Argentina's debt deal with IMF gets final legislative OK
IndependentNov 25, 2021
Argentina Unlocks $4.7B From the International Monetary Fund
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The Facts
Argentina on Wednesday secured $4.7B from the International Monetary Fund (IMF) as new President Javier Milei looks to revive an economy that is grappling with 160% annual inflation and a 40% poverty rate.
After a week of negotiations, Milei's government unlocked the money as part of an agreement to pay down the $44B it owes the IMF. The $4.7B is not a new loan but is rather part of pending disbursements from a previous deal between the two parties. The government will use the money to help pay its debt.
The Spin
Right narrative
Pres. Javier Milei is doing all he can to fix the utter economic disaster left by his leftist predecessor, and his agreement to secure $4.7B from the IMF shows that he has institutional backing. This agreement does not add any more debt to Argentina's balance sheet, but it does grant Milei's government flexibility to determine how it will pay down the money it owes the IMF. The road was never going to be easy, but Milei's ambitious economic plan is already restoring Argentina's legitimacy. Economic recovery will take time, but Milei’s free-market approach will yield great dividends in the future.
Left narrative
While many Argentinian people may have agreed with Milei's brash rhetoric and hardline approach to economics, the honeymoon phase is wearing off quickly as markets react to his administration's extreme policies. After a month, Argentina's inflation continues to skyrocket, and he has no defined plans to pay off the country's massive debt. Milei is trying to buy time by securing IMF payments, but that won’t fix Argentina's economic crisis — especially with such severe austerity.
