Milei Secures Victory as Deputies Approve IMF Decree Amid Economic Transformation

President Javier Milei celebrated Wednesday after Argentina’s Chamber of Deputies approved his emergency decree authorizing a new loan agreement with the International Monetary Fund. The decree passed with 129 votes in favor, 108 against, and 6 abstentions.

“The President thanks the 129 deputies who understood the mandate from the ballot boxes and sent a message to our creditors that shows maturity and greatness,” the presidential office stated. They emphasized that fighting inflation has become a state policy in Argentina.

The approved decree enables negotiations for a new Extended Fund Facility with generous terms. The arrangement offers a repayment period of up to 10 years with a 4.5-year grace period.

Officials plan to use these funds to cancel debt that the Treasury owes to Argentina’s Central Bank. Argentina currently owes the IMF $44 billion and ranks as the fund’s largest borrower. The South American nation has participated in 22 IMF programs throughout its history.

The government asserts this new agreement will strengthen international reserves and reduce public debt. Milei’s libertarian administration has implemented drastic economic reforms since taking office in December.

His policies include slashing public spending, reducing state subsidies, and devaluing the peso by more than 50%. These measures caused short-term pain but produced early positive results.

Argentina’s Economic Outlook Amid IMF Deal and Protests

The country recently recorded its first quarterly fiscal surplus in nearly two decades. Monthly inflation has fallen from 25.5% in December to single digits now, though annual inflation still hovers around 290%.

Protesters gathered near the legislature Wednesday to oppose the IMF deal and austerity measures. “Every time something is agreed with the IMF, things get worse for us,” said one 73-year-old retiree at the demonstration.

The administration maintains that economic stability forms the foundation for eliminating inflation permanently. Milei repeatedly pledged to remove currency controls that have restricted foreign investment since 2019. He views the IMF agreement as essential for this goal.

The World Bank projected Argentina’s economy has contracted by 3.5% in 2024 before rebounding with 5% growth in 2025. But in reality the economy only contracted by 1.7%. Ministers hope improved agricultural harvests and energy exports will drive this recovery.

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