Argentina’s Congress has approved a new IMF loan under President Javier Milei to bolster foreign currency reserves and address debt payments. The specifics of the loan remain undisclosed, but it aims to help combat high inflation rates and support the government’s fiscal agenda amidst growing public protests against austerity measures.
Argentina’s Congress has approved President Javier Milei’s request to negotiate a new loan with the International Monetary Fund (IMF), which comes in addition to the existing $44 billion debt. On March 11, Milei sought approval for a new 10-year loan aimed at increasing the central bank’s foreign currency reserves and managing upcoming debt obligations. The specific amount of this prospective loan remains undisclosed.
A law enacted in 2021 mandates that the Argentine President must obtain authorization from both Congressional houses to secure funds from the IMF, with approval from only one house sufficing for proceeding. In a vote resulting in 129 votes for, 108 against, and six abstentions in the Chamber of Deputies, Milei now possesses the authority to finalize the loan agreement. Despite his party being a minority in Congress, Milei has formed temporary alliances to advance his cost-cutting agenda.
The Congressional vote occurred amidst significant protests against Milei’s stringent austerity measures and IMF negotiations. Although larger than previous demonstrations that resulted in injuries, notably from pensioners and football fans, the recent protests remained relatively peaceful. Milei believes that the new IMF loan will assist in repaying debts to the central bank and help address the nation’s persistent inflation issues.
Argentina experiences one of the highest inflation rates globally, yet under Milei’s administration since December 2023, the rate has slowed markedly—from 211 percent in late 2023 to 66 percent currently. His government initiated negotiations with the IMF in November to establish a new “extended fund facility” (EFF) to replace the previous agreement from 2022. This EFF aims to reevaluate Argentina’s debt, particularly the substantial $44 billion loan secured in 2018 during Mauricio Macri’s presidency, which remains the largest loan ever issued by the IMF.
In conclusion, President Javier Milei has successfully secured Congressional approval to seek a new loan from the IMF amidst significant protests regarding his austerity measures. This new agreement aims to stabilize Argentina’s economy, enhance the central bank’s reserves, and confront the nation’s high inflation level. Despite opposition and challenges, the government’s efforts to negotiate favorable terms with the IMF indicate a determined approach to economic reform in Argentina.
Original Source: www.rfi.fr
