Argentina’s Congress has approved President Javier Milei’s decree in favor of a new IMF deal, allowing for a formal announcement about the program. The decision faced protests outside Congress and comes amid ongoing negotiations with the IMF. Lawmakers argue the deal will help reduce the country’s debt, although crucial details remain undisclosed.
Argentina’s Congress has endorsed President Javier Milei’s emergency executive decree supporting a new deal with the International Monetary Fund (IMF). The Chamber of Deputies passed the measure with a vote of 129-108, which is sufficient to enact the decree without the need for approval from the Senate, facilitating a formal announcement about the upcoming program details.
This approval is crucial for Argentina to secure a new IMF agreement, with negotiations currently ongoing. However, many significant aspects of the program have yet to be disclosed to the public. The anticipation of shifts in currency policy under this new deal has led to a decline in the Argentine peso, reaching its lowest value in over five months in the parallel market.
In response to market concerns, Economy Minister Luis Caputo provided insights through local media, yet he refrained from discussing potential future policy changes. Outside Congress, protests erupted as lawmakers debated the decree, highlighting concerns from retirees about low pensions, which have intensified due to recent violent clashes with football fans, prompting an aggressive governmental response that led to injuries and numerous detentions.
Milei’s administration claims the IMF program will facilitate the repayment of the Central Bank’s debts, ultimately lowering the national debt. They justify the use of a decree for borrowing from the IMF, citing the country’s severe economic crisis, which necessitates expedited action over full congressional deliberation. Argentina, being the largest debtor to the IMF, would mark this new agreement as its 23rd, the highest number for any country historically.
The passage of President Javier Milei’s decree by Argentina’s lower house is a significant step toward establishing a new agreement with the IMF, essential for the country’s economic strategy. Despite the approval, critical details remain undisclosed, and public unrest indicates societal tensions regarding economic reforms. The government’s rationale for the decree emphasizes the necessity of immediate action amidst a severe economic crisis, marking an important phase in Argentina’s relationship with the IMF.
Original Source: batimes.com.ar
