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

Related materials:

Statement by the IMF Spokesman on Argentina

IMF statement on Argentina

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