Argentina’s Congress approved President Javier Milei’s request for a new IMF loan to increase foreign currency reserves and manage debt payments, despite protests against austerity measures. The vote passed with 129 in favor, enabling Milei to finalize the agreement. Inflation rates have decreased since his administration began, highlighting the economic challenges faced by the nation as it engages in negotiations with the IMF.
On March 11, 2025, Argentina’s Congress granted President Javier Milei approval to negotiate a new loan agreement with the International Monetary Fund (IMF). This decision comes in addition to the existing $44 billion debt that the country owes the lender. The specific amount of the new loan remains undisclosed, yet it aims to enhance the central bank’s foreign currency reserves and address upcoming debt obligations.
Argentina’s legislative procedures require the president to obtain authorization from both congressional houses for IMF dealings. However, Milei successfully secured approval with a vote of 129 in favor, 108 against, and six abstentions in the lower house, thereby paving the way for finalizing the loan agreement. Despite holding a minority position in Congress, Milei’s libertarian party has formed temporary coalitions to advocate for its fiscal reforms.
The vote coincided with significant public demonstrations against Milei’s stringent austerity measures and ongoing negotiations with the IMF. While the protests were larger than previous weeks, they showcased a more subdued tone compared to the violence observed in earlier gatherings. Milei argues that the new loan will facilitate debt repayment to the central bank and combat the persistent inflation crisis that Argentina faces.
The country is grappling with one of the highest inflation rates globally, yet since Milei’s administration commenced in December 2023, public spending cuts have contributed to a deceleration in price increases. Inflation has decreased from 211 percent year-on-year at the end of 2023 to 66 percent as of now. The government initiated discussions with the IMF in November regarding a new “extended fund facility” (EFF) to supersede a prior agreement established in 2022, designed to assist in managing Argentina’s substantial debt burden from a record loan granted in 2018 under former president Mauricio Macri.
In conclusion, President Javier Milei has received congressional approval to pursue a new agreement with the IMF amidst ongoing economic challenges in Argentina. The decision aims to bolster foreign currency reserves and address substantial debt commitments, despite widespread public dissent regarding austerity measures. While inflation rates have improved, significant economic hurdles remain, necessitating careful navigation of both financial negotiations and social unrest.
Original Source: www.rfi.fr
