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IMF ‘definitive’ assessment of Argentine inflation and GDP stats in February

Thursday, January 17th 2013 - 20:27 UTC
Full article 34 comments
Ms Lagarde: ‘it will be on February first’. If no agreement is reached IMF could implement sanctions Ms Lagarde: ‘it will be on February first’. If no agreement is reached IMF could implement sanctions

IMF Managing Director Christine Lagarde confirmed to the Argentine media that next February first the fund will be assessing her critical report on Argentine statistics, which could lead to sanctions for the country.

“It will on February first”, said Ms Lagarde during her first press conference of the year, when asked on the issue, and contrary to other occasions did not make any further comments.

This would be the definitive assessment of the Argentine case following on repeated postponements. After the evaluation, and according to procedure, IMF directors could consider a ‘red card’ against Argentina given the limited reliability of the country’s stats mainly referred to inflation and GDP, which are the most questioned both domestically and internationally.

At the beginning of this month the Argentine government official stats office, Indec, published that during 2012 prices advanced 10.8%, less than half the average from the consultants, censored by the government, and which reported 25.6% through the so called Congress index.

The IMF announcement of the stats report evaluation day comes at a bad moment for President Cristina Fernandez administration which was expecting the issue could be delayed until after the ongoing court case in New York by the hedge funds that are demanding full payment of capital and interest of Argentine defaulted sovereign bonds. These hedge funds are among the 7% of bond holders that did not accept the debt restructuring process of 2005 and 2010.

Parallel to Ms Lagarde confirmation of the stats controversy, a delegation from the IMF and World Bank are expected next March in Buenos Aires for an assessment of the country’s financial system. This would be the second time IMF staff arrives in Argentina during the administration of Cristina Fernandez. The first was back in 2011 when the now failed commitment from Argentina to improve its inflation and GDP stats with the support from the IMF and which has led to the current dispute.

Top Comments

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  • briton

    To be truthful
    We are not really interested,
    Next blogg please,
    Make it a juicy one

    Jan 17th, 2013 - 08:36 pm 0
  • redpoll

    Well in the gight between Cristina and Chritine I know who I would put my money on

    Jan 17th, 2013 - 09:01 pm 0
  • reality check

    The IMF are not going to sanction them and she knows it, it will be a case of last warning honest, come next time, it will still be a case of, last warning we mean it this time. The one after that will be, this is deffinately your last warning and so on and so on and so on.

    Jan 17th, 2013 - 09:14 pm 0
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