Argentina’s Congress approved President Javier Milei’s decree for a new IMF deal, allowing further negotiations on essential economic measures. Lawmakers voted 129-108 in favor, emphasizing the urgency of addressing Argentina’s debt crisis amid ongoing protests and market instability regarding currency policy changes. Milei’s government defends the necessity of the loan while seeking to resolve the country’s significant financial challenges.
Argentina’s lower house of Congress has approved President Javier Milei’s executive decree supporting a new deal with the International Monetary Fund (IMF), essential for advancing negotiations regarding a future program. The vote in the Chamber of Deputies concluded with 129 in favor and 108 against, while six lawmakers abstained, enabling the decree to become law with approval from just one chamber.
The government requires congressional approval to initiate a new IMF program, with discussions with the lender still ongoing. However, specifics of the proposed deal remain undisclosed. Increased anticipation regarding possible changes in currency policy has recently led to the Argentine peso hitting a five-month low in the parallel market. To address market concerns, Economy Minister Luis Caputo engaged with local media but refrained from revealing potential policy shifts.
While the Congress session unfolded, protests occurred outside the building amid heightened security. Longstanding demonstrations by retirees over inadequate pensions turned violent last week, with additional participant disruptions from football fans. Following the government’s response on March 12, which resulted in numerous injuries and over 100 detentions, the situation has escalated.
Milei’s administration contends that the proposed IMF program will facilitate repayment of the Central Bank’s debts to the Treasury, ultimately decreasing the nation’s overall debt burden. The government maintains that the dire economic circumstances warrant justifying borrowing from the IMF through a decree rather than seeking complete congressional endorsement.
Argentina stands as the largest debtor to the IMF, with this potential agreement marking the 23rd partnership between the two entities, establishing a record for the most arrangements by a single country.
In summary, Congress has sanctioned President Javier Milei’s executive decree enabling negotiations for a new IMF deal, crucial for addressing Argentina’s economic crisis. The approval came amid ongoing protests and heightened market instability concerning currency policies. The Milei administration argues that the IMF program is essential for reducing national debt while navigating the severe economic landscape. A new deal would position Argentina as the IMF’s largest debtor with a record number of agreements, highlighting the critical situation the country faces.
Original Source: batimes.com.ar
