IMF about to show “red card” to Argentina
Argentina could be forced out of IMF and G20 over accusations it repeatedly fails to provide accurate inflation and GDP data.
The International Monetary Fund (IMF) head Christine Lagarde is to send a report on Argentina to the IMF board on Monday that could result in the country’s expulsion, The Guardian reports.
In September the IMF warned there could be repercussions if Argentina fails to produce accurate inflation and growth data and set a three-month deadline that expires on Monday. The IMF claimed Argentina had “not brought itself into compliance” over the “quality of the official data reported to the Fund.” Argentina has yet to respond.
Argentina officially reported 8.9% GDP growth in 2011, but independent analysts claimed that it is three percentage points higher than real figures. As for inflation rate, Argentinean officials report it stands at about 10%, while independent data shows it has reached 25%-30%.
To get figures that look closer to reality, the opposition in Argentina’s lower legislative house use the Argentine Congress Index, a work by nine private agencies, and publish the numbers through the House Freedom of Information Committee, BusinessInsider reports. Rising prices have been a major spur to recent mass protestsagainst Kirchner’s government in the capital Buenos Aires.
If censured, Argentina could have its voting rights suspended and consequently expelled from the IMF. Expulsion from the 188-member club could mean the country would lose access to international credit lines. Argentina is already the only G20 member not to allow regular IMF scrutiny of its state accounts. 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.” Also it will be the first time a country has been expelled since the former Czechoslovakia was kicked-out in 1954 for “failing to provide required data.”
However, if Lagarde recommends censure in Monday it does not mean that Argentina will be expelled the same day, the Financial Times reports. The IMF board which would have to approve the move and it is not expected to meet until January.
naughty argentina..christine says you arent telling the truth..they would know..they are the experts at it..with her friends the international bankers..just look at libor and its scandal for starters..tell them to “fuck off” argentina..