Argentina’s Congress approved President Javier Milei’s request for a new IMF loan, aiming to improve foreign currency reserves and meet debt obligations. The proposal received 129 votes in favor and reflects Milei’s focus on reducing inflation, despite rising poverty levels and public protest against austerity measures.
Argentina’s Congress recently approved President Javier Milei’s request to negotiate a new loan agreement with the International Monetary Fund (IMF). This comes on the heels of an outstanding debt of $44 billion that Argentina already owes to the IMF. With the objective of enhancing the central bank’s foreign currency reserves and addressing upcoming debt obligations, Milei is seeking a new 10-year loan, though the precise amount of this prospective agreement remains undisclosed.
The approval to pursue additional IMF funding was facilitated by a vote in the Chamber of Deputies. Out of 243 votes, 129 were in favor, while 108 opposed, and six abstained. Under existing legislation, while the president must obtain authorization from both congressional houses, securing approval from just one is sufficient to move forward.
Despite Milei’s political party being a minority in Congress, he has successfully formed temporary alliances to advance his fiscal policies. This legislative progression occurred amid significant public outcry, with thousands protesting against Milei’s austerity measures and dealings with the IMF. Demonstrators expressed frustrations emblematic of the broader economic distress, with sentiments that past agreements with the IMF have led to worsening conditions.
Milei has expressed that the new loan is pivotal for addressing the nation’s debts and combating rampant inflation, which is among the highest globally. Since his assumption of office in December 2023, he has enacted substantial public spending cuts, resulting in a notable decrease in inflation rates—from 211 percent at the end of 2023 to 66 percent currently—although poverty levels continue to rise.
In summary, President Javier Milei has secured Congressional approval to negotiate a new IMF loan, amidst ongoing economic challenges and significant public dissent against austerity measures. This decision aims to bolster Argentina’s financial reserves and address its considerable debt, indicating Milei’s commitment to tackling the country’s inflation crisis. The path ahead involves balancing economic reform with the concerns of a restless populace.
Original Source: www.rfi.fr
