IMF has confirmed that this month mission to check INDEC statistics – Ambito.com

     Economy
    
    
    Thursday June 16, 2016
    
         
    

In September, Article IV

By: Liliana Franco
 

Communications Director of the International Monetary Fund, Gerry Rice confirmed ambito.com that in the coming days there will come a technical mission of the agency to evaluate price index and GDP prepared by the Indec. “First I want to point out the strong commitment of the authorities (Argentine) to provide transparency to official statistics. Transparency is a key ingredient to improve confidence in official data” Rice said from Washington.

Wednesday Jorge Todesca , predicted that the INDEC is working with the IMF, and so confirmed Rice: “with regard to data released yesterday, we are in the process to evaluate their methodology and in this context, a technical team from the International Monetary Fund will visit Buenos Aires, in the second part of this June, to participate in technical and methodological discussions with the authorities of the Argentine statistical agency concerning data gross domestic product and consumer price index. “

Argentina still has a motion of censure by the unreliability of official statistics. Although they have changed the authorities and decided to discontinue the IPCNU, the IMF continues to maintain its previous schedule to evaluate whether or not to lift the sanction. This was explained Rice: “These recommendations of the IMF staff team will be the basis of report submitted to the Board on progress in Argentine statistics”

The report will be. submitted on July 15. “It is expected that the board review the decision (of censorship) on Argentine data by the end of August and September”.

Also the director of Communications anticipated at the question of scope .com: “we are ready to move forward with chapter IV referred to Argentina and to this end we are planning a mission (to come to Argentina) by the end of September, which is independent of the mission will come in July,” concluded Rice .

it should be noted that Argentina does not have the revision of Article IV since July 2006. For the previous government to allow a mission to analyze the Argentine statistics was seen as an intrusion.

in fact under Article IV, “all member countries undertake to collaborate with the IMF and other members to promote stability and to meet this objective, the IMF is tasked with overseeing the international monetary system to ensure smooth operation and to monitor compliance by each country of its obligations on economic policy “.

While Article IV report points out errors in economic matters but such observations are not recommendations that the country must meet restrictively unless you have a current loan.

it is that according to the statute of the IMF stipulates that bilateral surveillance should focus on assessing whether the policies of each country promote external stability. For this mission visiting the country aims to analyze the monetary, fiscal, financial and exchange, and assessment of risks and vulnerabilities.

The government of Mauricio Macri commitment to transparency and truth and economic matters these concepts apply to the statistics. Yesterday in the presentation of CPI for May, the head of INDEC, Jorge Todesca said: “We left behind a clear and definitive manner, a period of adulteration of public statistics” While admitting the. support of President Macri but said that “nobody asked me to do things in a certain way”.

in line with what was said by Rice yesterday the head of INDEC said that working in permanent contact with both the United Nations as the International Monetary Fund for the purpose of achieving the professionalism of local statistics. In the particular case of the IMF, you try to lift the censorship that once applied the multilateral agency on the grounds that the Argentine statistics do not adequately reflect reality. Also recalled that Argentina seeks to join the OECD and for this to be possible, it is necessary to have a statistical system above suspicion.

If everything complies with the schedule announced by the Fund Presumably then 10 years Argentina will return again to have its Article IV, a document often perused by outside investors

.