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Milei's administration will look to do a DNU for the IMF new agreement.
IMF Agreement: The Government Will Send a DNU to Congress to Obtain Support
The government of Javier Milei is considering approving the new agreement with the International Monetary Fund (IMF) through a Decree of Necessity and Urgency (DNU) instead of a bill. This strategy aims to bypass a possible blockade by the Kirchnerism in the Senate.
Key points of the agreement and the situation:
The IMF could lend Argentina up to US$20 billion, including US$8 billion in fresh funds.
The agreement seeks to recapitalize the Central Bank and reduce Treasury debt.
Capital payments to the IMF resume in September 2026.
The IMF has expressed that "strong ownership and broad support are key to the program's success."
However, the organization clarified that obtaining Congressional support is a decision for Argentine authorities according to domestic legislation.
The government argues that the agreement should not be considered as "new indebtedness" but as refinancing of existing debts.
The 2021 law establishes that any credit operation with the IMF requires Congressional approval.
Some economists believe that the use of a DNU would not be valid in this context.
The Minister of Economy, Luis Caputo, stated that the agreement will be finalized in the first quarter of 2025 and that it will not involve a devaluation. The decision to use a DNU instead of a bill generates debate about the legality and legitimacy of the process, as well as the role of Congress in approving agreements with the IMF.
IMF Agreement: The Government Will Send a DNU to Congress to Obtain Support
The government of Javier Milei is considering approving the new agreement with the International Monetary Fund (IMF) through a Decree of Necessity and Urgency (DNU) instead of a bill. This strategy aims to bypass a possible blockade by the Kirchnerism in the Senate.
Key points of the agreement and the situation:
The IMF could lend Argentina up to US$20 billion, including US$8 billion in fresh funds.
The agreement seeks to recapitalize the Central Bank and reduce Treasury debt.
Capital payments to the IMF resume in September 2026.
The IMF has expressed that "strong ownership and broad support are key to the program's success."
However, the organization clarified that obtaining Congressional support is a decision for Argentine authorities according to domestic legislation.
The government argues that the agreement should not be considered as "new indebtedness" but as refinancing of existing debts.
The 2021 law establishes that any credit operation with the IMF requires Congressional approval.
Some economists believe that the use of a DNU would not be valid in this context.
The Minister of Economy, Luis Caputo, stated that the agreement will be finalized in the first quarter of 2025 and that it will not involve a devaluation. The decision to use a DNU instead of a bill generates debate about the legality and legitimacy of the process, as well as the role of Congress in approving agreements with the IMF.
