The Argentine lower house of Congress approved President Milei’s decree to support a new IMF deal, allowing for further negotiations. Vote outcomes indicated 129 in favor and 108 against. Economic challenges persist, highlighted by a declining peso and public protests against low pensions. Discussions focus on the potential benefit of reducing debt through the IMF arrangement.
Argentina’s lower house of Congress has endorsed President Javier Milei’s emergency executive decree, supporting a new agreement with the International Monetary Fund (IMF). This significant legislative action occurred on Wednesday, with a vote of 129 in favor, 108 against, and six abstentions, thereby allowing the decree to take legal effect without needing approval from the entire Congress.
The approval is crucial for Argentina to enter a new program with the IMF, as negotiations are ongoing. However, specific details of this agreement remain undisclosed. Heightened expectations regarding potential alterations in currency policy under the forthcoming program have recently contributed to a decline in the Argentine peso, reaching its lowest point in over five months on the parallel market.
In response to growing tensions, Economy Minister Luis Caputo provided an interview to local media to ease market concerns, yet he refrained from revealing any information regarding future policy modifications. Meanwhile, outside the Congress, protests erupted as individuals demonstrated against insufficient pensions, intensifying into violent confrontations with the police, leading to numerous injuries and arrests amidst a government crackdown.
President Milei’s administration contends that the proposed IMF program aims to reduce the Central Bank’s liabilities to the Treasury, asserting that such borrowing will ultimately alleviate the nation’s debt burden. They also justify the decree-based approach due to the critical state of the economy, rather than seeking full congressional consent.
With Argentina being the largest debtor to the IMF and this agreement marking the country’s 23rd accord with the Fund, its implications for the national economy are substantial.
In conclusion, the Argentine Congress’s approval of President Milei’s decree signifies a crucial step toward establishing a new agreement with the IMF amidst ongoing economic challenges. The potential shifts in currency policy are creating concerns in the market, while public protests underscore the societal impact of economic decisions. As Argentina navigates this complex situation, the implications of the forthcoming IMF program will be closely monitored both domestically and internationally.
Original Source: batimes.com.ar
