Argentina and the International Monetary Fund announced on Wednesday an agreement to disburse a sum of 4.7 billion dollars as part of a debt restructuring plan for the Latin American nation.
The situation has worsened in the third largest economy in Latin America due to the accumulation of debts for decades and poor financial management, while inflation rates have exceeded 160% from one year to another, and 40% of Argentinians suffer from poverty.
The package is still awaiting approval from the Board of Directors of the International Monetary Fund.
Through this agreement, the newly appointed Argentine president, Javier Melli, implements a $44 billion rescue package that was negotiated with the International Monetary Fund in 2018. Melli has inherited a severe social, economic, and financial crisis.
The administration of former president Alberto Fernández tried to negotiate the loan, but the recession that accompanied the COVID-19 pandemic and the severe drought this year have made it difficult for Argentina to achieve the agreed objectives with the International Monetary Fund.
The new agreement was reached during the review of this loan package. The Minister of Economy, Luis Caputo, confirmed while announcing the agreement that “it is not new”.
Mili took steps to fulfill the commitment she made during her campaign to reduce public spending and bring about a change in the economy, which is currently facing inflation and other challenges.
In addition, last month Milly presented a set of changes to the laws to Congress that would allow the privatization of over 40 public companies and restrict the right to assembly and demonstration.
