Argentina IMF deal faces key vote in Congress
By Nicolás Misculin
BUENOS AIRES (Reuters) - Argentina's Congress started debating and will likely vote on a potential new deal between the South American country and the International Monetary Fund (IMF) on Wednesday, a key hurdle for the program the country needs to gets its finances in order.
The lower Chamber of Deputies began debate on Wednesday morning on a decree issued by President Javier Milei's government earlier this month that supported a new IMF program. Congress can block the decree if both chambers vote against it.
The country, which is battling with negative net foreign currency reserves after years of over-spending, currency crises and regular defaults, is the IMF's biggest borrower with 22 loan programs to date. It is still repaying a 2022 $44 billion deal.
The government says a new deal is needed to help bolster the central bank's accounts and allow the country to move towards undoing capital controls that have been in place since 2019 and that it says stymie business and investment.
Milei's libertarian party has only a small minority in Congress, but he has pushed through some of his agenda by winning over conservative and moderate allies. The party is confident it will get enough support for the IMF decree.
"I support this though with a critical eye. I will vote in favor," moderate Peronist opposition lawmaker Miguel Pichetto told reporters on Wednesday.
"I have a critical view of the DNU (decree). I think it lacks explanations... but I think we need to think primarily about Argentina."
Milei, a political outsider who won a shock election in 2023 pledging to end years of economic crisis in Argentina, has lowered inflation and overturned a deep fiscal deficit, but now faces the challenge of reviving growth and rebuilding state coffers.
The IMF deal will test Milei's ability to win over legislative support. He angered some lawmakers by pushing the deal via a presidential decree rather than through a regular bill in Congress.
His tough austerity and spending cuts have also increased poverty rates and triggered protests against his government, especially by hard-hit pensioners. A regular weekly protest was expected later on Wednesday outside Congress.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
12 minutes ago
Trump's actions in Los Angeles spur debate over deportation funds in his 'big, beautiful' bill
WASHINGTON -- President Donald Trump's 'big, beautiful bill' in Congress includes more than tax breaks and spending cuts — it also seeks to pour billions of dollars into the administration's mass deportation agenda. Republican leaders capitalized Tuesday on the demonstrations in Los Angeles, where people are protesting Trump's immigration raids at Home Depot and other places, to make the case for swift passage of their sprawling 1,000-plus-page bill over staunch Democratic opposition. House Speaker Mike Johnson said the One Big Beautiful Bill Act delivers 'much-needed reinforcements,' including 10,000 new Immigration and Customs Enforcement agents, $45 billion to expand migrant detention facilities and billions more to carry out at least 1 million deportations a year. 'All you have to do is look at what's happening in Los Angeles to realize that our law enforcement needs all the support that we can possibly give them,' said Senate Majority Leader John Thune, R-S.D. The focus on some $350 billion in national security funding comes as action on the massive package is lumbering along in Congress at a critical moment. Trump wants the bill on his desk by the Fourth of July. But Senate Republicans trying to heave it to passage without Democrats are also running up against objections from within their GOP ranks over the details. At the same time, Democrats are warning that Trump's executive reach into California — sending in the National Guard over the governor's objections and calling up the Marines — is inflaming tensions in what had been isolated protests in pockets of LA. They warned the president's heavy-handed approach has the potential to spread, if unchecked, to other communities nationwide. 'We are at a dangerous inflection point in our country,' said Rep. Jimmy Gomez, who represents the Los Angeles area. 'Trump created this political distraction to divide us and keep our focus away from his policies that are wreaking havoc on our economy and hurting working families," he said. "It's a deliberate attempt by Trump to incite unrest, test the limits of executive power and distract from the lawlessness of his administration.' At its core, the bill extends some $4.5 trillion in existing tax breaks that would otherwise expire at the end of the year without action in Congress, cutting some $1.4 trillion in spending over the decade to help offset costs. The Congressional Budget Office found the bill's changes to Medicaid and other programs would leave an estimated 10.9 million more people without health insurance and at least 3 million each month without food stamps from the Supplemental Nutrition Assistance Program. At the same time, CBO said the package will add some $2.4 trillion to deficits over the decade. One emerging area of concern for Republican leaders has been the bill's status before the Senate parliamentarian's office, which assesses whether the package complies with the strict rules used for legislation under the so-called budget reconciliation process. Late Monday, Republicans acknowledged potential 'red flags' coming from the parliamentarian's office that will require changes in the House bill before it can be sent to the Senate. Leaders are using the reconciliation process because it allows for simple majority passage in both chambers, were GOP majorities are razor-thin. House Majority Leader Steve Scalise said Republicans are preparing to address the concerns with a vote in the House, possibly as soon as this week, to change the package. Senate Democratic Leader Chuck Schumer seized on the House's upcoming do-over vote as a chance for Republicans who are dissatisfied with the package to reassert their leverage and 'force the bill back to the drawing board.' 'They say they don't like parts of the bill — now is their opportunity to change it,' Schumer said. On Tuesday, Vice President JD Vance was dispatched to speak with one GOP holdout, Sen. Ron Johnson of Wisconsin, who has pushed for deeper spending reductions in the bill to prevent skyrocketing deficits from adding to the nation's $36 trillion debt load. Other Republican senators have raised concerns about the health care cuts. But Republicans are in agreement on border security, deportation and military funding, over the objections of Democrats who fought vigorously during the committee process to strip those provisions from the bill. The package includes about $150 billion for border security and deportation operations, including funding for hiring 10,000 new ICE officers — with what Johnson said are $10,000 hiring bonuses — as well as 3,000 new Border Patrol agents and other field operations and support staff. There's also funding for a daily detention capacity for 100,000 migrants and for flights for 1 million deportations annually. The package includes $46 billion for construction of Trump's long promised wall between the U.S.-Mexico border. Additionally, the bill includes $150 billion for the Pentagon, with $5 billion for the military deployment in support of border security, along with nearly $25 billion for Trump's 'Golden Dome' defense system over the U.S. Separately, the bill adds another $21 billion for the Coast Guard. Democrats have argued against the deportations, and warned that Trump appears to be stirring up protests so he can clamp down on migrant communities. Rep. Nanette Barragan — whose district represents the suburban city of Paramount, where the weekend Home Depot raid touched off protests — implored Americans: 'Listen to the words of this administration: They're using words like insurrection. They're using words like invasion.' She warned the administration is laying the groundwork for even steeper actions. 'That's a concern,' she said. 'That is dangerous. It's wrong.'
Business Insider
32 minutes ago
- Business Insider
US gives conditions for Rwanda-DR Congo peace deal
The United States has set forth critical conditions for facilitating a peace agreement between Rwanda and the Democratic Republic of Congo (DRC), with a key demand being the complete withdrawal of Rwandan troops from eastern Congo before any formal deal can be signed. The United States has proposed conditions for a peace agreement between Rwanda and the Democratic Republic of Congo Washington is pressuring Rwanda to end military activities in the region to facilitate a sustainable resolution to ongoing conflicts. The U.S. is leveraging mineral investments in the DRC for strategic peace efforts, aiming to stabilize the region and counter foreign influences. Sources familiar with the ongoing negotiations indicate that the United States is exerting significant pressure on Rwanda to cease its military activities in the DRC and conflict-ridden region, which has long been destabilized by armed groups and foreign interventions. This diplomatic effort, led by the U.S., aims to de-escalate hostilities and pave the way for a sustainable resolution to the violence. According to Reuters, a draft version of the proposed peace agreement explicitly states that Rwanda must remove all troops, weapons, and military equipment from Congolese territory as a condition for finalizing the deal. The report has been verified by four diplomatic sources, who confirmed to Reuters that it was authored by U.S. officials. This document marks a substantial step beyond the earlier declaration of principles signed by the foreign ministers of both countries in April during a ceremony in Washington, attended by U.S. Secretary of State Marco Rubio. That earlier agreement committed the parties to resolving their security disputes in a manner that respects each nation's territorial integrity and sovereignty, but did not include specific withdrawal demands. US leverages mineral access for peace Several months ago, the United States launched a major mineral deal in the Democratic Republic of Congo (DRC) as part of a broader strategy aimed at securing a peace agreement between the DRC and neighboring Rwanda. This move emphasized Washington's deepening diplomatic and economic involvement in a region long plagued by conflict, particularly in the eastern provinces, where immense mineral wealth has historically fueled violence and foreign intervention. The proposed agreement, which would open access for U.S. and allied companies to Congo's rich deposits of critical minerals such as cobalt, coltan, lithium, and gold, is being positioned not simply as an economic transaction, but as a calculated geopolitical instrument. The rationale behind it is straightforward: establishing peace and stability in the region would not only unlock large-scale investment but also curb the expanding influence of global competitors, especially China, in Africa's strategic resource sectors. Rwanda has been accused of backing the M23 rebel forces, while Kigali maintains that the Democratic Republic of Congo is collaborating with armed groups hostile to Rwanda's national security. Political momentum for the peace process gained traction with a high-level visit by President Donald Trump's Adviser for African Affairs, Massad Boulos, who traveled to the region to meet with both Congolese and Rwandan officials. ' You have heard about a minerals agreement. We have reviewed the Congo's proposal. I am happy to announce that the president and I have agreed on a path forward for its development, ' Boulos said following his meeting with Congolese President Félix Tshisekedi in Kinshasa. By linking the withdrawal of foreign troops, particularly those from Rwanda to prospects for peace and economic growth, the United States aims to simultaneously address regional security challenges and promote development.
Wall Street Journal
34 minutes ago
- Wall Street Journal
Lutnick: U.S.-China Talks Going ‘Really Well,' Could Continue for Third Day
U.S. Secretary of Commerce Howard Lutnick answers questions from the media in London. (Toby Melville/Reuters)
