This Thursday night the government of Argentine President Javier Milei surprised citizens by making known that the agreement with the International Monetary Fund (IMF) this time will be done through a Decree of necessity and urgency ( … DNU) issued by the same head of state and not through a bill.
The news that the pact will be promoted by decree and will not be discussed by means of a law, as expected, was informed through an official statement published late on Thursday on the social networks of the president’s office. According to the Government’s increase, “this agreement will strengthen the balance of the Central Bank, an essential milestone to consolidate monetary, financial and macroeconomic stability and Continue with the process of disinflation and release of exchange restrictions».
The text published from the Casa Rosada insists on the concept of “urgency” to justify why an issue of such size for Argentina will not be presented as a bill, but through the modality of a presidential decree. “There is no more necessary and urgent matter than ending inflation that for years ruined the lives of Argentines,” says the text. Then, he adds that “for this reason the president of the Nation aspires to obtain an urgent commitment from Congress, as happened with all the previous governments.”
Next steps
From now on, the decision about Argentina’s treaty with the IMF will be in the hands of the Bicameral Commission, which is the body responsible for analyzing the decrees of necessity and urgency (DNU). This commission is chaired by the libertarian senator Juan Carlos Pagoto.
Once the decree that has been announced on Thursday has been published, the Argentine government has a period of ten days to send it to Congress. Then, the commission has a short time to treat it. In case there was no opinion, the debate of the possible treaty between Argentina and the international financial body goes to the chambers of deputies and senators.
Hours before the news was known, the IMF had publicly assured that the exact figure of the new loan that will be granted to Argentina is still negotiating. This week the Swiss Bank UBS had announced that the agency will provide approximately 20,000 million dollars to the country of tango in case an agreement was closed.
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