This Thursday night the government launched a statement where it claims that it will by decree the agreement with the International Monetary Fund (IMF). The DNU will be sent to Congress to be treated by the Bicameral Commission for Legislative Procedure. After the Macri agreement scam, the largest loan in the history of the IMF valided in 2022 by the front of all, Milei seeks a new indebtedness and by DNU. It is necessary to face it in the streets.
– President’s office (@opragentina) March 6, 2025
Just four days after having affirmed in an interview with Majul that the agreement would be treated in Congress for the “rules” of Argentine legislation, Milei is speechless and wants to impose it for DNU.
Milei’s word does not resist a week. At the opening of sessions he said that he was going to send a project to Congress to discuss the agreement with the IMF. Today they say in a statement that it will be a DNU! That is, his intention is that there is zero debate in Congress. Faced with this maneuver …
— Christian Castillo (@chipicastillo) March 6, 2025
The lack of dollars puts Milei in trouble, after a year of brutal adjustment the government failed to accumulate reserves, intervening to contain a “cheap” exchange rate as an anchor so that inflation does not shoot. According to the latest BCRA (Central Bank) report, the current account in the market was deficit for eighth consecutive month in February by marking a red of US $ 1,656 million. This result, added to debt payments, is what generates reserves to follow their sinking in the negative field for around USD 10,000 million according to some estimates.
This situation becomes increasingly unsustainable. Not to obtain new funds, the government would be forced to devalue, accelerating inflation (as in early 2024) and leaving the new caputo scam.
A new scam: add more debt debt
In the statement, the government states that “said agreement will imply a public credit operation through which the national treasure will cancel existing debt with the Central Bank.” That is, the treasure instead of duty to the BCRA (an accounting gadget), would become debt to an international organism such as the IMF, reinforcing the dependence of the country.
Meanwhile the IMF does not give signs of specifying the agreement. The background wants a lifting of the stocks, even if it is gradual, a rise in the dollar to correct the exchange backwardness and that the American currency floats, within a certain band, without intervention of the Central Bank. The government knows that what the fund asks for impacts inflation.
Some of the great international banks that had been supporting Milei began to make differences and align with the devaluation of the IMF: the Bank of America estimated a dollar above 1400 pesos by the end of the year, a figure greater than 1200 to which the government points; And the Citi Group said that the artificial containment of the exchange rate “will drive imports and lower exports” concluding “pressures towards a new devaluation of the exchange rate” that “could be intensified.”
The points of the possible “agreement” are not yet public, but nothing good I can bring a new loan with the fund that would increase the external debt and dependence of the country with the agency whose economic policies have multiplied poverty in Argentina.
Milei’s DNU is as illegal and fraudulent as the debt with the IMF that Macri took and the government of Alberto endorsed with a new agreement. Another scam of the authoritarian government of the extreme right. More adjustment and looting. We will reject it in Congress and in the streets.
– Nicolas del Caño (@nicolasdelcano) March 7, 2025
While a group of speculators takes the party with financial timba and indebtedness, the government adjusts retirees, education, health, public works, to pay the fraudulent external debt with the complicity of the CGT and the CTA that lets you pass all the attacks.
From the left they mark the need to know sovereignly this debt, of which the working people did not see a weight. To avoid structural reforms it is key to break with the IMF and defeat the adjustment and looting plans of Milei and the Great Capital in the streets.
Source: www.laizquierdadiario.com
