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IMF Censure of Argentina Cements Investor Outcast Status

The International Monetary Fund’s historic rebuke of Argentina is likely to cement its outcast status among global investors while failing to persuade the government to boost the credibility of its economic data.

Argentina on Feb. 1 became the first nation to be censured by the IMF after the Washington-based lender said that President Cristina Fernandez de Kirchner’s government isn’t addressing concerns that it’s underreporting inflation, which analysts forecast is more than double the 10.8 percent official rate. While the move won’t have an immediate effect, it takes the country a step closer to sanctions that include expulsion.