The Monetary Fund has sanctioned a $800 million loan for Argentina.
The International Monetary Fund (IMF) has given Argentina the green light for an additional 800 million Dollar loan, as prescribed by the country's austerity measures. The IMF pointed out that the austerity program being followed by President Javier Milei is on track, which has led to the release of 793 million Dollars (740 million Euros). So far, the IMF has loaned Argentina a staggering sum of 41 billion Dollars.
President Milei found the decision by the IMF encouraging and said, "The good news keeps coming." Interestingly, back in May, Argentina saw a significant drop in the inflation rate to 4.2 percent - the lowest rate observed in the last two and a half years.
Milei, a right-wing populist and self-proclaimed "Anarcho-Capitalist," has opted for a stringent economic policy to combat the country's rampant inflation and kick-start its faltering economy. His measures include devaluing the Argentine Peso and slashing government subsidies. Public outrage against his policies has led to regular protests, the most recent one resulting in over 40 people getting injured on a Wednesday.
The events of a Thursday saw the Senate in Buenos Aires passing Milei's reform package, which contains a one-year "economic emergency" law. This law would allow the President to take measures such as dissolving government agencies and privatizing state enterprises. The Senate also approved measures related to reducing pensions and limiting labor rights. These measures are now awaiting approval in the House of Deputies.
Initially, the reform package was almost three times more extensive. However, the scale was reduced to obtain approval from the Senate. Milei's party only has a minority in both the senate and house of deputies, making this the first successful legislative initiative for the government since December.
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Argentina is planning to use a portion of the IMF's loan for implementing a credit course as part of its savings program. The successful passage of President Milei's reform package, which includes privatizing state enterprises and reducing pensions, could potentially attract more investments from the Monetary Fund.
