Intervención oficial al INDEC

Discussion in 'Financial Terms' started by William Stein, Dec 10, 2014.

  1. William Stein Senior Member

    San Jose, Costa Rica
    American English
    This is another question about Argentina. INDEC is usually "Instituto Nacional de Estadísticas y Censos" but sometimes in this document it seems to mean some kind of rate?? Or does it mean because of the change within the INDEC (as the institution that determines the inflation rate):

    Bonos ajustables por CER: Los titulos argentinos que ajustan por la inflacion ya cayeron tanto de precio tras la intervención oficial al INDEC, que otra vez lucen atractivos. Es que aun si la inflacion que determina el secretario de Comercio Interior, este año es de sólo 8%, el rendimiento final de los bonos indexados por el CER sería atractivo para inversores.

    Bonds adjustable for ERC (Economic Risk Capital): The prices of Argentine inflation-adjusted securities have already dropped so much after the official adjustment of the CPI according to INDEC ??? that they are starting to look attractive again since even though the inflation rate determined by the Domestic Trade Secretary this year is only 8%, the final yield of the ERC-indexed bonds could make them attractive to investors

    Here's another example:

    Cambio en INDEC haría perder a ahorristas usd 280 millones en títulos:
    Es consecuencia de la menor inflación tras la intervención en el INDEC. Esto le genera sólo en enero un menor pago de usd 280 millones por bonos que indexan por CER.

    Change in the [CPI according to???] INDEC has reportedly made savers lose USD 280 million on bonds: as a result of reduced inflation following the adjustment of the [CPI according to???] INDEC. In January alone, their yield will be reduced by USD 280 million for ERC (Economic Risk Capital)-indexed bonds.

    I just found this passage that suggests that "Indec" sometimes means the Consumer Price Index according to the INDEC:

    El CPI real vs. Indec
    El chart 1 muestra el acumulado de 2007 a hoy de CPI Indec vs. CPI ('real') estimado por XXX. El decoupling entre ambos arranca en Enero del 2007, luego de la intervención del Indec por parte de YYY.

    Any opinions?
    Last edited: Dec 11, 2014
  2. neenag Senior Member

    English (UK)
    You've got the right Idea. INDEC is Argentina's national office for statistics and they calculate the CPI (official measure for inflation).

    I don't think they "officially intervened in the bond market". The inflation figure INDEC calculated would have had the effect of lowering bond prices.

    Here are a few suggestions:-

    after being adjusted/revised for CPI according to INDEC
    after taking into account (the) CPI, officially published/released by INDEC
    after being adjusted for CPI, (officially) published by INDEC
  3. William Stein Senior Member

    San Jose, Costa Rica
    American English
    Hi neenag,

    Thanks again.
    I finally figured out what really happened. The agency that set the CPI (INDEC, as you say) was totally corrupt according to the some whistleblowers inside the agency and got orders (probably from Papa or Mama Kirchener) to ignore the rising prices and to delete a lot of them from the official database so the official rate of inflation was much lower than the real rate. That saved the government money because the yields on their Treasury Bonds (if that's what they're called in Argentina) could be lower than they would have to be offset the actual inflation.

Share This Page