Argentina’s Lower House Approves Milei’s IMF Emergency Decree

Argentina’s Lower House approved President Javier Milei’s Emergency Decree facilitating further IMF borrowing for Central Bank reserves. The vote had broader political support, while the opposition expressed concern. The government is focused on combating inflation and ensuring economic stability. Meanwhile, ongoing social issues were highlighted by a retirees’ march amidst security challenges.

On Wednesday, the Lower House of Argentina approved President Javier Milei’s Emergency Decree (DNU), allowing for increased borrowing from the International Monetary Fund (IMF). The vote concluded with 129 in favor, 108 against, and 6 abstentions, supported primarily by the ruling La Libertad Avanza (LLA) along with PRO, UCR, and other political factions. Opposition stemmed from the Peronist Unión por la Patria (UxP) and various leftwing groups.

The Office of the President released a statement in appreciation of the deputies, emphasizing that the approval sends a significant message to creditors. It declared that “the fight against inflation is a State policy in our country.” The document further explained that this agreement would facilitate public credit operations to address existing debts with the Central Bank, ultimately reducing total public debt.

In the statement, the government underscored the considerable efforts by Argentines to achieve monetary stability, viewing the reorganization of the Central Bank as a crucial step in this process. They highlighted that stability is essential for preserving purchasing power and promoting long-term investment for companies free from economic uncertainties.

The government reiterated its commitment to ensuring that disinflation is achieved permanently and that exchange restrictions are lifted, as these are key mandates of their electoral platform. It is also important to note that DNUs require approval from either congressional house to be valid, independent of opposition from the other house.

Adding to the government’s recent success, a large turnout of citizens participated in a traditional retirees’ march advocating for better wages and medical care for seniors. The event unfolded with heightened security measures outside Congress and was markedly more peaceful compared to previous weeks, when over 100 individuals were arrested and dozens suffered injuries. This included freelance photojournalist Pablo Grillo, who is currently in delicate condition but has shown signs of recovery.

Due to the ongoing situation, President Milei has canceled his planned trip to Israel this coming weekend, reflecting the domestic challenges that he continues to navigate as he leads his administration.

The approval of President Javier Milei’s Emergency Decree by the Lower House marks a significant step toward bolstering Argentina’s economy, particularly in managing existing debts and stabilizing the nation through IMF borrowing. The support from multiple political factions reflects a consensus on the urgency of addressing inflation and fiscal challenges. The subsequent retirees’ march further highlights social issues as the government reassesses its operational direction amidst ongoing domestic pressures.

Original Source: en.mercopress.com