IMF threatens Argentina with sanctions for falsifying growth & inflation data

19 Dec

Ed Butler, The Guardian

President, Cristina Fernández de Kirchner. (Courtesy: Enrique Marcarian/Reuters)

President, Cristina Fernández de Kirchner. (Courtesy: Enrique Marcarian/Reuters)

Argentina faces the prospect of eviction from the world economic community after its apparent failure to respond to a three-month deadline set by the International Monetary Fund to produce accurate inflation and growth statistics.

Ejection from the IMF could lead to a variety of economic and political penalties, including exclusion from the G20 of industrial nations. IMF rules state that member states “must not co-operate with a non-member in practices that would be contrary to … the purposes of the Fund”.

Some experts believe the IMF’s managing director, Christine Lagarde, has lost patience with President Cristina Fernández de Kirchner’s government. A spokesman for the IMF has said that a report will be submitted to its board on Monday which will decide the course of action.

Official inflation statistics in Argentina show prices rising at around 10% but independent assessments have prices rising at 25% and more. The problem that inflation is running higher than official figures is acknowledged by Gabriela Cerruti, an MP from the governing party.

Read the full article from The Guardian

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IMF statement on Argentina

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