Argentina’s Congress approved President Javier Milei’s decree for a new IMF deal, facilitating negotiation processes. The vote allows for advancing a program amidst economic unrest and public protests regarding pension reforms and currency policy changes. The administration argues that the loan will help reduce national debt, as Argentina anticipates its 23rd IMF agreement, highlighting its significant indebtedness.
Argentina’s Congress ratified President Javier Milei’s emergency executive decree, which supports a new agreement with the International Monetary Fund (IMF). This legislative action, with a vote of 129 in favor and 108 against, allows proceedings to advance toward formalizing the program details. The decree’s approval is significant as it only requires the backing of one congressional chamber to become law.
To initiate a new IMF program, congressional authorization is essential, and negotiations with the institution are currently ongoing. However, specific program details remain undisclosed, leading to speculation regarding potential currency policy changes that have caused the Argentine peso to reach a five-month low in the parallel market this week.
Economy Minister Luis Caputo attempted to ease market anxiety through media communications yet refrained from providing insights into forthcoming policy adjustments. Meanwhile, outside the Congressional chambers, protests escalated, reflecting public dissent over pension inadequacies, particularly as recent demonstrations have been marred by violence involving disgruntled football fans. The government’s forceful reaction on March 12 led to injuries and numerous detentions.
Milei’s administration contends that utilizing the IMF loan will facilitate the reduction of the Central Bank’s debts to the Treasury, ultimately lowering the national debt. They also assert that Argentina’s dire economic conditions justify the decree’s issuance over full congressional consent. This upcoming agreement would mark Argentina’s 23rd pact with the IMF, solidifying its status as the Fund’s most indebted nation.
In summary, the Argentine Congress has approved President Javier Milei’s decree to endorse a new IMF agreement, enabling essential negotiations to proceed. The approval is crucial for addressing Argentina’s economic crises and financial obligations. However, the unfolding situation is amplified by public unrest and concerns over the potential ramifications of this deal, marking a critical juncture in Argentina’s economic policies and relations with the IMF.
Original Source: batimes.com.ar
