The International Monetary Fund (IMF) congratulated this Friday (28) the approval by the Argentine Congress of the Basic Law, with which the government chaired by Javier Milei intends to clean up the economy and facilitate new investments.
“We welcome Congress’s approval of key fiscal and structural legislation, as well as measures to strengthen the monetary policy framework. The bill aims to improve the quality of fiscal consolidation, further reduce inflation, and support the economic recovery,” IMF spokesperson Julie Kozack said on social media.
Milei’s government achieved a political victory in the early hours of this Friday morning with the approval, after six months of an arduous parliamentary process, of an ambitious package of economic reforms.
The Framework Law, together with the fiscal adjustment plan, constitutes the heart of Milei’s government program. The law declares a public emergency in administrative, economic, financial and energy matters for a period of one year, giving the Executive Branch delegated powers in these sectors.
Kozack said the IMF, with which Argentina has a debt refinancing program, will continue to “collaborate constructively” with Milei’s economic team “on policies to create a more prosperous and stable Argentina.”
On June 14, the fund’s executive board approved the eighth review of the agreement with Argentina, allowing an immediate disbursement of approximately $800 million to the country.
Total bailouts under the IMF agreement with Argentina amount to about $41.4 billion.
In March 2022, the then government of Peronist Alberto Fernández signed an agreement with the IMF to refinance loans of around US$45 billion that the organization had granted to Argentina in 2018, during the presidency of conservative Mauricio Macri.
The pact includes quarterly reviews of the level of compliance with strict fiscal discipline targets, accumulation of monetary reserves and limits on monetary issuance.
Meeting these goals and approving each review are necessary for new disbursements to Argentina by the organization, funds that, in turn, the country uses to cancel its debt with the entity, which totaled US$40.899 billion at the end of 2023.
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