Argentina’s lower house of Congress has approved President Javier Milei’s request for a new IMF loan to support the Central Bank and cover debts. The 10-year loan follows a prior substantial borrowing in 2018 and includes a grace period. Despite protests, Milei views this support as critical for stabilizing the economy and reducing inflation.
On Wednesday, Argentina’s lower house of Congress authorized President Javier Milei’s government to pursue a new loan agreement with the International Monetary Fund (IMF). This agreement aims for a 10-year term, extending beyond the US$44 billion already borrowed by the previous administration of Mauricio Macri to enhance the Central Bank’s foreign currency reserves and address forthcoming debt obligations. While the precise amount of the loan has yet to be revealed, details indicate a four-and-a-half-year grace period on repayments.
The approval of the IMF loan reflects Argentina’s ongoing struggle with economic instability, requiring stringent fiscal measures and market reassurance. President Milei, although facing protests against austerity, maintains that the loan will facilitate debt repayment and combat inflation. As negotiations proceed, the political landscape remains complex, with Milei’s minority government relying on cross-party alliances to push its agenda forward, despite significant public dissent.
Original Source: www.batimes.com.ar
