IMF sanctions Venezuela for failing to provide economic data
The IMF has not been able to conduct the annual review of the Venezuelan economy for 13 years. (Photo: AFP/Juan Barreto)
WASHINGTON: The International Monetary Fund sanctioned Venezuela on Friday (Nov 3) for failing to provide economic data as required of all members.The sanction came on the same day the embattled government in Caracas announced it was calling a meeting of creditors for Nov 13 to try to restructure its foreign debt estimated at US$150 billion.The IMF move carries no financial penalty, but is another sign of Venezuela's strained relations with the fund.The Washington-based lender, which monitors economies of its 189 members, has not been able to conduct the annual review of the Venezuelan economy for 13 years.The IMF board said in a statement it "remains hopeful that the decision will encourage the Venezuelan authorities to re-engage with the Fund through timely and regular data provision and the resumption of Article IV consultations.""Such re-engagement would benefit Venezuela and the international community."
The IMF cited failure to provide data on the operations of the social security institute, exports and imports, and other key economic indicators.Submitting the data on a set schedule "is an obligation of all Fund members to allow for effective surveillance" of the economy, the fund said, and called on Venezuela "to adopt specific remedial measures" but did not provide details on what steps were needed.The IMF board will meet again within six months "to consider Venezuela's progress in implementation."The IMF took similar steps against Argentina in 2013, in the wake of that country's break with the institution and manipulation of its inflation data. But under a new government the country last year reestablished relations with the fund.
Credit-rating agencies are increasingly warning of the risk of a Venezuelan debt default. Analysts were pessimistic about Venezuela's chances of successfully restructuring its debt.President Nicolas Maduro has repeatedly blamed the United States for the country's woes, saying Washington is trying to strangle Venezuela with sanctions.Sanctions imposed by President Donald Trump's administration in August ban US trade in any new bonds issued by the Venezuelan government or state oil company PDVSA - a needed step in any restructuring.
Source : http://www.channelnewsasia.com/news/business/imf-sanctions-venezuela-for-failing-to-provide-economic-data-9374876