Argentina’s Congress has granted President Milei approval for a new IMF loan to enhance foreign reserves and manage existing debt, amidst protests against austerity measures. The specific loan amount remains undisclosed, yet it follows a significant decrease in inflation under Milei’s administration.
Argentina’s Congress has authorized President Javier Milei to pursue a new loan agreement with the International Monetary Fund (IMF), adding to the existing $44 billion debt the country owes. On March 11, Milei requested approval for a 10-year loan aimed at enhancing the central bank’s foreign currency reserves and addressing impending debt obligations. The specific amount of the proposed loan remains undisclosed, but it is anticipated to address the nation’s economic challenges.
According to a 2021 law, President Milei requires approval from both houses of Congress to secure IMF funds; however, support from just one house suffices to proceed. With the Chamber of Deputies voting 129 in favor, 108 against, and six abstentions, Milei is now positioned to finalize the agreement, even though his libertarian party holds a minority in Congress.
Recent protests occurred near the legislature against Milei’s stringent austerity measures and IMF negotiations, although the protests were calmer compared to previous demonstrations that resulted in injuries. Milei asserted that securing this new IMF loan would enable the government to manage its debts and combat inflation, which has plagued the country.
Argentina has been experiencing one of the world’s highest inflation rates. Under Milei’s administration, there has been a notable decline in inflation from 211% at the end of 2023 down to 66% currently. Following discussions with the IMF starting in November, the government is pursuing an “extended fund facility” that aims to refinance existing debt, succeeding an earlier arrangement made in 2022 under former president Mauricio Macri, which was historically significant as the largest loan in the IMF’s history.
In summary, Argentina’s Congress has approved President Javier Milei’s request to seek a new IMF loan, crucial for bolstering the country’s foreign currency reserves and managing debt obligations. Despite protests against austerity measures, the government aims to address its economic troubles. Given the ongoing inflation crisis, the proposed loan represents a strategic effort to stabilize the economy and restore fiscal balance.
Original Source: www.rfi.fr
