The Corner

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You Couldn’t Make It Up…


. . . Well, perhaps, you could.

The Daily Telegraph reports:

The IMF Executive Board [has] found that Argentina’s efforts to meet its demands for better GDP and inflation data have “not been sufficient. As a result, the Fund has issued a declaration of censure against Argentina.”

The censure decision opened the way to Argentina possibly losing its voting rights at the IMF, or even losing it membership, AFP reported.

But the Executive Board put off that decision and gave Buenos Aires another eight months to resolve the problem before it takes further action. The Argentine government has until September 29 to meet its requirements, and IMF Managing Director Christine Lagarde will then have to report on the issue to the board by November 13.

“The Fund stands ready to continue its dialogue with the Argentine authorities to improve the quality” of the official data, the board said in a statement.

Good luck with that.

The official Argentine statistics are sharply different from those private sector economists issue.For instance, last month the government said that inflation in 2012 was 10.8pc, while a group of private economists who collate their data put the rate at 25.6pc. Buenos Aires benefits from understating the data, because a large part of its sovereign debt is indexed to inflation.

And it’s not just the country’s lenders who suffer.

To paraphrase Herb Stein, if something cannot go on forever, it won’t. 


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