 - 04:00 pm - Link - Report abuse 0By charter neither IDB or WB can disburse funds once Arg has been censured. It is a serious hit to their U$ accumulation tactic.
Got you. So during the period between censure and expulsion they won't have access any IDB/WB funds, do we have any idea how much this accounts for?
Jan 15th, 2013 - 04:25 pm - Link - Report abuse 0Also, where does this leave car manufacturers/multinationals, obviously it will hit their cost of funding dramatically but will they be able to operate during that time or are they prohibited from operating in a censured country...I suppose that it could impact on the MAC clause in their loan agreements but banks aren't going to pull funding on that basis...how do you see it playing out?
10. I don't think anyone knows what will happen as usual Argentina is making history and not in a good way!
Jan 15th, 2013 - 06:53 pm - Link - Report abuse 0If IMF does censure it will give the USA a good excuse to kick Arg out of G20, no company will have access to ExIM bank or be able to sign contracts without the ICSID and no Int'l org will take that risk.
My guess is that financing will become so difficult most US EU mfg will leave the country. It will take a couple years though and by then CFK will be gone and it will be someone else's problem.
For her this is just a waiting game. She doesn't care what happens when she leaves because she will either be dead or my guess is in jail.
She wont be dead (through revolution etc) and shes not going to jail. Too many of her associates and their associates have their fingers in the pie. Every knows that Menem stole BIG time and hes still a senator. Its the system not just CFK . Same way that Tony Blair wont be going to jail for fibbing about an imminent threat of Iraq to UK with WMDs.
Jan 17th, 2013 - 04:07 pm - Link - Report abuse 0Commenting for this story is now closed.
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