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Montevideo, July 4th 2020 - 12:34 UTC

 

 

IMF joins Argentine GDP linked bonds controversy involving potential payment of 3bn dollars

Wednesday, April 9th 2014 - 07:29 UTC
Full article 20 comments
According to Minister Kicillof, with the new measurement methodology, but subject to future review, 2013 growth was 3% According to Minister Kicillof, with the new measurement methodology, but subject to future review, 2013 growth was 3%

The International Monetary Fund reported on Monday a steep deceleration of Argentina’s economic activity for 2014, in a context of “high uncertainty”, according to its latest World Economic Outlook released in Washington.

 However, what’s raising eyebrows and controversy is the IMF’s 2013 estimation of a 4.3% growth according to what they assure it's “official data”. This figure is slightly above the 3.22% annual minimum variation triggered by the more than 3 billion dollars of GDP- linked Bond coupons.

The 4.3% growth informed by the IMF, opposes the preliminary estimation of the GDP variation (3%) released on March 27 by Economy Minister Axel Kicillof, with the new measurement methodology based on the 2014 economic census.

During that press briefing, Kicillof said the final percentage had differed from the 4.9% growth released by official stats office INDEC when informing the EMAE economic activity index, because the “GDP was calculated using a new basis, taken from the 2004 economic census” which revealed “significant differences” from the basis used back in 1993.

Kicillof warned this was a preliminary estimation. A new and provisional one will be elaborated in July, and the definite estimation will be ready in September, to determine whether GDP-linked bonds will be paid or not.

The IMF report reads that even though the GDP data for Argentina has been officially approved, it urges the country to adopt corrective measures aimed at improving the quality of the GDP official figures.

It added alternative sources show “a real growth significantly lower” in 2008 compared to the one showed by official data.

An official communiqué released by the Presidency’s Communications Secretariat on March 27 stated that with this provisional estimation of 3%, the national government should not pay around 2.5 billion dollars for the GDP coupon.

Thus, the data released by the IMF in its report does not match the old activity estimation nor the new GDP index.

Top Comments

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  • Jonaz_BsAs

    The shamelessness of this government is really extraordinary. This latest lie shows a tremendous lack of manhood on Kiss y Loves part, and is a huge embarrassment for decent Argentines. This gov't makes Argentines look like as a bunch of pussy whipped beggars - not even heroin addicts present such pathetic lies.

    Luckily we still have Maravilla Martinez!

    Apr 09th, 2014 - 10:15 am 0
  • CabezaDura2

    If someone was even accountable someday for saying so many lies.

    I really doubt that in all the K years GDP per capita was ever higher than in the 1997-1998 period. And that is saying something.

    Apr 09th, 2014 - 11:24 am 0
  • yankeeboy

    Eventually there will be lawsuits for the GDP linked and Inflation linked bonds.
    I think that and the massive public theft are the main reason CFK has forbid the IMF to audit.

    Apr 09th, 2014 - 11:54 am 0
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