Fund censures Argentina over inflation figures

12 February 2013

The executive board of the IMF met in early February to assess Argentina’s progress in addressing the quality of its statistical data on inflation and GDP, a long-standing bone of contention between the Fund and Argentina, whose official rate of inflation has been questioned for being too low. Argentina’s efforts to reassure the Fund of the probity of its inflation data were found to be insufficient and the board issued a declaration of censure, calling on the country to comply with the IMF’s demands no later than September 2013. If it fails to do so, the Fund will consider tougher measures, such as a declaration of ineligibility, the suspension of its voting rights and, as a last resort, a compulsory withdrawal, in effect, expelling Argentina from the Fund’s membership. This is the first time that the Fund has resorted to these type of measures, which were only adopted in 2011. Argentina’s minister of economy said that these actions were “a clear example of unequal treatment and double standards of this organisation in its relationship with certain member countries”. The Argentinian government also demanded an extraordinary meeting of the board of governors.