Latest news with #DNU
Yahoo
19-03-2025
- Business
- Yahoo
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.
Reuters
19-03-2025
- Business
- Reuters
Argentina IMF deal faces key vote in Congress
BUENOS AIRES, March 19 (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.
Yahoo
11-03-2025
- Business
- Yahoo
Argentina government publishes decree backing new IMF program
By Gabriel Burin BUENOS AIRES (Reuters) - Argentina's government formalized a decree of necessity and urgency (DNU) on Tuesday in a key step towards sealing a new International Monetary Fund (IMF) program, according to the document published in the official gazette. The decree, part of a strategy by libertarian President Javier Milei to help the IMF plan get through Congress, is the most concrete sign yet that a deal is close, which would help the embattled country meet its debts and end capital controls. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The decree said that the program would involve a repayment period of 10 years with a grace period of four years and six months. It added that the new funds received would be used to pay off the Treasury's debt with the central bank (BCRA). It did not give the size in dollars of the new program. Argentina is the IMF's largest creditor and has a mottled history with the Washington-based lender. The South American grains producer has had 22 programs with the fund, including a recent $44 billion program that it is still repaying. Milei's government has imposed tough austerity that has helped overturn entrenched fiscal deficits and brought down triple-digit inflation, but central bank reserves remain negative on a net basis, limiting the government's firepower. In the decree, the government said that net reserves had been negative $11.2 billion in December 2023 when Milei came into office and had improved by some $7 billion since, suggesting they remained around $4 billion in the red. New IMF funds would help bolster that balance and potentially pave the way for Milei to undo capital controls in place since 2019, which skew business and trade. The decree marks a change from the normal process for new IMF programs, which would usually be sent in the form of a bill to Congress. A decree only requires support from one chamber of the legislature, making it easier to get approved.
Reuters
11-03-2025
- Business
- Reuters
Argentina government publishes decree backing new IMF program
BUENOS AIRES, March 11 (Reuters) - Argentina's government formalized a decree of necessity and urgency (DNU) on Tuesday in a key step towards sealing a new International Monetary Fund (IMF) program, according to the document published in the official gazette, opens new tab. The decree, part of a strategy by libertarian President Javier Milei to help the IMF plan get through Congress, is the most concrete sign yet that a deal is close, which would help the embattled country meet its debts and end capital controls. The decree said that the program would involve a repayment period of 10 years with a grace period of four years and six months. It added that the new funds received would be used to pay off the Treasury's debt with the central bank (BCRA). It did not give the size in dollars of the new program. Argentina is the IMF's largest creditor and has a mottled history with the Washington-based lender. The South American grains producer has had 22 programs with the fund, including a recent $44 billion program that it is still repaying. Milei's government has imposed tough austerity that has helped overturn entrenched fiscal deficits and brought down triple-digit inflation, but central bank reserves remain negative on a net basis, limiting the government's firepower. In the decree, the government said that net reserves had been negative $11.2 billion in December 2023 when Milei came into office and had improved by some $7 billion since, suggesting they remained around $4 billion in the red. New IMF funds would help bolster that balance and potentially pave the way for Milei to undo capital controls in place since 2019, which skew business and trade. The decree marks a change from the normal process for new IMF programs, which would usually be sent in the form of a bill to Congress. A decree only requires support from one chamber of the legislature, making it easier to get approved.
