Argentina’s Congress has authorized President Javier Milei to negotiate a new IMF loan, despite ongoing protests expressing discontent with austerity measures. The loan aims to boost foreign reserves and manage debt, with inflation significantly reduced since Milei took office. Negotiations with the IMF have begun for refinancing Argentina’s substantial existing debts.
On Wednesday, Argentina’s Congress approved President Javier Milei’s request to negotiate a new loan agreement with the International Monetary Fund (IMF), adding to the existing $44 billion owed. This authorization will enable Milei to pursue a 10-year loan aimed at bolstering foreign currency reserves and addressing pressing debt obligations. The specific amount for the new loan has yet to be disclosed.
In compliance with a 2021 law, President Milei sought approval from both chambers of Congress, requiring support from only one house to proceed. The final vote in the Chamber of Deputies resulted in 129 votes for, 108 against, and six abstentions, granting Milei the authority needed to finalize the agreement. Despite his small libertarian party being in the minority, Milei has successfully formed alliances to advance his agenda.
As legislative proceedings unfolded, protests erupted nearby, with demonstrators opposing Milei’s austerity measures and IMF negotiations. A participant, Rodolfo Celayeta, expressed concerns, stating, “Every time something is agreed with the IMF, things get worse for us.” Last week’s protests resulted in injuries and confrontations, though Wednesday’s demonstrations were less violent.
President Milei believes the new IMF loan will facilitate the settlement of central bank debts and aims to combat Argentina’s rampant inflation, which ranks among the highest globally. Since taking office in December 2023, Milei has successfully slowed inflation from 211% to 66% year-on-year, despite an increase in poverty levels caused by severe public spending cuts.
Negotiations with the IMF concerning a new extended fund facility (EFF) commenced in November to replace a prior arrangement established in 2022. The EFF aims to refinance Argentina’s debts, allowing repayment of the record $44 billion loan secured during Mauricio Macri’s administration in 2018.
In summary, President Javier Milei has received congressional approval to negotiate a new IMF loan to enhance Argentina’s foreign currency reserves and meet imminent debt payments. The recent protests underscore public dissent against austerity measures tied to IMF agreements. Although inflation has decreased under Milei’s economic policies, poverty remains a concern. The ongoing negotiations signify an effort to stabilize Argentina’s economy and manage its significant existing obligations.
Original Source: www.rfi.fr
