In addition to the $44 billion Buenos Aires currently owes the IMF, President Javier Milei was authorized by Argentina’s Congress on Wednesday to negotiate a new loan arrangement.
On March 11, Milei requested that parliament authorize a new 10-year loan to increase the central bank’s foreign exchange reserves and pay off impending debt.
The potential loan amount to the second-largest economy in South America, which has received 22 bailouts from the IMF despite multiple financial defaults, has not yet been made public.
Under a 2021 law, Argentina’s president must seek authorization from both houses of Congress to take money from the IMF, but only needs support from one to proceed.
With 129 votes in favor to 108 against and six abstentions in the Chamber of Deputies, the lower house, Milei now has a free hand to finalize the agreement.
Despite having a minority in Congress, Milei’s small libertarian party has forged ad hoc coalitions to advance its cost-cutting policies.
As thousands of demonstrators gathered outside the legislature to protest Milei’s austerity policies and his negotiations with the IMF, the vote on the IMF loan was held.
“Every time something is agreed with the IMF, things get worse for us,” said Rodolfo Celayeta, a 73-year-old retiree who took part in the demonstration that was bigger but more peaceful than protests last week by pensioners, backed by football fans.
Last week, 45 people were hurt during running conflicts with the police.
Demonstrators threw stones and other objects at police on Wednesday night, causing minor confrontations. After being struck by fireworks, two officers were transported by ambulance.
With almost 2,000 officers on duty, Security Minister Patricia Bullrich declared Wednesday’s security operation “successful.”
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